Bybit GST News: Indian Users to Pay 18% GST on Crypto Trading

Bybit GST News: Platform to Charge 18% GST on Crypto Services in India

Popular crypto exchange Bybit has announced it will start charging 18% Goods and Services Tax for Indian users from July 7, 2025. It is in accordance with the Indian Tax System. This will apply to nearly all crypto services on the platform. It will include  staking, trading, and withdrawals. 

Source: Keyur Rohit X Handle

But this Bybit GST news is not only about taxation. It depicts how it will add to the difficulty traders face in Indian cryptocurrency space. With higher taxes, weak rules, and security issues, many Indian users are giving up and global exchanges are pulling back. 

What Services Will Be Taxed as per this Bybit GST news?

In this Bybit GST news, the platform stated, charges will be added on top of normal service fees. Some services affected include:

• Spot and margin trading

• Derivatives (like perpetual and options contracts)

• Buying or selling with fiat

• On-chain withdrawals

• Staking, crypto loans, and Bybit Pay

Let’s say you sell 1 Bitcoin for $100,000. A 0.1% trading fee means you pay $100. With 18% GST on that fee, you pay another $18. So in the end, you only get $99,882. And that’s before other taxes.

Services Being Withdrawn 

The platform is also removing a few services in India from July 9, 2025:

• Old crypto loans will stop. Users have until July 17 to repay.

• The Card will stop working from July 17.

• Spot grid trading bots will also be turned off.

The Burden on Indian Investors and Traders

The Bybit GST news is just the recent complication for Indian crypto users. Right now, they already have to deal with:

• 30% tax on all profits by cryptocurrencies

• 1% TDS (tax deducted at source) on every trade over ₹50,000 (or even ₹10,000 in some cases)

Now with 18% GST added, it is becoming almost impossible to make good returns. Users are paying taxes even before they make a profit. 

The CEO of CoinDCX Sumit Gupta suggested that this is the reason why more than 5 million Indian users moved to foreign exchanges in just one year. Around $42 billion worth of trades left India, and the government actually lost $4.2 billion in potential tax revenue while collecting only $31 million via TDS. 

Weak Regulatory System Creates Uncertainty

India's tax regime on crypto is there, but its regulation is very weak. There is no stable cryptocurrency law, no clarification on exchange licensing, and no regulations on investor protection.

This Bybit GST news exposes that, rather than transparent guidelines, India operates on ad-hoc decisions, such as pulling apps from the Play Store, issuing unexpected fines, or suddenly changing policy. This exchange was pulled from the Play Store earlier this year and reinstated later after being fined $1 million by the FIU-IND.

The Reason Why India Is Losing the Global Digital Assets Race

Whereas some countries such as Thailand have exempted capital gains tax to aid in the development of digital assets, and other places such as Dubai and Singapore are developing innovation hubs, India is still hung up on taxing digital currencies without developing a defined regulatory framework.

Hacks and Losses Add to Investor Concerns

The lack of proper rules also leads to security problems. In 2024, Indian exchange WazirX lost over $230 million in a hack. 

Incidents like this hurt investor confidence. People are scared to put money into cryptocurrency when they feel there’s no protection.

India Needs Stronger, Fairer Crypto Rules

This Bybit GST news depicts that India needs to do more than just charge taxes. It requires to:

• Robust Digital Assets Regulation.  

• Lower the 30% tax and remove or fix the 1% TDS. 

• Better framework for eliminating elicit activities. 

• Operate with global standards for transparency. 

Final Thoughts

This Bybit GST news is an indication of larger issues. Excessive taxation, poor regulations, and security concerns are driving Indian users and exchanges out of the market. 

If the government wishes India to be a part of the future of cryto globally, it requires clear, equitable, and firm rules, not more taxes.