Bybit officially implements an 18% Goods and Services Tax (GST) for cryptocurrency users in India starting July 7, 2025.

GST will be directly deducted from profit or transaction fees, and the exchange will also stop supporting some old products and services starting from July 2025.

MAIN CONTENT

  • The 18% GST applies to spot, margin, derivatives trading, and fiat-related activities.

  • Indian users will face cumulative taxes, affecting over 310,000 active accounts.

  • Bybit will stop offering old products such as cryptocurrency lending, fiat cards, and trading bots from July 2025.

How does Bybit apply the 18% GST tax to cryptocurrency transactions in India?

Bybit will charge an 18% tax on all money transfer and trading transactions between users and service providers. The tax is calculated based on the price difference and service fees according to the new Goods and Services Tax (GST) regulations in India.

Specifically, transactions including spot trading, margin trading, derivatives, and cryptocurrency purchases with fiat through banks or cards will be subject to this tax. The tax collection will directly affect transaction costs and user profits. Data from Bybit shows that over 310,000 active Indian users will be impacted; for example, an 18% tax on a transaction fee of 2,000 INR will be 360 INR, raising the total cost to 2,360 INR.

How does GST affect cryptocurrency users in India?

This tax change will increase transaction costs for users and may lead to a decline in trading volume in the cryptocurrency market in India. According to the Bybit CEO, "We expect GST to affect user behavior and investment strategies in India, but we remain committed to providing safe services and complying with local laws."

The application of an 18% GST is a crucial step to comply with the new tax regulations of the Indian government, creating a more transparent and sustainable trading environment.
Anna Lee, CEO Bybit, April 2024

Previously, India implemented a 30% capital gains tax and a 1% TDS for each cryptocurrency transaction since 2022, significantly cooling the market.

Which services will Bybit stop providing from July 2025?

Bybit announces it will cease offering legacy products starting July 9, 2025, to focus on tax compliance and service improvement.

  • Cryptocurrency lending: Borrowers must complete debt repayment before July 17; the system will automatically recover outstanding loans.

  • Bybit Card: Current cards will not be allowed to perform new transactions starting July 17, and no new card issuance applications will be accepted.

  • Automated trading bots: All bots will be suspended from July 9 due to new regulations from Bybit.

This decision is made to ensure stability and compliance with new legal regulations while enhancing user experience amid increasingly stringent tax policies.

Current status and prospects of cryptocurrency tax in India

The application of an 18% GST tax is an additional step after the 30% capital gains tax and 1% TDS, demonstrating the seriousness of the Indian government in regulating the cryptocurrency market. According to reports from financial experts in 2023, the strict tax policy has caused transaction volumes to drop by over 20%, raising questions about the tax absorption capacity of cryptocurrency investors in India.

"We can see that the new tax policies not only affect direct costs but also reshape the entire landscape of the cryptocurrency market in India."
Raghav Sharma, Blockchain Finance Expert, 2023

In this context, choosing compliant platforms and optimizing trading costs must be prioritized to maintain long-term profitability.

Products and services affected by the new tax and regulations

GST tax is applied to various types of transactions such as:

Transaction Type Tax Calculation Notes Spot and Margin Trading Based on transaction fees and price spread Applies to all buy and sell orders Derivatives Tax on service fees Includes futures and options Fiat Transactions Tax applies when buying cryptocurrency through banks or cards Applies to all payment methods Withdrawals May be taxed when refunding erroneous deposits Rarely encountered but still applicable Staking Tax on service fees and staking profits Applies to both services and profit-making products

Frequently Asked Questions

1. When will the 18% GST tax be applied? The tax will be applied starting July 7, 2025, on all transactions involving Indian users on Bybit. 2. Where can users see the deducted tax amount? GST tax information will be displayed in the transaction history, along with the corresponding fees. 3. Which products will cease to be offered due to new regulations? Cryptocurrency lending, fiat cards, and automated trading bots will be stopped from July 2025. 4. Does the tax affect trading profits? Yes, the GST tax increases investment costs, reducing the net profits of cryptocurrency financial investors. 5. How will Bybit support users with the new tax? Bybit commits to tax transparency, providing detailed information and guiding users to comply with legal regulations.

Source: https://tintucbitcoin.com/bybit-thu-thue-dich-vu-18-tu-7-7/

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