🧾 Key Highlights from the Announcement:
• Platform Affected: Bybit (a popular global crypto exchange)
• New Policy: Indian users will be charged 18% GST on all crypto-related services, including:
• Spot trading
• Futures trading
• Copy trading
• Exchange fees or commissions
• Tax Enforcement Basis: This move aligns with India’s VDA (Virtual Digital Assets) regulations and GST laws, specifically targeting import of online services by Indian residents from overseas platforms.
💡 What This Means for You:
✅ GST Will Be Charged on Service Fees
• Example: If Bybit charges you $100 in fees for trading, $18 (₹1,500+) will be added as GST.
• This does not apply to the amount you trade, only the service fee portion.
📍 This Is in Addition To:
Tax Type Rate Applies To
Capital Gains Tax 30% On profit from crypto trades
TDS (Tax Deducted at Source) 1% On every sale of crypto
GST (New) 18% On service/trading fees charged by the platform
🔥 Why This Is Significant:
India is now among the top 3 countries globally with the highest total crypto tax burden.
Country Capital Gains Tax TDS/Transaction Tax GST/VAT on Services Notes
🇮🇳 India 30% 1% TDS 18% GST Heaviest combined tax load
🇺🇸 USA Up to 20% None Some states apply tax No TDS
🇸🇬 Singapore 0% 0% 0% Crypto-friendly
🇦🇪 UAE 0% 0% 0% Tax-free for most
🧠 Strategic Tips:
• Track all fees separately – GST will show up as a separate charge in invoices/bills on Bybit.
• Stay compliant – Not paying GST on foreign services could trigger enforcement under FEMA or RBI’s crypto rules.
• Consider trading volume – High-frequency traders will be affected the most by the cumulative tax (1% TDS + 18% GST + 30% gains tax).
• Explore local vs. offshore – Indian platforms already charge GST; now foreign platforms like Bybit will too.
