• Bybit has started charging an 18% GST on all crypto trading and service fees for Indian users from July 7.

  • Bybit will shut down crypto loans trading bots and block card services for Indian users starting July 9 and July 17.

  • Indian crypto users now face a higher tax load with GST added to the existing capital gains tax and 1 percent TDS

Bybit has introduced an 18% Goods and Services Tax (GST) on service and trading fees for Indian users. The change applies from July 7 and follows the exchange’s announcement on July 4. This GST will be automatically deducted from user assets. It covers various services including spot trading, derivatives, and margin trading.

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The tax also applies to fiat-related transactions, such as crypto purchases via bank cards. Additionally, it affects crypto withdrawals, incorrect deposit recoveries, staking, and Bybit Pay transfers. The GST will be calculated based on the fee or spread, depending on the type of transaction. Users will see the deducted tax in their transaction history.

Product Discontinuations Set for July 

Alongside the new tax, Bybit will phase out several products in India starting July 9. These include legacy crypto loans, which users must repay by July 17. After this deadline, any remaining balances will be auto-repaid. The Bybit Card, which marked its two year anniversary, will stop accepting new applications. Existing cards will be blocked from new transactions on July 17, and later deactivated.

Additionally, several automated trading bots will be discontinued. This marks a major shift for Indian users who rely on these services for daily operations. The move follows India’s already strict crypto tax regime, which has posed challenges for traders.

India’s Crypto Tax Burden Grows

Indian crypto users already face a 30% capital gains tax on profits from digital assets. In addition, a 1% tax deducted at source (TDS) is applied on each transaction. The introduction of an 18% GST now increases the overall cost of crypto trading further. The country has been pushing for tax cuts to boost crypto activity lately.

Recent enforcement efforts by the Income Tax Department have added pressure. The government’s compliance campaign has flagged users for underreporting income. Authorities are using data from exchanges to identify mismatches in tax returns. Losses cannot be offset, and no deductions are allowed under current law.

Industry Reactions and Policy Climate

Over 310,000 Indian users on Bybit are expected to be affected by the new GST rule. Industry groups have raised concerns that higher taxes could discourage participation. Some fear users may move to decentralized platforms to avoid the growing costs.

The crypto industry has repeatedly requested tax relief, pointing to the sector’s growth potential. In May, industry bodies urged the government to reduce the current tax rates. They cited examples from other countries with more supportive policies.

Calls for reform continue as India evaluates its position in the global digital asset landscape.