Bybit’s 18% GST for Indian Crypto Users: A Taxing New Era 🤑

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  • Bybit introduces a delightful 18% GST on all crypto services for Indians. 🎉
  • Indian traders will now enjoy the luxury of paying extra tax on spot, margin, and derivatives trades. 🤑
  • The joy of GST extends to fiat deposits, crypto withdrawals, staking, and special transfers. 🎉

Bybit, a major global cryptocurrency exchange, has announced that it will start charging an 18% Goods and Services Tax (GST) on all service and trading fees for its users in India. The exchange made this joyful announcement on July 4, and the new tax will be effective from today, July 7, 2025. 🎉

Indian Bybit Users Embrace Higher Costs with New GST

The GST will be imposed under India’s taxation regulations on Virtual Digital Asset Service Providers. Bybit clarified that the tax of 18% will be charged on virtually all crypto services on the site. This includes spot and margin trading, derivatives trading, and fiat operations like purchasing crypto using bank cards. Crypto withdrawals, staking rewards, and even special transfers made using Bybit Pay are also subject to taxation. 🤑

The tax will be charged on the trading fee in case of spot and margin trading. For instance, if a user is selling Bitcoins at 100,000 USDT, having been charged a 0.1 percent trading fee, the trading fee will be 100 USDT. Next, 18% GST will be charged on this fee by Bybit, adding 18 USDT more. In this situation, the user will get 99,882 USDT and not 99,900 USDT. 🤷‍♂️

The tax will also be imposed on trades of perpetual contracts, options, and spreads trading. The trading fee will include GST, raising the overall cost of placing an order. Opening and sustaining trades will now be more expensive for users. 🤑

This will also impose tax on the Unified Trading Account (UTA) of Bybit. Each manual or automatic repayment, where the realization of tokens is involved, will attract a GST component. However, the interest component of loans will be exempted from GST. 🎉

Bybit Expands GST to Fiat, Staking, and OTC Trades

The new tax will also apply to Fiat services. There will be GST whether someone deposits fiat into the platform, withdraws it, buys and sells crypto using fiat, or purchases crypto with a bank card. In these situations, Bybit said that GST will be levied on the spread. The buy and sell price differ, and this difference, known as the spread, is regarded as a service fee under Indian taxation regulations. 🤑

Withdrawals are not exempt either. Withdrawals through crypto, or recovery of assets sent to the wrong address, will incur GST. The increment will be an 18% tax on the withdrawal fee, which will be deducted directly from the amount of the withdrawal. 🤷‍♂️

The new tax will also apply to services such as the conversion of small balances, OTC trading, and some crypto loan actions. If a user decides to stake tokens using the On-Chain Earn product by Bybit, the service fee charged on the claimed interest will be subject to GST. However, interest gained through the APR Boost will not be impacted. 🎉

Bybit became a registered company in India in February this year. It has since then carried on with full services to the current users and opened trading functions. It is also getting ready to receive new registrations of users. 🎉

However, this new tax will increase the budget of crypto trading in India once again. The action of Bybit is a response to the already high taxes charged on Indian crypto traders in the strict regulations governing cryptocurrency in the country. The additional GST will now be paid by over 310,000 active Indian users on Bybit upon every trade, stake, or crypto withdrawal. 🤑

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2025-07-07 21:24