July 09, 2025
By Our Correspondent
In addition to discontinuing some of its products, cryptocurrency exchange Bybit is raising transaction fees for Indian consumers as it gets ready to impose an 18% goods and services tax on all of its crypto services. On July 4, Bybit declared that it would start implementing India’s 18% GST on a range of trading and service fees on July 7.
The business declared: Virtual Digital Asset Service Providers must impose an 18% Goods and Services Tax (GST) on trading and service fees paid to Indian citizens in compliance with the country’s tax structure.
The cryptocurrency exchange confirmed, “Bybit will be implementing the GST charge on below services starting from July 7, 2025, in compliance with this requirement.”
With deductions made straight from received assets, the tax will be applied to spot and margin trading, derivatives, fiat transactions, and cryptocurrency withdrawals. For example, after deducting 118 USDT in fees and GST, a user who sells one bitcoin for 100,000 USDT will now receive 99,882 USDT.
GST will be charged to Unified Trading Accounts for conversion actions, such as automatic repayments and liquidations. While APR Boost rewards are unchanged, GST will also be subtracted from service fees on interest distributions for native staking using On-Chain Earn.
Withdrawals of cryptocurrency, including those that recover assets that were mistakenly deposited, will be subject to GST.
The business explained that GST is applied to all transfers between users and merchants and is determined by the spread for transactions including Bybit Pay, fiat buy/sell options, and over-the-counter trading.
According to Bybit, the fee components of Initial Margin and Maintenance Margin will increase in accordance with the inclusion of GST in the order cost calculation. In addition to the current 30% tax on cryptocurrency profits and the 1% Tax Deducted at Source (TDS), there is an additional 18% GST.
Bybit will also stop providing a number of services in India on July 9. The Bybit card, legacy cryptocurrency loans, and several trading bots, including Futures Combo, DCA, and Spot Grid, will no longer be accepted. By July 17, cardholders will no longer be able to make new purchases, and any outstanding debt will be automatically reimbursed.
While some proponents of cryptocurrency contend that growing tax burdens will impede the expansion of India’s crypto industry and deter long-term adoption, these changes are a reflection of Bybit’s larger compliance approach.
