Bybit will now charge 18% GST in India: What will change for crypto users from July 7, 2025?
The tax and regulation environment regarding cryptocurrencies in India is becoming increasingly strict. After the Finance Act of 2022, where 30% tax and 1% TDS was implemented on crypto profits, now another big update has come to the fore. Popular crypto exchange Bybit has announced that it will charge 18% GST on its service fees from July 7, 2025, complying with India’s GST laws.
What is the new change?
Bybit will now charge 18% GST on its various services from users in India. This includes the following services:
Spot and Margin Trading
Derivatives Transactions
Fiat Deposits and Withdrawals
Cryptocurrency Withdrawals
Auto Conversions and Liquidations (under Unified Trading Accounts)
On-chain Staking Services
OTC (Over the Counter) and Bybit Pay Transactions
This tax will only apply to service fees, not the entire crypto trade value.
Income Tax is separate, GST is separate
With this move of Bybit, it is clear that now those doing crypto trading in India will have to take care of not only Income Tax but also GST.
- 30% Income Tax: Fixed 30% tax on profits from crypto
- 1% TDS: Applicable on every transaction
- Now 18% GST: Applicable on all service fees
Bybit’s place in GST law
Despite Bybit not having any office in India, it has been brought under the purview of Central Goods and Services Tax Act, 2017 (CGST Act) and Integrated Goods and Services Tax Act, 2017 (IGST Act) for the services being provided in India.
According to Section 9(1) of the CGST Act:
“GST will be applicable on every service provided in India, even if the service is being provided from outside the country.”
According to Section 13 of the IGST Act, if the service receiver is in India and the service provider is abroad, then in some cases the Reverse Charge Mechanism (RCM) applies. But if the company is registered in India or operating in India, it will charge and remit GST itself — as Bybit is now going to do.
At what rate will GST be levied?
There is no special rate or exemption for crypto-related services. Therefore, 18% GST has been implemented by putting it in “Other services not classified elsewhere” under Notification No. 11/2017-Central Tax (Rate).
Service Classification:
9984: Telecommunications, broadcasting and information supply services
or
9997: Other miscellaneous services (for activities like crypto exchange)
On what will GST be levied?
It is worth noting that GST will not be levied on the entire transaction amount, but only on the service fee.
Example: If you paid a service fee of ₹100 while selling BTC, then ₹18 GST will be levied on it. Not on your transaction value.
Why is Bybit making this change?
Is Bybit voluntarily registering under GST laws in India or has it been included by the Government of India under mandatory registration (Section 24, CGST Act).
The reason for this is the increasing scrutiny and strict tax rules on Virtual Digital Asset Service Providers (VDASP) by the Government of India.
What will be the impact on users?
- Transactions will become expensive – because now 18% additional tax will have to be paid on service fees
- Net Payouts will decrease – Service fee + GST applicable on withdrawals as well
- Some services will be closed – Bybit has also announced that it is shutting down some services from July 9, 2025:
Bybit Card (completely blocked by July 17)
Legacy Crypto Loans
Spot Grid, DCA and Futures Combo Trading Bots
Why did Crypto come under the government’s eye?
In India, for the last few years, the government and the tax department have increased their eye on cryptocurrency. In the Finance Act 2022, crypto was declared as a “Virtual Digital Asset” under the tax law. Now under the GST law also this field is being counted in taxable services.
It is clear from this that even if crypto trading is done on a foreign platform, but if the user is from India, then it is necessary to pay tax.
Conclusion
This decision by Bybit reflects the rapidly changing crypto tax system in India. Now Indian users will have to take responsibility not only for earning profits but also for tax and GST compliance.
If you are a user of Bybit or any other crypto platform, then it is time to consult a professional tax advisor so that you can invest smartly while complying with the new rules.
Crypto is no longer just an investment vehicle — it has now become a subject of tax and compliance as well.