Indian Crypto Traders Hit with New 18% GST on Bybit: What It Means for You. By ChainFabricNews

By -

Image source: The Crypto Times

Indian crypto users woke up to a significant change this July—Bybit, a major global crypto exchange, has started charging an 18% Goods and Services Tax (GST) on a wide range of services. This new tax, introduced on July 7, 2025, applies to trading fees, staking, margin trading, and even simple deposits and withdrawals.

For many Indian traders, this is yet another financial pinch on top of the 30% income tax on crypto profits and 1% TDS (Tax Deducted at Source) already in place. Now, every time a user pays a fee on Bybit, they’ll also have to pay 18% GST on top of it.

What Services Are Affected?

Bybit has clarified that the GST will apply to a variety of its offerings, including:

  • Spot and margin trading

  • Staking rewards and earnings

  • Fiat deposits and withdrawals (via bank or card)

  • Liquidation fees, auto-conversions, and more

Even services like Bybit Pay and crypto copy trading are now taxable. In short, nearly every action that incurs a platform fee will now be more expensive for Indian users.

Why This Matters

This move is part of a broader trend where Indian authorities are tightening regulations around cryptocurrencies. While the government has not outright banned crypto, it has made trading more expensive and complex through various tax measures.

For traders, this means that profit margins will shrink. Imagine this: if you pay ₹1,000 in trading fees, you now have to add ₹180 just for GST. That’s on top of TDS and capital gains tax, meaning the same transaction could be taxed three times in different ways.

How Are Traders Reacting?

Unsurprisingly, many users are frustrated. Some are exploring Decentralized Finance (DeFi) platforms that don’t charge traditional platform fees or report to Indian tax authorities. Others are simply reducing their trading activity or looking for more tax-friendly jurisdictions.

A growing number of traders also hope that the government will reconsider the current tax structure. Leading Indian exchanges like CoinSwitch and CoinDCX have called for a lower transaction fee—perhaps 0.1%—which would encourage trading activity while still keeping it regulated and traceable.

Looking Ahead: Hope for Balance

The timing of this GST move is especially important because the Indian government is expected to release a new crypto policy draft later in July. This upcoming paper may include updated regulations around stablecoins, investor protection, and potentially a more balanced tax structure.

It’s clear that India is not trying to ban crypto. Instead, the government is attempting to regulate it in a way that’s consistent with traditional finance. However, the current triple-tax setup could push everyday users away from legitimate platforms.

Final Thoughts

India’s crypto landscape is evolving quickly. With more regulations, users must stay informed and plan their trades wisely. While the new 18% GST from Bybit is a tough pill to swallow, it could also lead to important conversations around tax reform and better clarity in the months to come.

For now, traders should keep records of all transactions, consult with tax experts, and monitor updates closely. The crypto journey in India is far from over—it’s just entering a new chapter.

 

Comments

Post a Comment

Popular posts from this blog

Massive Crypto Money Laundering Syndicate Uncovered in Australia By ChainFabricNews

By -
Image
Image source: Financial Crime Academy    In a shocking turn of events, Australian authorities have busted one of the country’s biggest crypto-related money laundering operations, estimated to have handled over A$190 million . What looked like a typical Gold Coast security business was actually part of a sophisticated network converting dirty cash into digital currency—and it all came crashing down after an 18-month investigation. How It All Started The story began back in late 2023, when law enforcement agencies noticed unusual financial activity linked to a cash-in-transit business. At first glance, the company seemed legitimate. But behind the scenes, it was allegedly being used to clean vast sums of illicit money by blending it with lawful business income and converting it into cryptocurrency. After months of surveillance, digital tracking, and old-fashioned detective work, police made their move in June 2025. Four People Arrested Four individuals have been arrested an...
Read more

Ant Group Eyes Stablecoin License in Hong Kong — A Game Changer for Global Payments? By ChainFabricNews

By -
Image
Image source: The coin Republic In a bold new move, Ant International — the overseas arm of China’s Ant Group — is getting ready to step into the world of stablecoins. The company recently announced its plan to apply for a stablecoin license in Hong Kong under the city’s brand-new regulatory framework, which kicks in on August 1, 2025 . This could mark a major shift not only for Ant Group but also for the future of digital payments across Asia and beyond. What’s a Stablecoin and Why Is Ant Interested? A stablecoin is a type of cryptocurrency that's backed by real-world assets, such as the US dollar or other fiat currencies. It’s designed to hold a steady value, unlike more volatile cryptos like Bitcoin. This makes stablecoins especially useful for things like cross-border payments, remittances, and fast online transactions . Ant International, best known globally for powering Alipay’s cross-border payment systems, says it's ready to explore the stablecoin space by applying fo...
Read more

Japan’s Metaplanet Is Turning Heads with a Bold Bitcoin Bet By ChainFabricNews

By -
Image
Image source: Bitcoin World In a move that’s surprising even longtime investors, a Tokyo-based hotel company called Metaplanet is making a massive shift—from managing hotels to becoming one of the biggest corporate holders of Bitcoin in the world. Yes, you read that right. What was once a traditional hospitality firm is now aiming to buy 210,000 Bitcoins (around 1% of all the BTC that will ever exist) by 2027. To fund this, the company plans to raise over $5 billion . It’s a bold and unusual strategy, and it’s capturing the attention of the crypto world and financial markets alike. From Beds to Blockchain Metaplanet is following in the footsteps of U.S.-based MicroStrategy , a company known for using its cash and stock to stack Bitcoin. Metaplanet’s stock has seen massive gains in just a couple of years, with prices skyrocketing over 8,000% since it started its crypto journey. Instead of buying more hotels or expanding its real estate business, Metaplanet is issuing millions of sha...
Read more