News View Non-AMP

Crypto Tax India: Here’s What the New 18% GST Means for Traders

Published by
Vignesh S G and Qadir AK

India has never been a crypto-friendly country. While other Asian nations welcomed digital assets, New Delhi chose a restrictive path, and now, things are getting even tougher.

India Crypto Tax Burden Just Got Heavier

Crypto influencer Keyur Rohit (176K+ followers on X) revealed that starting July 7, 2025, Bybit will apply 18% Goods and Services Tax (GST) to all crypto-related services for Indian users.

This makes India one of the highest-taxing nations in the crypto space globally.

What Will Be Taxed Under the New Rule?

According to Rohit, the 18% GST will apply to nearly all services on Bybit:

  • Spot and futures trading
  • Copy and bot trading
  • Staking rewards
  • Withdrawals
  • Card payments
  • Token swaps
  • Yield earnings
  • Deposits via card or bank

Notably, crypto loans and the Bybit Card will be discontinued for Indian users.

A Triple Tax Trap?

Here’s how crypto is currently taxed in India:

  • 30% tax on crypto profits
  • 1% TDS on every sell transaction
  • Now, 18% GST on all services (on Bybit)

This combination could push Indian crypto users away from regulated platforms.

Will Indian Users Shift to DeFi?

Rohit warns this move could discourage trading and encourage a shift to DeFi or peer-to-peer platforms, where:

  • Privacy is higher
  • Users avoid TDS on CEXs
  • Tax compliance becomes more complex—but possibly less immediate

The Bigger Picture

While avoiding tax isn’t advisable, India’s crypto ecosystem urgently needs a fair and innovation-friendly tax framework. Over-taxing could drive users underground and slow the sector’s growth. As of July 7, India’s crypto tax burden becomes heavier than ever. While DeFi might offer temporary relief, long-term change can only come from balanced regulation that supports innovation without stifling users.

FAQs

Which crypto services on Bybit are now subject to 18% GST for Indian users?

The 18% GST on Bybit for Indian users applies to a wide range of services including spot and futures trading fees, copy and bot trading, staking rewards, withdrawals, card payments, token swaps, yield earnings, and deposits via card or bank. Additionally, crypto loans and the Bybit Card are being discontinued for Indian users.

How does India’s “triple tax trap” affect crypto users?

India’s “triple tax trap” combines a 30% tax on crypto profits, a 1% TDS on every sell transaction, and now an 18% GST on exchange services. This heavy cumulative taxation may deter trading on regulated platforms, potentially pushing Indian crypto users towards decentralized finance (DeFi) or peer-to-peer (P2P) platforms for greater privacy and to avoid some taxes.

What is the overall impact of India’s crypto taxation on its digital asset ecosystem?

India’s stringent and increasing crypto taxation, including the 30% profit tax, 1% TDS, and now 18% GST on services, is driving users away from regulated platforms. This approach risks stifling innovation and growth in the crypto sector, potentially pushing activities underground rather than fostering a fair and innovation-friendly tax framework.

Vignesh S G and Qadir AK

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.

Sponsored and Advertisements:

Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.

Recent Posts

Canary Capital Files S-1 Amendment for Spot Litecoin and Hedera ETFs; Analysts Say Approvals Next

Canary Capital, a crypto investment firm, has filed amended S-1 filings for spot Litecoin (LTC)…

October 8, 2025

XRP Price Faces Bearish Outlook; Says Peter Brandt Amid Growing Impatience from Traders

Peter Brandt, a veteran trader, has cautioned a potential bearish outlook for XRP in the…

October 8, 2025

Bitcoin Price Drops 4% Today as Old Whales Reawaken Amid Leverage Flush

Bitcoin (BTC) price experienced a flash selloff on Tuesday after hitting its all-time high (ATH)…

October 8, 2025

Binance Coin Overtakes XRP and USDT to Rank 3rd Largest Digital Asset; What’s Next for BNB Price?

Binance Coin (BNB) has possibly entered its parabolic phase. The large-cap altcoin, with a fully…

October 8, 2025

Meme Coin Crypto Dogecoin Sees Holders Rushing To Enter The Early Stages Of This Potential Unicorn Crypto

Dogecoin (DOGE) remains one of crypto’s most recognisable names, but many long-term holders are beginning…

October 7, 2025

XRP Breaks Resistance, BNB Gains Strength—Yet Ozak AI’s Presale Momentum Steals the Show

Crypto markets in 2025 are displaying renewed signs of life, with blue-chip assets like XRP…

October 7, 2025