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

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.

• Also Read :
•   WazirX Users Take Legal Action Over Frozen Crypto Funds in Singapore
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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.

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