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.
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.
According to Rohit, the 18% GST will apply to nearly all services on Bybit:
Notably, crypto loans and the Bybit Card will be discontinued for Indian users.
Here’s how crypto is currently taxed in India:
This combination could push Indian crypto users away from regulated platforms.
Rohit warns this move could discourage trading and encourage a shift to DeFi or peer-to-peer platforms, where:
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.
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.
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.
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.
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