Bybit Implements 18% GST for Indian Crypto Users

The new GST charge signifies India’s intensifying crypto tax environment and potential shifts in trading behavior among Indian users.

Bybit has announced an 18% GST for Indian users, based on India’s taxation regulations. The tax applies to all transactions, including spot and derivative trading. The decision aligns with India’s stringent crypto tax policies which include a 30% income tax and a 1% TDS on crypto profits. Affected users are encouraged to consider decentralized exchanges as an alternative, sparking discussions within community channels.

India’s existing tax laws create a unique financial burden on crypto traders. Despite Bybit’s compliance-focused approach, users see this as an additional cost that could drive them toward decentralized options. The move could potentially reconfigure trading volumes and workshops impacting liquidity and exchange participation.

Bybit Platform Communication, Official Announcement, Bybit, “Bybit will apply 18% GST to all transfers between users and merchants for Indian residents, effective July 7. GST will be deducted and visible in your transaction history alongside trading fees.” – source

Bybit’s GST move, without parallel in other G20 markets, distinguishes India for its unprecedented tax environment. The financial strain may reroute trade flows, forcing users to adapt or face increased transaction expenses. Reports suggest increased DEX usage as Indian traders grapple with regulatory implications.

Historically, shifts in India’s crypto tax policy, such as last year’s introduction of income and TDS taxes, led to notable migrations to offshore platforms. Projected outcomes include reduced CEX liquidity, increased DEX activities, and strategic tax avoidance maneuvers by Indian traders.