Bybit has begun applying 18% GST to service and transaction fees to Indian users since July 7, further strengthening the country’s already heavy crypto tax burden.
From today, BYBit will apply an 18% goods and services tax on service and transaction fees to all Indian users, according to an announcement on July 4th. This new GST fee will be deducted directly from the user’s assets across multiple services, including spot and margin transactions, derivative transactions, FIAT-related transactions such as purchasing crypto with bank cards, crypto withdrawals (including in the case of fraudulent deposit collection), staking, and transfers via a Buybit salary. Taxes are calculated based on fees or spreads depending on the transaction type and are displayed in the user’s transaction history.
In addition to implementing GST, BYBIT will discontinue several products for Indian customers starting July 9th. These must be resolved by the user by July 17th. Bybit cards will no longer accept new applications, existing cards will be blocked from new transactions starting July 17th, and will be deactivated afterwards. Various trading bots will also end on July 9th.
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India has already implemented a strict crypto tax system since 2022, including a 30% capital gains tax on each transaction and a 1% TD on each transaction. Recently, the Income Tax Agency has stepped up enforcement and targets users who underestimate crypto income through the “nudge” compliance campaign. Taxpayers are flagged for discrepancies between revenue and data from the exchange. Current rules do not allow cryptographic losses to be offset and deductions are not permitted.
Currently, an additional 18% GST is earning service charges and transaction fees, which further increases the overall tax burden of crypto trading in India, raising concerns about its potential impact on market participation and user sentiment. Over 310,000 active Indian users on Bibit are expected to be affected by this new tax structure.
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