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

The post Crypto Tax India: Here’s What the New 18% GST Means for Traders appeared first on Coinpedia Fintech News 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. Attention Indian #Crypto Traders: MASSIVE TAX CHANGES INCOMING! Starting July 7, 2025, 18% GST will be added on top of the existing 30% tax and 1% TDS Here’s what it means for YOU A thread pic.twitter.com/MidvVnhPAc — Keyur Rohit (@CryptoKingKeyur) July 5, 2025 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. [post_titles_links postid=”479052″] 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. [article_inside_subscriber_shortcode title=”Never Miss a Beat in the Crypto World!” description=”Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.” category_name=”News” category_id=”6″] 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.

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