On July 7, 2025, Indian Bybit users will be subjected to a new 18% Goods and Services Tax (GST) on all trading and service fees.
Overview of Tax Changes
This new measure applies to traders in India and adds an 18% GST on top of the existing 30% tax on cryptocurrency profits and 1% Tax Deducted at Source (TDS). These changes will significantly increase the overall trading costs for users.
Details of the Tax Structure
The current tax framework now includes:
* 30% tax on profits from cryptocurrency trades. * 1% TDS on every transaction, regardless of profit or loss. * 18% GST applied to trading, withdrawal, and other service fees.
These taxes considerably reduce traders' net profits, making tax planning essential.
Recommendations for Traders
Traders should consider the following aspects:
1. Recalculate break-even points to include GST in trading cost estimates. 2. Revise trading strategies, focusing on higher-volume or longer-term trades to offset the tax burden. 3. Explore alternative exchanges that may offer lower fees or promotional support for Indian users. 4. Conduct thorough tax planning, keeping accurate records and consulting tax advisors.
With the introduction of the 18% GST on trading fees from July 7, Indian cryptocurrency traders need to adapt their strategies and financial planning to minimize the impact of the new taxes on their profits.
