Latest Updates In Ethereum And Bitcoin – Bybit’s implementation of an 18% Goods and Services Tax (GST) on Bitcoin trading and service fees, effective July 7, 2025, has sparked outrage among India’s crypto community, as announced on X by Bybit on July 6. Combined with India’s existing 30% tax on crypto profits and 1% TDS, introduced in the 2022 Union Budget, the GST significantly raises costs for Bitcoin traders on platforms like CoinDCX and WazirX, which may follow suit.
India’s 19 million crypto users, ranking first in global adoption, face a cumulative tax burden that reduces net returns, with a ₹1 lakh Bitcoin profit now incurring ₹30,000 in capital gains, 1% TDS, and up to 18% GST on fees.
Many crypto users reflected frustration, with traders urging tax relief in the 2025 Budget. The high taxes risk driving activity to unregistered platforms, undermining compliance efforts.
Bitcoin’s rally to $112,288 on July 10, driven by global ETF inflows and rate cut expectations, has heightened trading activity, per UNN.
However, the GST adds pressure on retail investors, who dominate 25% of India’s spot trading volume.
The Finance Ministry’s upcoming discussion paper could address taxation, with stakeholders like Mudrex advocating for lower rates to boost participation.
Bybit’s move aligns with India’s push to integrate crypto into the formal economy, but it risks alienating retail traders. A balanced tax policy is essential to sustain India’s crypto leadership while ensuring compliance.
