India’s Crypto Tax Shock: How the New 18% GST Will Shake Up Traders in 2025

Brace for impact—India’s tax hammer just dropped on crypto. The new 18% GST slams traders, turning quick flips into costly maneuvers. Here’s the breakdown.

The GST Gut Punch

No more tax-free playground. Every trade now carries an 18% levy—whether you’re swapping BTC for ETH or cashing out to rupees. The government’s message? Crypto isn’t escaping the taxman’s grip.

Traders’ New Math

Arbitrage strategies just got harder. That 2% spread? Now a loss after taxes. DeFi degens face tighter margins, while institutional players shrug—they’ve been paying this for years.

The Silver Lining (If You Squint)

Clarity beats uncertainty. At least now traders know the rules—unlike those poor NFT ‘art collectors’ still waiting for classification. Bonus cynicism: Nothing unites Indians like creative tax avoidance—watch the stablecoin loopholes emerge by Diwali.

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

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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

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.

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.