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Gst on payments received via paypal for online services?

Varun Mishra (Director CS Final B.com ) (22 Points)

10 June 2017

Hi, If an Indian Software and Web Services Company, which provides Web Development & Software Services to Different Counties Online and have no clients in india, receives payments through Paypal.

Then How much GST, the said company, will have to pay on the services provided to International Clients (Who are Out of Taxable Territory)

Thank You in Advance.

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15 Replies

Preeti (Team_GSTSoln) (Team GST Experts) (1926 Points)
Replied 11 June 2017

in this case pos is outside india. it is an export of service thus exempt

Harshit (Director) (28 Points)
Replied 30 June 2017

Mam, I have same case, I provide data entry and social media management services to foriegn clients and receive money in USD through PayPal. My annual turnover is less than 10 lac. My firm was registered in service tax previously, Should i need to migrate it to GST? Or should I surrender my service tax number?

Please clear my doubt.

TIA

Preeti (Team_GSTSoln) (Team GST Experts) (1926 Points)
Replied 30 June 2017

HARSHIT U HAVE TO MANDATORILY MIGRATE TO MAKE ANY INTER STATE SUPPLY

Harshit (Director) (28 Points)
Replied 30 June 2017

Thanks for your reply mam, but I am prviding services out of India, so please guide me in this case.

savdi (student) (58 Points)
Replied 04 July 2017

Export of services outside India is deemed as Inter state supply and covered under IGST. So you will need to compulsarily register for GST even if your turnover is less than 20 Lakhs. But export of services is exmpt and you can claim refund for the tax or provide services under bond or letter of undertaking without paying tax.

M Agarwal (Consultant) (228 Points)
Replied 09 July 2017

the payment for such service has been received by the supplier of service in convertible foreign exchange;

What about this clause. Does PayPal payment fit this?

1 Like

Mohit kumar (Developer) (36 Points)
Replied 10 July 2017

I fit into same condition where I receive payments from Paypal in foreign exchange for the goods exported and converted to inr while while settling into my bank account. Now is IGST applicable on such payments received? and what would be the rate as I see that export comes under zero-rated supply.

Weblizar WordPress Premium The (2 Points)
Replied 19 August 2017

Same case , IT Agency here (Startup ) What if the export exceeds than 20 Lakhs ? will I need to pay 18% on every month's sale ?

M Agarwal (Consultant) (228 Points)
Replied 20 August 2017

In case of exports, which is an inter-state supply. There is no such excemption limit of 20lakhs. GST needs to be submitted for every rupee earned. So even if you make Rs. 1000 in a year using exports, you need to register and submit GST

Gia Sen (2 Points)
Replied 03 September 2017

Paypal have notified everyone for GST. I'm an individual content developer and strategist, who sometimes get foreign projects. So, the foreign exchange payment it neither regular nor huge. Do I have to get a GST number too?? This is seriously insane.

M Agarwal (Consultant) (228 Points)
Replied 04 September 2017

Service export are treated as inter-stat which comes under compulsory registration.

Manohar Lal Agarwal (In Practice) (34 Points)
Replied 13 November 2017

Hi,

Exemption from payment of tax on export of service is subject to the condition that the consideration is received in foreign exchange directly in the account of the service provider and proof of such receipt is FIRC issued by Bank. For export the FRC i.e., foreign currency realisation certificate is required.

Hence would you please suggest whether the payment received through paypal or freelancer will come under this category or not? if not then why the gst will not be levied on bill raised through paypal or freelancer for export of services.

Thanks