Hello,
I am into Web development and providing services to clients around the globe.
If I have a client from India, I can understand GST has to be paid.
For Export, broadly, no GST is applicable. Export of services is defined as :
(6) “export of services” means the supply of any service when,––
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and
(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;
Source : https://gstcouncil.gov.in/sites/default/files/IGST.pdf (Page: 52)
Now, my question is:
Will there be any GST applicable, if I get paid through Paypal? If yes, this will be limited to % of fee charged by Paypal. Please confirm.
Hypothical example:
Invoice amount: $100 (Rs 6000)
Paypal Fee: $4 (Rs 240)
Amount deposited in bank: Rs 5400
Paypal will accept payment for us in US Dollars (USD) and will deposit to our bank in Indian Rupees(INR)
I understand the direct deposit to my account does not attract GST.
Thanks in advance.
CAclubindia
