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Is Paypal GST paid before registration eligible for refund - For Export IT service

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ShanS

student

37 Points Joined November 2009

Export IT service-Is paypal gst paid for 6 months before gst registration eligible for refund or input credit?

if so should it be claimed as input credit or can get refund.

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8827 Points Joined December 2011

GST Registration and Payment: - *GST Registration*: You registered for GST after 6 months of making PayPal payments for export IT services. -

*PayPal Payments*: PayPal payments were made for 6 months before GST registration.

GST Paid on PayPal Payments: - *GST Paid*: GST was paid on PayPal payments, but the GST registration was obtained later.

Eligibility for Refund or Input Credit: - *Section 16(2)(b)*: As per Section 16(2)(b) of the CGST Act, 2017, input tax credit can be claimed for invoices or debit notes received within 30 days from the date of issuance of the invoice or debit note.

*Section 18(1)(a)*: Section 18(1)(a) of the CGST Act, 2017, allows for the claim of input tax credit for taxes paid before GST registration, provided the goods or services were used for business purposes.

Refund or Input Credit: - *Input Credit*: You can claim input tax credit for the GST paid on PayPal payments, as it relates to export IT services. - *Refund*: Since you're eligible for input tax credit, you can't claim a refund for the GST paid. Claiming Input Credit: -

*GST Return*: Claim the input tax credit in your GST return (GSTR-3B) for the relevant period. - *GST Invoice*: Ensure you have the GST invoice or debit note from PayPal to support the input tax credit claim.

Key Considerations: - *Documentation*: Maintain proper documentation, including PayPal invoices, GST registration certificate, and GST returns. - *GST Compliance*: Ensure compliance with GST regulations and timelines for claiming input tax credit.

Recommendation: 1. *Claim Input Tax Credit*: Claim input tax credit for the GST paid on PayPal payments in your GST return (GSTR-3B).

2. *Maintain Documentation*: Keep proper documentation, including PayPal invoices and GST returns, to support the input tax credit claim.

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