Update GSTIN Details With PayPal

Freelancers and Service Providers receiving payments from clients outside India through PayPal have been asked to submit their GSTIN details. This is not mandatory for all PayPal users. However, if you have a GSTIN number, you can furnish it to PayPal and your business will receive the input tax credit of GST charged by PayPal.

Many businesses and individuals receiving payments through PayPal have this doubt whether obtaining GSTIN is mandatory or not?

Freelancers and small businesses are not required to obtain GSTIN unless their business turnover exceeds INR 20 lakhs. However, in certain cases, you might be required to obtain GSTIN, such as in cases when you are supplying to a business registered under GST and request GST invoice from freelancers.

Will GST be levied on Entire Transaction Amount or Only PayPal Fees?

GST will only be levied on the PayPal fee, not on the entire transaction amount.

Example. If you are getting USD 100, PayPal fee is USD 3, GST will be levied on $3 only i.e on 18% of $3, That’s 0.54

GST on PayPalGSTIN Details

Register your business under GST, Click Here to know more.

Read FIRC Policy of PayPal.

Write your GST queries directly to us at [email protected] and get a quick response from our GST Experts.