GST on Paypal Fee in India :

India is one of the 2nd largest market for the Freelancers after the United States with over 15 millions people are working in this segment as per the wikipedia. Most of these freelancers are working through some popular freelancer website or some have their clients outside India. About 50%-60% freelancer payments are coming through an international payment gateway i. e  Paypal.

Post GST Implementation: After GST implementation from the 1st July’2017 all the foreign companies are bound to comply with the GST laws of the India.

Until October 31, 2017, all PayPal users in India were contracted with PayPal Pte. Ltd, Singapore, which is outside the purview of GST. Starting November 1, 2017, all users were contracted with the local entity, PayPal Payments Pvt Ltd., India. (CIN : U74990MH2009PTC194653). As a result, GST will be levied on all the users in India at 18% on the PayPal fee only.

GST is calculated at 18% on all types of fees (not purchase amounts) charged by PayPal for its services to all India users. GST will be levied on the fees for all international and domestic transactions for both Business and Individual accounts registered in India.  A consolidated invoice will be shared with you at the end of every month.  Merchants/freelancers may be eligible for refunds or set off the GST charged – please consult your tax advisor for details or can contact @

Can you take the credit of the Paypal GST as input credit ?

Yes if any freelancer are providing the services in India as well as outside India both, you can apply for the GST Registration as proprietorship and take the credit of all the gst which is paid on the paypal fee, hosting, google suite, email marketing, any subscription software fee or content writer service etWe hope you find the article useful, for any further queries and clarification you may contact :

CA Bharat Poplani


Mob : +91-96463-80245