What is GST and how does it apply to PayPal services in India? What if I’m in a Special Economy Zone?
Goods and Services Tax (GST) is a comprehensive indirect tax on all transaction of goods and services throughout India. It’s 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.
For detailed information regarding GST, please visit our comprehensive Q&A.
Users based in Special Economy Zone
If you’re registered in a Special Economy Zone unit, please contact us to declare your status.
To declare your status:
- Go to Contact Us.
- Select Business Solutions.
- Select Special Economy Zone (SEZ) Client Classification.
- Click Email us.
- Enter your GST Identification Number (GSTIN) and indicate you’re registered in a Special Economy Zone.
- Click Send Email.
By emailing us, you agree to be bound by PayPal’s User Agreement (section 11.12) for your authorised operation in the said Special Economy Zone unit, as prescribed under the GST legislation.
Why is GST applicable now?
Until October 31, 2017, all PayPal users in India are contracted with PayPal Pte. Ltd, Singapore, which is outside the purview of GST. Starting November 1, 2017, all users will be contracted with our local entity, PayPal Payments Pvt Ltd., India. As a result, GST will be levied on all our users in India at 18% on the PayPal fee only.