Rahul Bist asked 4 years ago
Confusion in filing GST return for exporter of service
Hello Everyone,
I am an exporter of services ( a web developer). I export my services to foreign clients and get income in Dollars through PayPal.
Paypal issues me invoice monthly a sample is given below:
This invoice is for the services of PayPal to me and it is paying IGST for it to Govt.
So, the question is, this invoice is for PayPal services and it nothing to do with my export services, correct?
So, I need to fill GSTR 3b with payment at 18% of monthly earning? or what PayPal paid is enough and I have to file nil return?
thanks
Answer the question
ConsultEase Administrator answered 4 years ago
There must be some confusion. What Paypal should have been paid is GST on their charges for collection of payment. But on the export transactions, you still need to pay GST. You have another option in case of export of services, You can apply for a LUT and can export the services without payment of Tax. The tax paid by Paypal or even by you, if they bill it from outside India can be claimed as an input tax credit.
please check the image if not viewed above on https://imgur.com/fTP7glD
This is an Input service used in order to complete export of service. Treatment of tax paid will depend upon the facts of the case.
thanks for your reply. I calculated, paypal is charging 8% of the amount I transfer through them + 18% GST on that amount.
Suppose, I used paypal for transferring Rs 5,000. paypal is charging around Rs 400 at 8% for this service. In addition, it is charging Rs 72 (18% of Rs 400). so total paypal is charging Rs 472 from me. I am getting invoice from paypal for it.
Now, I want to know that should I pay tax on Rs 5,000( if it is my income in a month from foreign client) and pay Rs 900 at 18% in GSTR 3B?
please advice.
thanks