The American payments portal PayPal has started imposing GST charges on its services from 1st November 2017 onwards as per the rules and regulations of GST in India.
It was stated that primarily all the paypal users in India should be update their GSTIN details on the website.
PayPal will issue tax invoices on the basis of the GST registration details submitted by the customers. The users will also get the benefit to claim input tax credit by providing correct GSTIN details.
Paypal decided to charge 18 percent of tax on their services which is only applicable to the fees charged by the payment gateway, and not the entire amount of purchase price.
Post GST-rollout, financial and banking services in India such as ATM, Debit card , fund transfer etc charges a higher tax of 18 percent instead of the early 15 percent.
