Fiverr Community Forum

Message to PayPal India on GST Registration Number

I am writing this with the hope that someone from PayPal India reads this, or someone from Fiverr informs PayPal India. The PayPal customer support had no clue what I was talking about.

All PayPal users from India have received a message asking them to enter their GSTIN number or the GST registration number.

Please note, Government of India wants us to register for GST only if we have a business income of over Rs. 20 lakhs/year. So if we don’t have a business income of over Rs. 20 lakhs, we don’t have to sign up for GST and we cannot have a GSTIN number.

This means 95% of Indian freelancers or self-employed business owners who use PayPal don’t have a GSTIN number and don’t need to get one as they earn less than Rs. 20 lakhs/year. Please make a note of this. Thank you!

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You think they will read it and will take some action? Seriously? :woman_facepalming:

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Desperate times call for desperate measures :face_with_raised_eyebrow:

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PayPal doesn’t care :man_facepalming:

You can not underestimate the power of information, it can go a long way and reach the PayPal customer service and they might take action on it.

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I do not understand what any confusion is about. There is no confusion in reality.
Paypal has clearly stated that
" If you are registered for GST, it is important that you update your GSTIN details with us at the earliest."
There is an “If” there and that so very obviously means that “if” you are not registered for GST, then Paypal understands that you need not register for GST and hence need not update a GST number.

In other words, as far as Paypal states, those registered with GST, please update your GST Regn Nr and those who do not register their GST Regn Nr, Paypal understands that those people or companies need not register for GST Regn Nr.

It is the same (in India) with all services that issue you an invoice : IF you are registered in GST, please update your GST Regn Nr.

So simple. Where is the confusion ? There is no confusion.

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Paypal DOES care. It is following the respective financial regulations in the respective regions (countries) where it operates or provides it’s financial service(s).

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Hope you are right…

In my PayPal showing Notification - " provide your tax details so you can claim your tax credit points."

after opening this message showing two option, 1> Personal and 2> Account
Under Personal showing GST/UIN
and
Under Account Section showingSpecial Economic Zone Option

My annual turnover below 10 lakh.
What option I need to chose there?
Am I need to register for GST?

I hope this message appears on my all Indian friends account. So what we need to do now?

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I think, Paypal gave a good clarification here: https://www.paypal.com/in/webapps/mpp/ua/upcoming-policies-full

See the second point…

  • We have updated our UA to comply with local laws applicable to Indian companies including local taxation laws. We have been advised PayPal Services will attract a GST rate of 18% (applicable only to the Fees charged by Paypal and not the whole amount you receive or your purchase price). Please consult your tax advisors in terms of your eligibility for refunds.

So the GST requirement is for Paypal to charge 18% from users. This is the rate that shall be levied on Paypal charges not transaction amount and the users have to submit GSTIN if they would like to receive a refund for the same - which probably will amount to few hundred bucks per month.

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Here is the screenshot of Paypal notification
and
the page asking for GST IN / UIN

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Submit your GST number IF you have a GST number.
Traders or anyone with less than INR 20 per annum turnover need not get a GST number and need not update it in Paypal.

Thank you, its a helpful information.

Hi I just joined with paypal today and it says “Please provide your GST registration details to avail input tax credit” what should I do? I just started on fiverr about 3 weeks ago.

Hi… Welcome to the Fiverr community !

I think if you already don’t have a GST number, then you don’t need to provide it in Paypal.

:slight_smile:

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Thanks for the reply I have withdrawn from paypal to my bank account however do I need to pay any Gst? I hope not. Again thanks for the reply i really appreciate it :slight_smile:

As per Paypal:

PayPal will levy Goods and Services Tax (GST). This will be applicable on the PayPal fee to any person or entity in India, regardless whether it is a business or individual account.

  • The GST of 18% will be levied only on the PayPal fee, not the purcahase amount.
  • A copy of the consolidated invoice will be sent to you at the end of every month.
  • If you’re registered in a SEZ, you’re eligible for GST exemption.

You may be eligible for refunds or set off the GST charged. For details, please consult your tax advisor.

So I think, Paypal will deduct 18% for the service they provide. So if you have withdrawn money, that means as a user of Paypal services, you have already paid your GST to Paypal.

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