GST on PayPal in India

dextermorgan

[OP]
Regulars
May 12, 2014
6,972
1,236
Hyderabad
paypal is going to charge 18% gst on paypal transaction fees from oct 2017. I wonder if its even feasible for freelancing profitably in india
 

Sushubh

Administrator
Oct 29, 2004
415,658
12,864
Gurugram
They require all online businesses to register for Gst. I assume this would be refunded for Gst registered billers? @vedantlath

Modi further asked taxman to get smaller businesses with less than 20L revenue to register for Gst. Pure tax terrorism in India.
 
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Sushubh

Administrator
Oct 29, 2004
415,658
12,864
Gurugram
unrelated but relevant...

i pay for software updates and hosting in usd. yes bank charges me a conversion fee on this. and they charge gst on that conversion fee.
when i pay in foreign currency through paypal, it gives me two options... i can pay using their conversion rate or i can pay using my bank's conversion rate.
has anyone calculated which is cheaper generally speaking? i also wonder if gst would be applied by paypal on these currency conversion. i am guessing not because the transaction is processed by their international division? 18% gst on conversion charges by bank might push it ahead of paypal's own conversion charges? annoying stuff.