We have some new news for the Indian paypal users. From October 2nd 2017 onwards, all PayPal Services will attract a GST rate of 18%. Please consult your tax advisors in terms of your eligibility for refunds. So whatever you earn, your payment will be deducted by 18 percent. However, you can reclaim it by showing export of software services and filing SOFTEX form.
You can get in touch with PayPal Payments Private Limited, a company incorporated in India with CIN U74990MH2009PTC194653. PayPal knows India is an important market for them and they are making changes according the new GST laws that replace other taxes.
A lot of Indian freelance users did not file for income tax returns and it appears that government had no choice but to impose GST. Fortunately, you can easily reclaim your GST by filing SOFTEX [pdf] form. Please get in touch with the SOFTEX department.
Effective date: 2 October 2017 for Users who contract with PayPal Payments Private Limited. The actual effective date of the UA change will be notified latter after 30 days of the days of notice. If you don’t want to use PayPal, you have the option closing your account within 30 days of the date of the notice.