Petition update

18% GST ON 'Paypal Services'

Cyril Gupta
Noida, India

Aug 31, 2017 — Paypal users in India got an update (https://www.paypal.com/in/webapps/mpp/ua/upcoming-policies-full) today telling everybody that Paypal is going to update their user's agreement with some fresh changes. There was also some important info.

#1 Paypal is going to form an Indian company and our agreement will be updated to be with that company.

#2 Paypal will charge 18% GST on 'Paypal services'

Here's what it can mean for you today.

Firstly, you'll be paid by Paypal India, and not Paypal US now. This means that Paypal may be able to start an India-India payment service if they do confirm to RBI's requirements.

Also, the GST charges on 'Paypal Service' may NOT mean the entire amount coming to you. It might mean only on the fee applied by Paypal, but we don't know for sure yet. The choice of wording was very poor.

If it's on the entire amount, it's going to be even more important for you to get FIRCs so that you can claim refund. It really makes things very confusing. But it sounds so stupid, that it's UNLIKELY.

IMPORTANT : Paypal is going to form a company in India. They won't be doing it if they didn't want more of Indian business. They won't be doing it to make things more difficult for us. If they open a company here and make things more difficult, they will get less profit.

So there's a pretty good chance that Paypal may seek a Payments bank or a banking license and bring you more Paypal features in future.

I am being optimistic here, because nothing is 100% certain.

Now's the time to seek clarity even more. Try calling up Paypal India support at : https://www.paypal.com/in/smarthelp/contact-us

Call them up, ask them for clarity. If you get some clear info, please post it here.

We've already got 500+ signatures so far. Keep this going, spread this info to as many people you know will be affected. It's time to solve this problem.


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