Export of services through PayPal and GST return


I do blogging targeting the US market. Consider a scenario where I raise an invoice to a US client for advertising for $1000 through PayPal. Due to PayPal fees for transfer between accounts, I only receive $947.73 in my PayPal account. Then there is the USD-INR withdrawal charges on the top of that. In the end, the FIRC that PayPal provides me shows $912.18 as the dollar value along with an exchange rate of the day of receiving money in my Indian bank account.

Also, the client name in the FIRC provided by PayPal says PAYPAL PTE LTD,SINGAPORE, not the name of the actual client. 

How should I raise the invoice for GST purposes? What amount to show in the GST invoice?

Also, what amount to show for income tax purpose? Shouldn't both GST and Income tax invoice be the same? Is there any workaround for this scenario?

P.S - I have an LUT since these are exports of services. 

Thank you.

Dear Sir/Madam,


In reference to your query, you are required to raise Invoice for GST Purposes, and the value would be the gross amount charged i.e. $1,000. However since you have an LUT, you are not required to discharge any tax on the same.


The amount to be shown for IT purposes would also be the same, i.e. $1,000.

The deduction made of $87.82 can be claimed as expenses by way of commission charges by Paypal and Forex conversion charges.


Please advise in case of any further clarification.


Thanks & Regards,

CA Aditya Dhanuka.


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