We have registered with a payment gateway called PAYU. From this portal we send payment links to our customers, who then make payments to PAYU portal through Net Banking/ Cards. When PAYU disburses the payment to us, they deduct their Charges + GST. My Query is
1) Can we get ITC for the above ?
2) PAYU does not give us any monthly tax invoice for their service charges, they just give us reports for each transaction, where the received amount, their fees and GST is shown. So how to get ITC wihout Invoice.?
Please advice
Yes you are eligible for input credit.
Just, remember under GST you can take input of every expense incurred to run your business. (Except few such as food expenses, membership etc.)
You need to provide your GST number to PAYU they will upload in their GST return and you will get credit.
Not only PAYU even banks, Amazon etc. are asking for GST number.
If you have not given GST number then you will not get automated credit.
We have slightly different system in place. When customer clicks our payment link, the Payment gateway adds up its fees in our invoice value. The payment gateway (say Instamojo) then deducts its fees part and reimburses our invoice value to our Bank account. Can we claim ITC on the fees directly collected by the payement gatway from the customers?
Update on the Query.
PAYU is now issuing Monthly invoices for their service charges, our GSTIN is mentioned in the Invoice. Also, PAYU uploads the invoices to the GSTR portal, and we are able to get ITC for the GST. Thanks for the support
JOIN LARGEST DISCUSSION PLATFORM
Sign up to discuss taxation, accounting and finance topics with experts from all over India.
Join Discussion
