Why payoneer not charging GST on his services | GST on Payoneer Commission |

Meaning of Payment Gateway like Paypal or Payoneer

A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payment processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar.The payment gateway may be provided by a bank to its customers, but can be provided by a specialised financial service provider as a separate service, such as a payment service provider.

Most popular payment gateways for e-commerce exporter in India are PayPal & Payoneer

Let's understand, Why payoneer not charging gst on his services

The PayPal commission falls under NCM as PayPal charge GST on its service fees on monthly basis because it has permanent establishment in India.Thus exporter can take ITC on PayPal as reflected in his GSTR 2A

On other hand, the Payoneer charges falls under RCM as Payoneer does not charge GST on its service fees because it has not a permanent establishment in India. Thus exporter need to pay gst under RCM on payoneer service charges and take ITC as same manner as unregistered GTA services.