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PayPal, Wise or Payoneer: What GST and FIRC Mean for Indian Freelancers Getting Paid by US Clients

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Editorial team, serviceexportguide.com
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Short answer

Wise issues an e-FIRC for each transfer to an Indian business.19 Payoneer issues a free digital FIRA for each payment.20 PayPal offers a free weekly digital FIRA from February 2026.21 US client work is usually a zero-rated export under IGST section 16.12 From 1 October 2026 each export needs an EDF and payment within nine months.34

Applies toRules involvedPlatforms comparedLast verified
Indian freelancers invoicing US clients in USD1IGST sections 2(6) and 16, LUT, FEMA 2026 Regulations, PA-CB cap2356Skydo, Razorpay, Karbon Business, Payoneer, PayPal, Wise22232425262731 October 20267

1,000 USD = ₹94,243 at the reference rate for 13 November 2026 (European Central Bank data).

Estimated rupees received, on published fees

Sorted by estimated rupees received, highest first. Only providers that publish both their fee and their conversion markup for this currency and method can be estimated.

#Provider and routeBest forFee (+GST)MarkupYou receiveCost
1Karbon BusinessLowest estimated costBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹942plus GST, rate not stated0%₹93,131 to ₹93,3011.00 to 1.18%
2RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,000plus GST, rate not stated0%₹93,063 to ₹93,2431.06 to 1.25%
3WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)Local transfers with a published per-payment fee₹1,4350%₹92,8091.52%
4SkydoPayment link (InstaLinks) paid by ACH debitLocal bank transfers from major markets₹1,885plus GST, rate not stated0%₹92,019 to ₹92,3582.00 to 2.36%
5PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹0no GST stated1 to 4%₹90,473 to ₹93,3011.00 to 4.00%
6PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹4,175no GST stated3 to 4%₹86,465 to ₹87,3667.30 to 8.25%

Not estimated because pricing is not fully published: Cashfree Payments, Dodo Payments, PingPong, Stripe, Tazapay, TransFi, Wise.

Where a provider says GST applies to its fee but not at what rate, the range runs from no GST to 18%, the rate Skydo, Stripe and Winvesta state on their pages. Estimates use each provider's published fee, conversion markup, GST on fees and FIRA charge, checked 2026-10-28, against the reference rate. They exclude charges taken by intermediary banks and your own bank, and the rate a provider actually applies at the time of conversion. Check the provider's pricing page before you choose. The order is calculated only from these published numbers; no provider can pay to change its position, and there are no affiliate links.

PayPal, Wise and Payoneer are the three names Indian freelancers compare most often when a US client asks how to pay. Each one hands you a different proof of receipt, and that document is what your bank, your GST return and your CA work from. This page compares them with the lowest-cost providers on published fees, then explains the GST and FIRA or FIRC rules behind each payment. For the full corridor guide, see how to receive payment from a US client. Your facts decide the answer, so confirm your position with a chartered accountant (CA).

How do PayPal, Wise and Payoneer compare for Indian freelancers paid by US clients?

PayPal, Wise and Payoneer differ most on cost, on the receipt document each issues and on RBI status. The table lists them with the three lowest-cost providers for a USD 5,000 receipt on published fees, ordered by estimated cost, cheapest first, with Wise last because it does not publish an INR conversion percentage.222324252627

PlatformBest forFeeFX markupSettlementFIRARBI PA-CB statusSource
SkydoLocal bank transfers from major marketsUSD 19 plus GST up to USD 2,000; USD 29 plus GST from USD 2,001 to 10,000; 0.3% plus GST above0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)Within 24 hours (product page); T+1 to T+3 business days (terms)Free FIRA on every paymentAuthorised PA-CB I & O (8 January 2026)722303142
RazorpayLocal transfers from the US, UK and eurozone1% plus GST per bank transfer; flat ₹1,000 on transactions below ₹1,00,000Razorpay says 0% markup on bank transfersT+1 for bank transfersForeign Inward Remittance Statement (FIRS) within 24 hours of settlementAuthorised PA-CB I & O (19 December 2023)72332
Karbon BusinessUS bank transfers and marketplace payouts1% transaction fee, listed on its PayPal comparison page0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)24 to 48 hoursFIRA for every transaction from a banking partnerNot on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB7243334
PayoneerMarketplace payouts such as Amazon or UpworkFree to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page); USD 29.95 annual fee if you receive under USD 6,000 in 12 months1% to 4% when converted to INRWithin 24 hours (multi-currency account page); within 48 hours (pricing page)Free digital FIRA for each payment from a partner AD bankIn-principle PA-CB authorisation (22 January 2026); RBI lists it as unable to operate as a PA-CB until authorised1320252935
PayPalClients paying by card or PayPal balance4.40% plus a fixed fee per payment (USD 0.30, EUR 0.35, AUD 0.30, CAD 0.30)PayPal lists 3.0% and 4.00% above its base rateUp to 5 business daysFree weekly digital FIRA from February 2026In-principle PA-CB authorisation; not on RBI's authorised list71321263637
WiseBank transfers to local account detailsDomestic (non-Swift) receipts free (business fee table); 2 USD equivalent per transfer to the INR account (help article); USD 6.11 per USD wire or Swift payment; 18% GST on Wise feesMid-market rate plus a fee that depends on the currency; no INR percentage publishedINR reaches the bank within 1 to 2 days of Wise receiving the paymente-FIRC for each transfer within 3 working daysAuthorised PA-CB-I (12 March 2026)7192738
  • PayPal limit: PayPal's India user agreement lists export payments above USD 10,000 per transaction as a restricted activity.36
  • Wise cards: Indian businesses cannot accept card payments through Wise.39
  • PA-CB cap: A payment aggregator cross-border (PA-CB) transaction is capped at ₹25 lakh, inward or outward.6

The platform cost comparison applies the same tests to every provider.

Which RBI rule governs money from the United States?

Money from a US client for services is governed by the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations), in force from 1 October 2026.3 The same rules apply whichever platform carries the payment.

RuleBest for (who it applies to)Plain meaningSource
EDF, regulations 3 and 4Every service exporterGive an Export Declaration Form to your AD bank within 30 days from the end of the invoice month; non-software exporters may file by the payment date3
Realisation, regulation 5Freelancers with slow-paying clientsCollect within nine months of the invoice, or twelve months for rupee invoices4
Software exportsDevelopers and SaaS freelancersEDF covers software from 1 October 2026; Circular No. 20 supersedes the SOFTEX circulars14
PA-CB cap, paragraph 11(d)Freelancers paid through a PA-CB₹25 lakh per transaction6
Bank charges policy, regulation 19Freelancers paid by wireBanks publish documents, timelines and charges3

Read the EDF guide for how to file each month.

What does each option charge?

Each option charges in a different way: a flat fee, a percentage of the payment, or a conversion fee on the way to INR. The table sets out the published charge for a USD receipt.2223242526272938

PlatformBest forReceiving feeConversion to INRSource
SkydoLocal bank transfers from major marketsUSD 19 or USD 29 plus GST by band; 0.3% plus GST above USD 10,0000% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)22303142
RazorpayLocal transfers from the US, UK and eurozone1% plus GST0% markup on bank transfers, per Razorpay2332
Karbon BusinessUS bank transfers and marketplace payouts1% transaction fee0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)2433
PayoneerMarketplace payouts such as Amazon or UpworkFree to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page)1% to 4%252935
PayPalClients paying by card or PayPal balance4.40% plus USD 0.303.0% or 4.00% above the base rate2636
WiseBank transfers to local account detailsFree for domestic USD (business fee table); 2 USD equivalent per transfer to the INR account (help article); USD 6.11 by wire or SwiftCurrency-dependent fee; no INR percentage published192738

Wise adds 18% GST to its fees, and Skydo and Razorpay quote their fees plus GST.222338

Which option is cheapest at $500, $2,000 and $5,000?

On published fees, the cheapest option changes with invoice size, because flat fees weigh more on small payments and percentage fees weigh more on large ones.222326 The table below works out the INR you receive at today's rate.

PlatformBest forINR on USD 2,000INR on USD 5,000INR on USD 10,000Cost on USD 5,000
SkydoMost INRTransfer to Skydo local account details or international SWIFT accountLocal bank transfers from major markets₹1,86,373₹4,67,991₹9,39,2060.68%
Karbon BusinessBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹1,80,947 to ₹1,86,601₹4,52,367 to ₹4,66,503₹9,04,734 to ₹9,33,0071.00 to 4.00%
PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹1,72,958 to ₹1,74,760₹4,32,436 to ₹4,36,940₹8,64,899 to ₹8,73,9087.27 to 8.23%

Not estimated because pricing for USD is not fully published: Wise.

Ranked by INR received on USD 5,000. Reference rate: European Central Bank data for 13 November 2026. Fees, conversion markup, GST on fees and FIRA charges as published by each provider, checked 28 October 2026. Ranges appear where a provider publishes a range or does not state its GST rate. Intermediary bank charges are excluded. See the methodology.

For example, Skydo's USD 19 fee plus 18% GST is about 4.5% of a $500 invoice, 1.12% of $2,000 and, at USD 29 plus GST, 0.68% of $5,000.22 PayPal's 4.40% plus USD 0.30 is about 4.46% of a $500 payment before its 3.0% or 4.00% conversion fee.26 Razorpay charges a flat ₹1,000 below ₹1,00,000, so its percentage cost on a $500 invoice depends on the exchange rate.23

What documents and GST apply?

A US client payment needs a proof of receipt, an EDF and, for registered freelancers, an LUT, and the invoice is usually zero-rated for GST.235 The place of supply for most remote services is the client's location under IGST section 13(2).15

DocumentBest forWhat it doesSource
FIRA or e-FIRCEvery freelancerShows the foreign payment reached you; Wise, Payoneer and PayPal each issue one192021
e-BRCGST refund claims and recordsSelf-certified on DGFT from the bank's inward remittance data8
LUT (RFD-11)GST-registered freelancersLets you invoice exports without IGST each financial year5
EDFEvery service exporter from 1 October 2026Declares the export to your AD bank3
W-8BENIndividuals with US clientsGiven to the US payer that requests it10
  • Five conditions: Supplier in India, recipient outside India, place of supply outside India, payment in convertible foreign exchange or permitted INR, and not two establishments of one person.1
  • Payoneer purpose code: Set once in Payoneer's profile settings and printed on each FIRA; it cannot be changed for processed payments.20
  • PayPal purpose code: Chosen during account setup and used as the default.40

Compare the documents in FIRC vs FIRA vs e-BRC.

What changes in 2026 for Indian freelancers paid by US clients?

Five changes in 2026 affect Indian freelancers paid by US clients: the 2026 Regulations, the EDF for every service exporter, the nine-month realisation period, the Income-tax Act, 2025 and new RBI authorisations.34716

  • 2026 Regulations: In force from 1 October 2026, replacing the 2015 Regulations.3
  • EDF for services: Every service exporter files an EDF from 1 October 2026.3
  • Realisation: Nine months from the invoice date from 1 October 2026, after a period at 15 months from November 2025.417
  • Income tax: The Income-tax Act, 2025 applies from 1 April 2026, with tax year 2026-27 running to 31 March 2027.16
  • Foreign tax credit: Claimed in Form 44 under rule 76 from tax year 2026-27.18
  • RBI status: Wise Payments India was authorised as a PA-CB-I on 12 March 2026.7

Rules for invoices raised before 1 October 2026 and still unpaid are not set out in the pages above, so ask your bank how it treats them under the 2026 Regulations.3

How did we verify this?

We checked this page against the sources below on 31 October 2026. Provider fees, conversion markups and RBI payment aggregator (PA-CB) status were checked on 28 October 2026. Rupee amounts use European Central Bank reference rates for 13 November 2026. Read our methodology or report an error.

  1. [1]CBIC: IGST Act, 2017, section 2(6) (export of services)
  2. [2]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  3. [3]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB, amended up to 22 September 2026
  4. [4]RBI: Notification No. FEMA 23(R)/(1)/2026-RB dated 22 September 2026, amending regulation 5 (nine months; twelve months for rupee invoices)
  5. [5]GST portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)
  6. [6]RBI: Master Direction on Regulation of Payment Aggregators, 15 September 2025, paragraph 11(d)
  7. [7]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, list as on 30 October 2026 (checked 2026-10-31)
  8. [8]DGFT: e-BRC (self-certification of electronic Bank Realisation Certificates)
  9. [9]CBIC: CGST Rules, 2017, rule 96A, as substituted by Notification No. 12/2024-Central Tax of 10 July 2024
  10. [10]IRS: Instructions for Form W-8BEN
  11. [11]IRS: Instructions for Form W-8BEN-E
  12. [12]IRS: Nonresident aliens, sourcing of income
  13. [13]RBI: Status of applications received under the Payment and Settlement Systems Act, 2007, as on 16 October 2026, Tables D and E (checked 2026-10-28)
  14. [14]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (EDF for software exports; SOFTEX circulars superseded)
  15. [15]CBIC: IGST Act, 2017, section 13 (place of supply where supplier or recipient is outside India)
  16. [16]PIB: Income-tax Act, 2025 comes into force from 1 April 2026
  17. [17]RBI: Notification No. FEMA 23(R)/(7)/2025-RB dated 13 November 2025 (realisation period extended to 15 months)
  18. [18]Income Tax Department: Income-tax Rules, 2026 (notified 20 March 2026), rule 76 and Form 44
  19. [19]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-28)
  20. [20]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  21. [21]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  22. [22]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  23. [23]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  24. [24]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  25. [25]Payoneer India, Payoneer Fees (checked 2026-10-28)
  26. [26]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  27. [27]Wise India, Fees for getting paid (Wise Business receive pricing) (checked 2026-10-28)
  28. [28]Wise Help Centre, How to verify your Indian business to receive payments (checked 2026-10-28)
  29. [29]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  30. [30]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  31. [31]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  32. [32]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  33. [33]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  34. [34]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  35. [35]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  36. [36]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  37. [37]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  38. [38]Wise India site, Wise Business pricing, fees at a glance (checked 2026-10-28)
  39. [39]Wise Help Centre, Getting paid to your Wise Business by card, Apple Pay or Google Pay (checked 2026-10-28)
  40. [40]PayPal India Help, What is the Purpose Code? (checked 2026-10-28)
  41. [41]Notification No. 10/2017-Integrated Tax (exemption from registration for inter-State supplies of services up to ₹20 lakh), GSTZen reproduction
  42. [42]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)

Frequently asked questions

Do Indian freelancers pay GST on payments from US clients?+

Indian freelancers usually charge no GST to a US client, because a service that meets the five conditions of IGST section 2(6) is an export and a zero-rated supply.12 A GST-registered freelancer files an LUT in FORM GST RFD-11 each financial year to invoice without IGST.5 Unregistered freelancers below the threshold do not file one.

Is a PayPal FIRA accepted as proof of export income in India?+

PayPal issues a free weekly digital FIRA from February 2026 and offers custom FIRAs, which it says Citibank issues, for a fee.21 For the e-BRC, the exporter self-certifies on the DGFT portal against the bank's inward remittance data.8 Ask your bank or CA which document they accept for your records.

Does Wise give an e-FIRC to Indian freelancers?+

Wise says it emails an e-FIRC for each transfer to the registered address within 3 working days, and the e-FIRC can be downloaded from the transfer page.19 Wise Business is open to sole traders with a personal PAN and an INR bank account in their own name.28

Can a US client pay me through Payoneer without fees?+

Payoneer's India multi-currency page says receiving USD through local receiving account details is free for customers from India, and its India pricing page lists a fixed fee or 1% for non-local currencies.2925 Payoneer then charges 1% to 4% when the balance is converted to INR and withdrawn, and a USD 29.95 annual fee applies if you receive under USD 6,000 in 12 months.25

Do I need an LUT if I am not GST registered and only have US clients?+

An LUT is filed by a registered person, so an unregistered freelancer has nothing to file.5 A supplier making only inter-State supplies of services with aggregate turnover up to ₹20 lakh is exempt from registration, and export turnover counts toward that figure.41 Confirm your position with a chartered accountant.

What happens if my US client pays after nine months?+

From 1 October 2026 the realisation period for services is nine months from the invoice date, or twelve months for rupee invoices.4 Your AD bank can extend the period under regulation 5.3 Under an LUT, IGST with interest becomes payable if payment is not received within one year or the FEMA period, whichever is later.9

Should a US client fill Form W-8BEN for an Indian freelancer?+

A US client may ask a non-US individual for Form W-8BEN, or an entity for Form W-8BEN-E, and the form goes to the payer rather than the IRS.1011 The IRS treats services performed outside the US as generally foreign-source income for a non-resident alien.12

This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.

Keep reading

Payments

How do you receive payment from a US client in India?

Step by step for Indian freelancers and agencies paid by US clients: ACH vs wire, which providers publish USD account details, W-8BEN, the treaty, EDF and FIRA.

Countries

How Do You Receive Money from the United States to India in 2026?

Every way to receive money from the United States to India: local USD accounts, cards and SWIFT, cost on published fees, INR received, FIRA, treaty withholding and RBI paperwork.

RBI and FEMA

What is the difference between FIRC, FIRA and e-BRC for service exporters?

What FIRC, FIRA and e-BRC are, who issues each, how e-BRC works on the DGFT portal, and which documents Indian service exporters should keep for GST and tax.

GST

How does GST apply to export of services from India?

How GST works when you bill a foreign client from India: the five export conditions, LUT vs IGST refund, records to keep, payment deadlines and mistakes.

RBI and FEMA

How should a freelancer get and use a FIRA?

A freelancer's guide to FIRA in 2026: how to get one from your bank, PayPal or a payment aggregator, what to check on it, how to fix errors and when you need it.