Foreign bank charges, Goods and Services Tax - GST

[Kaustubh Karandikar]

XYZ exporting goods and the amount paid by the foreign customer is through a foreign bank. The foreign bank while transferring the amount to Indian Bank of XYZ, is deducting certain bank charges in foreign currency. Is XYZ required to pay GST on it under RCM. In my view this being a services supplied by banking company, will fall under Section 13(8)(1) and as per that since place of supply is the location of the supplier of service which in this case is outside India, no RCM is payable. Kindly confirm.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

No gst is payable on charges payable to a foreign bank.