RCM ON FOREIGN BANK CHARGES - Goods and Services Tax - GST

Dear Expert - Observation raised by GST Officer During The Audit My Client is exporter, Importer Local Trader Observation : NON-PAYMENT OF RCM ON FOREIGN BANK CHARGES: During the course of Audit, I.t i s seen that foreign bank have deducted the bank charges against receipt of`foreign currency. The banks are deducting charges for remittance of money. The locati.on of tlie suppli.er I e. Bank is ouitside lndi.a and location of the recipient is in liidia (taxable territory). from the data pi`ovi.ded. it is `eeii tliat a certain amount of charges are shown as sliort receipt whi cli are actuall} the Ballk Charges of the foreign Bank. The Servlce provided by foreign bank for remlttalice ot` expoi.t proceeds is liable to GST as per Notification No. 10/2017-Integrated Tax (Rate), dated 27.06 2017, which stipiilates that any service supplied by any person who is located in a non-taxable territory to any person located in a non-taxable territory, the person located in the taxable territory will be paid on reverse charge basis by the recipient of such services---------------- is it RCM Applicable Please Guide