Input tax Credit on GST for Foreign Inward Remittance

[Guest]

Dear Sir,

We provide Export of Services as well we provide domestic Services. We receive proceeds in foreign currency for exports. Banker charge Bank charges and also GST @ 18%. Can we take input credit on the same.

[Alkesh Jani]

Sir, In my point of view, banking services are in course and also for furtherance of business, as, the same is not specifically restricted under Section 17(5) of CGST Act,2017, therefore, ITC is available.

Our experts may correct me if mistaken

Thanks

[Rajagopalan Ranganathan]

Sir,

You are eligible to avail ITC of gst paid by the bank.

[YAGAY andSUN]

Since such deductions by the banks are related to your export business and in furtherance of Business therefore in our view also you are eligible for ITC on such charges.

[Ganeshan Kalyani]

Input tax credit is eligible.

AI Summary

Businesses Can Claim ITC on GST for Bank Charges on Foreign Inward Remittances, Not Restricted by Section 17(5) CGST Act A business providing both export and domestic services inquired about the eligibility for input tax credit (ITC) on GST charged by banks for foreign inward remittance. Four participants responded, agreeing that ITC is available for these banking charges. They reasoned that such services are in the course and furtherance of business and are not specifically restricted under Section 17(5) of the CGST Act, 2017. The consensus was that the business is eligible to claim ITC on the GST paid for bank charges related to foreign currency proceeds.