Input tax Credit on GST for Foreign Inward Remittance

[Asked by 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 and SUN]

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

Input tax credit on bank charges for export proceeds allowed where banking services are in furtherance of business.
Whether Input Tax Credit is available on GST charged by banks on fees for foreign inward remittances for exported services. Contributors agree ITC is available because banking charges for handling export proceeds are services in the course and furtherance of business and are not specifically excluded under the provision referenced in the discussion.