Personal Inward Remittance

[Muralidharan Arumbakkam]

Dear Sir

My son has sent for my maintenance from US in US$ to be credited to his NRE account for my maintenance. It is not a business receipt at all. I used to draw for my personal expenses only. I had not asked for any FIRC also. In the circumstances, whether he should pay CGST and SGST in respect of the remittance. Bankers have debited his account. If you could share the relative notification, I shall take it up with the Bankers immediately.

Muralidharan

[Yash Jain]

Sir,

The bank has charges gst on currency conversation charges duly in accordance with applicable GST provisions.

It is to be charged by them, irrespective of fact whether we receive firc or not.

Rgds

[DR.MARIAPPAN GOVINDARAJAN]

Bank will charge GST on this.

[Ganeshan Kalyani]

GST is payable on the conversation value.

AI Summary

GST on currency conversion: banks may charge tax on conversion charges for personal inward remittances credited to NRE accounts. Banks apply Goods and Services Tax to currency conversion and related service charges imposed when converting and crediting a personal inward remittance to an NRE account; this GST is charged irrespective of the remittance being for personal maintenance and irrespective of whether a FIRC was obtained.