GST On FOREIGN REMITTANCE CHARGES RECEIVED

[Kaushik Wadher]

Dear Sir

I have a query is GST applicable on the foreign remittance charges received (on recruitement services offered to overseas client in India and what is the % of GST and how to calculate the amount )

Kind Regards

[PAWAN KUMAR]

Dear sir,

As per my view

1.service provider located in jndia.

2.service receiver located outside India

3.services performed outside India place of supply

4.payment received in foreign currency

It is export of service and GST is not payable since export can be made under LUT. You may take 18 percentage rate of GST if you are making GST payment but later you will have to file refund.

[KASTURI SETHI]

Dear Querist,

You have received foreign remittance charges on account of recruitment services provided to overseas client in India.So you are covered under Section 13(2) of IGST Act, 2017. GST is payable @18%.

AI Summary

Export of service: charges may be zero-rated under LUT, though an alternative view treats them as taxable under IGST.
Whether GST applies to foreign remittance charges for recruitment services hinges on supply characterisation: if provider is in India, recipient outside India, services performed outside India and payment in foreign currency, the transaction is treated as export of service and may be zero-rated under LUT (with GST optional and refundable if paid); alternatively, the charges may be taxable under the IGST place of supply rules, attracting the standard GST rate and requiring tax payment.