TaxTMI 
TaxTMI 
In case of supply to customer outside India by XYZ, if invoice value is 100$, the foreign bank is transferring to XYZ,India's bank in India only 98$ after deducting their bank charges of 2$. Is XYZ required to pay GST under reverse charge on the bank charges deducted by the foreign bank?
GST on foreign bank charges
15 May 2019 
1 Reply 
2599 Views Asked by
GST reverse charge on foreign bank charges depends on whether the supplier or the customer bears the bank fee.
GST reverse charge applicability for foreign bank charges deducted from export remittances depends on whether those charges are a cost borne by the supplier or are borne by the customer; the query asks if GST under reverse charge is payable on such bank charges and the reply identifies the allocation of cost as determinative. (AI Summary)
GST reverse charge applicability for foreign bank charges deducted from export remittances depends on whether those charges are a cost borne by the supplier or are borne by the customer; the query asks if GST under reverse charge is payable on such bank charges and the reply identifies the allocation of cost as determinative. (AI Summary)
