Foreign bank charges

Gurumurthi Ramnathan (B.Com) (49 Points)

17 April 2025  
the clarification on the applicability of Gst under RCM for foreign bank charges

example: Mr A an axis Bank customer, export to Mr B in the USA a Citibank customer. Mr A raised an export invoice for Usd 25000/- and requested axis Bank to handle the realisation of the invoice amount. we received Usd 24950. the deduction is 10USd : forex charges by axis Bank which charged GST
USD 40 : charges for remittance services by the corresponding bank / intermediary bank

1. what is the GST impact. on the foreign bank charges for USD 40