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  • Category: Finance & Banking

    How much GST is charged for forex transactions in India


    What is the GST charged for forex transactions? What are the GST rates for forex transactions? Our experts will guide you.

    How much GST is charged for forex transactions in India? How is GST calculated in forex? Forex traders are charging GST as per their will. If you want to sell 972 Singapore Dollars at say the rate of 50, The GST rates charged by Forex dealers range from Rs. 120 to 350.
  • #13009
    The status of this response is Pending and require some modification by the author.

    Valuation of GST for purcase and sale of foreign currency, including money exchanging is to be determined by the supplier of service in the following manner:

    - For a currency, when exchanged from, or to, Indian Rupees (INR), the value shall be equal to the difference in the buying rate or the selling rate, as the case may be, and the RBI reference rate for that currency at that time, multiplied by the total units of currency.

    - If neither of the currencies exchanged is Indian Rupee, the value shall be equal to 1% of the lesser of the two amounts the person changing the money would have received by converting any of the two currencies into Indian Rupee on that day at the reference rate provided by RBI.

    - Also at the option of the supplier of services, the value in relation to a supply of foreign currency, including money changing, shall be deemed to be:
    - one per cent. of the gross amount of currency exchanged for an amount up to one lakh rupees, subject to a minimum amount of two hundred and fifty rupees;
    - one thousand rupees and half of a per cent. of the gross amount of currency exchanged for an amount exceeding one lakh rupees and up to ten lakh rupees; and
    - five thousand rupees and one-tenth of a percent of the gross amount of currency exchanged for an amount exceeding ten lakh rupees, subject to maximum amount of sixty thousand rupees.

    - GST rates for forex transactions are as:
    - For amount of money exchanged up to INR 100,000, derived Value on which GST will be charged is 1% of gross amount exchanged, subject to minimum amount of INR 250 and GST on derived Value ( for rate@ 18%* ) is INR 180 ( For exchange amount of INR 1,00,000).

    - For amount of money exchanged from INR 100,001 to INR 10,00,000, derived Value on which GST will be charged is INR 1000 for Exchange amount of INR 1,00,000 plus 0.5% on remaining amount exchanged and GST on derived Value ( for rate@ 18%* ) is INR 990 (For exchange amount of INR 10,00,000).
    - For amount of money exchanged above INR 10,00,000, derived Value on which GST will be charged is INR 5500 for Exchange amount of INR 10,00,000 plus 0.1% on remaining amount exchanged, subject to maximum of INR 60,000 and GST on derived Value ( for rate@ 18%* ) is INR 1170 (For exchange amount of INR 20,00,000).

    * 18% considered for the purposes of numeric understanding only. Applicable rate of CGST / SGST or IGST will be basis the Recipient's GST.
    hope this helps.


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