Payment in foreign currency

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709 Points Posted on 25 August 2020
hi, if we paid in foreign currency for the purchase of goods or services so we need to pay RCM on it.
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On 25 August 2020 at 11:47 Report
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This discussion clarifies the application of the Reverse Charge Mechanism (RCM) for payments made in foreign currency for imported goods or services. It confirms that GST is payable under RCM on such imports, alongside any applicable customs duty. Crucially, it also highlights that the Input Tax Credit (ITC) for GST paid under RCM on imports can be claimed.

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Tax and Business Consultant
11616 Points Posted on 25 August 2020
Yes, if it's your import of Goods / services, than you are required to pay GST under RCM along with custom duty, applicable if any.
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On 25 August 2020 at 11:54
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709 Points Posted on 25 August 2020
We pay rcm on import then can we claim RCM refund.
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On 25 August 2020 at 12:04
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Tax and Business Consultant
11616 Points Posted on 25 August 2020
You can claim input tax credit ( ITC ) of GST paid under RCM for/on Import of Goods and Services.
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On 25 August 2020 at 12:21

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