How to calculate GST - Complete Guide with Example

How GST is applicable in forex service.

GST on forex transactions is charged as per the value of the currency exchanges, based on slabs notified by the Government.

From Rs. 1 to Rs. 25,000 = Rs. 45 [is the GST chargeable amount ]
From Rs. 25001 to Rs. 1,00,000 = 0.18% [is the GST chargeable percentage ]
From Rs. 1,00,001 to Rs. 10,00,000 = 0.09% [is the GST chargeable percentage ]
Above Rs. 10,00,000 it is - 0.018% [is the GST chargeable percentage ]

GROSS AMOUNT OF CURRENCY/CARD/TT EXCHANGED	TAX (GST) TO BE CHARGED
Less than or equal to INR 25,000	INR 45 /-
Greater than INR 25,000 and less than or equal to INR 1,00,000	0.18% of Gross amount Exchanged
Greater than INR 1,00,000 and less than or equal to INR 10,00,000	INR 180 + 0.09% of Gross amount Exchanged in Excess of 1,00,000.
Greater than INR 10,00,000	INR 990 + 0.018% of Gross amount Exchanged in Excess of 10,00,000 , Subject to a maximum of INR 10800.

* Any handling charges/delivery charges are separately liable to TAX (GST) at 18%.

If the person [A] has purchased US Dollar $5000. And lets analyse today the rate of US Dollar is Rs. 82.58 . And the calculation on foreign currency value go’s like this.

5000*82.58 = 4,12,900 [will be the INR value]

Transaction Value ( INR)

GST to be charged (INR)

For 1,00,000

180

For amount in excess of 1,00,000 i.e. 3,12,900

281.62

(0.09% of 3,12,900)

Total GST to be charged

461.62

If the person [A] has purchased US Dollar $12,000. And lets analyse today the rate of US Dollar is Rs. 88.35.

And the calculation on foreign currency value goes like this.

12000*88.35 = 13,25,250 [will be the INR value]
As per the tax slab (table) , When a transaction value is more than 10,00,000 GST will be calculated as below

Transaction Value (INR)

GST to be charged (INR)

For 10,00,000

990

For amount in excess of 10,00,000 i.e. 3,25,250

58.54

(0.018% of 3,25,250)

Total GST to be charged

1048.54