Is GST Payable on Payment Gateway, Platform and Bank Charges in India?

Author:: Manoj Sharma
Verified by:: Editorial team
Published:: 8 Oct 2026
Last modified:: 8 Oct 2026

Short answer

Yes, GST is payable on payment gateway, platform and bank charges in India, even when the payment you receive is an export. An Indian bank or gateway adds GST to its fee on the invoice. A fee charged by a supplier outside India is an import of services, so a registered recipient pays GST on it under reverse charge.

Key facts
Applies to	Governed by	Deadline	Penalty	Last verified
Freelancers, agencies and exporters in India who pay fees to a bank, payment gateway or payment platform for receiving or converting foreign payments	IGST Act, 2017 sections 5(3), 12(12), 13(2) and 13(8)(a); CGST Act, 2017 sections 16, 24 and 31(3)(f); CGST Rule 32(2); Notifications 8/2017, 9/2017 and 10/2017-Integrated Tax (Rate) and 11/2017-Central Tax (Rate)	Reverse charge tax is paid with the GSTR-3B for the month the fee is charged. Input tax credit must be taken by 30 November after the end of the financial year, or the annual return date if earlier (CGST Act section 16(4))	Unpaid reverse charge tax attracts interest at the notified rate, capped at 18% a year (CGST Act section 50(1)), and credit is lost if it is not claimed in time	8 Oct 2026

What is GST on payment gateway and bank charges?

GST on payment gateway and bank charges is the tax on the fees a bank, gateway or payment platform charges you, separate from the export payment itself. Your export of services can be zero-rated (IGST Act section 16(1)), yet the fee you pay is a service supplied to you in India and is usually taxed at 18%.

Forward charge: When an Indian bank or gateway charges you, it adds GST to its own invoice. For services between an Indian supplier and an Indian recipient, the place of supply of banking and other financial services is the recipient's location on the supplier's records (IGST Act section 12(12)).
Reverse charge: When a supplier located outside India charges a fee, the recipient in India pays integrated tax instead of the supplier (Notification 10/2017-Integrated Tax (Rate), entry 1). The legal power for this comes from IGST Act section 5(3).
Rate: Financial and related services under heading 9971 that are not listed separately carry 18% IGST (Notification 8/2017-Integrated Tax (Rate), serial 15), which is 9% CGST plus 9% SGST on an intra-state supply (Notification 11/2017-Central Tax (Rate), serial 15).
Currency conversion: Buying or selling foreign currency is itself a taxable service, and the taxable value is the conversion margin or a deemed slab, worked out under CGST Rule 32(2).
Credit: A registered person can take input tax credit on services used in business (CGST Act section 16(1)), and credit is allowed for zero-rated supplies such as exports (IGST Act section 16(2)).

For most registered exporters the GST on fees is a cash-flow cost that comes back as credit or a refund. For unregistered freelancers it is a real cost added to each fee. The export side of the transaction is covered in GST on export of services.

Who pays GST on payment gateway and bank charges?

Everyone who pays a fee to an Indian bank or gateway pays the GST added to it, registered or not. Reverse charge on fees from a foreign supplier falls on any person in India other than a non-taxable online recipient (Notification 10/2017-Integrated Tax (Rate)), and services used for business are outside the personal-use exemption (Notification 9/2017-Integrated Tax (Rate), entry 10).

Who pays GST on payment gateway and bank charges?
Recipient type	Pays GST on Indian fees	Reverse charge on foreign fees	Best for
Registered exporter (company, LLP, proprietor)	Yes, added on the supplier's invoice	Yes, pays IGST and can claim it back as credit	Businesses filing monthly or quarterly GST returns
Unregistered freelancer using the service for work	Yes, added on the invoice with no credit	The notification covers any person in the taxable territory, and persons liable to reverse charge must register ({L('CGST Act section 24(iii)',CS24)}); take advice on your case	Freelancers below the {L('section 22',CS22)} turnover threshold
Individual using a service for personal purposes	Yes, added on the invoice	Exempt when the service is received for a purpose other than business or profession ({L('Notification 9/2017-Integrated Tax (Rate), entry 10(a)',N9)})	Personal transfers and personal accounts
Recipient using an Indian entity of a global platform	Yes, the Indian entity adds GST on its invoice	No, because the supplier is located in India	Users billed by an India-registered platform entity

How do you work out GST on payment gateway and bank charges?

You work out GST on payment gateway and bank charges by finding who supplied the service, where that supplier is located and whether you are registered. These three facts decide whether GST appears on the invoice or whether you pay it yourself under reverse charge.

List every fee on the remittance: the inward remittance fee, gateway or platform fee, currency conversion margin and any flat payout fee.
Check the invoice or statement for each fee to see the supplier's name, GSTIN and location.
If the supplier is in India and shows a GSTIN, GST is already charged. Give the supplier your GSTIN so the invoice reaches your returns, since credit depends on the supplier reporting it (CGST Act section 16(2)(aa)).
If the supplier is outside India, check whether the place of supply is India. For most services it is the recipient's location (IGST Act section 13(2)), which makes the fee an import of services.
For an imported service, issue a self-invoice (CGST Act section 31(3)(f)) and a payment voucher (section 31(3)(g)), then report and pay the IGST in your GSTR-3B.
Pay reverse charge tax in cash. The electronic credit ledger can only be used for output tax (CGST Act section 49(4)), and output tax excludes reverse charge tax (section 2(82)).
Claim the reverse charge tax as input tax credit, since input tax includes tax paid under IGST section 5(3) (CGST Act section 2(62)).

Does a foreign payment platform's fee count as an import of services?

A foreign payment platform's fee usually counts as an import of services when the platform is located outside India and you are in India. The general rule puts the place of supply at the recipient's location (IGST Act section 13(2)). One exception covers services by a banking company, financial institution or non-banking financial company to account holders, where the place of supply is the supplier's location (section 13(8)(a)).

The exception defines an account as one bearing interest to the depositor, including NRE and NRO accounts.
A non-interest wallet or payout balance held with a foreign platform may fall outside that definition.
Whether a given platform fits the exception depends on its legal status, so check with a GST practitioner.

How do Indian banks show GST on remittance and conversion charges?

Indian banks usually show GST on remittance and conversion charges in a consolidated tax invoice or statement. Banking companies and financial institutions may issue a consolidated tax invoice, or another document in lieu of it, for a month's services at the end of that month (CGST Rule 54(2)). Ask your bank for this invoice with your GSTIN on it.

Look for the bank's GSTIN, your GSTIN, the taxable value and the tax amount.
Match the invoice with the credit shown to you in your GST returns before claiming it.

Is GST charged on the currency conversion when export proceeds are converted to rupees?

Yes, GST is charged on the currency conversion when a bank converts export proceeds to rupees, because purchase or sale of foreign currency is a supply of service. The taxable value is the difference between the bank's rate and the reference rate, multiplied by the units, or a deemed slab value if the bank chooses that method for the financial year (CGST Rule 32(2)).

GST is charged on the margin or deemed value only, and the full converted amount stays outside the taxable value.
The bank picks one method for the whole financial year and cannot switch midway.

What GST rates and documents apply to payment gateway and bank charges?

Fees for financial and related services carry GST at 18% unless a specific entry applies (Notification 8/2017-Integrated Tax (Rate)). The 2025 rate changes amended a different item under heading 9971 and left this residual entry alone (Notification 15/2025-Central Tax (Rate)). The document you need depends on who charges the fee.

What GST rates and documents apply to payment gateway and bank charges?
Charge	Who pays the GST	Document to keep	Best for
Inward remittance or SWIFT handling fee by an Indian bank	Bank charges GST on its invoice	Bank's consolidated tax invoice or statement with GSTIN	Exporters receiving wire transfers into an Indian bank
Currency conversion by an Indian bank	Bank charges GST on the {L('Rule 32(2)',R32)} value	Bank's tax invoice or advice showing the GST	Anyone converting foreign currency to rupees
Gateway or platform fee from an Indian entity	Supplier charges GST on its invoice	Tax invoice with both GSTINs	Card and online payment collections
Platform fee from a supplier outside India	You pay IGST under reverse charge	Self-invoice, payment voucher and the platform's fee statement	Freelancers and exporters paid through foreign platforms
Charges deducted by overseas intermediary banks	No CBIC entry found that addresses these directly	Bank advice showing the deduction	Ask a GST practitioner before treating these

What happens if you do not pay or claim GST on payment gateway and bank charges?

If you do not pay reverse charge GST on foreign fees, the tax stays due with interest. If you do not claim credit on fees, you lose money that a registered exporter can usually recover.

Interest: Tax paid late carries interest from the day after it was due, at a notified rate of up to 18% (CGST Act section 50).
Lost credit: Credit not taken by 30 November after the financial year, or the annual return date if earlier, cannot be taken later (CGST Act section 16(4)).
Refund impact: Exporters under LUT claim unutilised credit as a refund (IGST Act section 16(3)), so missing credit on fees reduces the refund calculated under CGST Rule 89.
Registration: A person liable to pay reverse charge tax falls within the compulsory registration list (CGST Act section 24(iii)), whatever the turnover.

Pay the missed reverse charge tax with interest in your next GSTR-3B and claim the matching credit within the section 16(4) time limit. For refunds, see GST refund on export of services.

How is GST on payment gateway and bank charges calculated?

GST on payment gateway and bank charges is calculated as 18% of the taxable value of each fee. Say a registered exporter receives USD 1,000 with three hypothetical charges. An Indian bank charges a Rs 500 handling fee, so GST is Rs 90. The bank buys dollars at Rs 85.00 when the reference rate is Rs 85.40, so the taxable value is 0.40 x 1,000 = Rs 400 and GST is Rs 72 (CGST Rule 32(2)(a)). A foreign platform takes USD 20, about Rs 1,700, so reverse charge IGST is Rs 306. Total GST is Rs 468, which the exporter can claim as credit.

How is GST on payment gateway and bank charges calculated?
Fee type	Taxable value	GST rate	Best for
Flat bank or gateway fee	The fee amount	18% (9% CGST + 9% SGST, or 18% IGST)	Fixed charges per transaction
Percentage gateway fee	The fee amount, excluding the payment collected	18%	Card and online collections
Currency conversion, margin method	(Reference rate minus bank rate) x units ({L('Rule 32(2)(a)',R32)})	18%	Conversions where the bank uses the margin method
Currency conversion, deemed value up to Rs 1 lakh	1% of the gross amount, minimum Rs 250 ({L('Rule 32(2)(b)(i)',R32)})	18%	Small conversions where the bank uses the deemed method
Foreign platform fee under reverse charge	Fee converted to rupees	18% IGST paid by you	Payouts from suppliers outside India

What mistakes do exporters make with GST on payment gateway and bank charges?

Assuming exemption: Treating fees as GST-free because the export income is zero-rated. Zero rating covers your export, and the fee you pay is a separate supply.
Missing GSTIN: Not giving the bank or gateway your GSTIN, so the invoice never reaches your returns and the credit is blocked.
Using credit for RCM: Paying reverse charge tax from the credit ledger instead of cash.
Ignoring foreign fees: Leaving out fees deducted by a foreign platform, because no invoice with GST ever arrives.
Taxing the full amount: Charging GST on the whole remittance or conversion amount instead of the fee, margin or deemed value.
Late credit: Claiming credit after the 30 November cut-off for the year.

How did we verify this?

Every rule, deadline and form on this page is linked to its official source, checked on the dates below.

IGST Act, 2017, section 13: Place of supply where supplier or recipient is outside India, Sub-sections (2) and (8)(a) with Explanation (checked 8 Oct 2026)
IGST Act, 2017, section 12: Place of supply where supplier and recipient are in India, Sub-section (12) (checked 8 Oct 2026)
IGST Act, 2017, section 5: Levy and collection, Sub-section (3) (checked 8 Oct 2026)
IGST Act, 2017, section 2: Definitions, Clauses (11) import of services and (16) non-taxable online recipient (checked 8 Oct 2026)
IGST Act, 2017, section 16: Zero rated supply, Sub-sections (1), (2) and (3) (checked 8 Oct 2026)
CGST Act, 2017, section 2: Definitions, Clauses (62), (82) and (98) (checked 8 Oct 2026)
CGST Act, 2017, section 16: Eligibility and conditions for taking input tax credit, Sub-sections (1), (2)(aa) and (4) (checked 8 Oct 2026)
CGST Act, 2017, section 22: Persons liable for registration, Sub-section (1) (checked 8 Oct 2026)
CGST Act, 2017, section 24: Compulsory registration in certain cases, Clause (iii) (checked 8 Oct 2026)
CGST Act, 2017, section 31: Tax invoice, Sub-section (3)(f) and (g) (checked 8 Oct 2026)
CGST Act, 2017, section 49: Payment of tax, interest, penalty and other amounts, Sub-section (4) (checked 8 Oct 2026)
CGST Act, 2017, section 50: Interest on delayed payment of tax, Sub-sections (1) and (2) (checked 8 Oct 2026)
CGST Rules, 2017, rule 32: Determination of value in respect of certain supplies, Sub-rule (2) (checked 8 Oct 2026)
CGST Rules, 2017, rule 54: Tax invoice in special cases, Sub-rule (2) (checked 8 Oct 2026)
CGST Rules, 2017, rule 61: Form and manner of furnishing of return, Sub-rule (1), Form GSTR-3B (checked 8 Oct 2026)
CGST Rules, 2017, rule 89: Application for refund (checked 8 Oct 2026)
Notification No. 10/2017-Integrated Tax (Rate), 28 June 2017: services under reverse charge, Table entry 1 (checked 8 Oct 2026)
Notification No. 9/2017-Integrated Tax (Rate), 28 June 2017: exemptions on services, Table entry 10 (checked 8 Oct 2026)
Notification No. 8/2017-Integrated Tax (Rate), 28 June 2017: rates for services, Serial 15, Heading 9971, residual financial and related services, 18% (checked 8 Oct 2026)
Notification No. 11/2017-Central Tax (Rate), 28 June 2017: rates for services, Serial 15, Heading 9971, residual entry, 9% CGST (checked 8 Oct 2026)
Notification No. 15/2025-Central Tax (Rate), 17 September 2025: amendments to Notification 11/2017, Paragraph (1)(a)(vii), serial 15 item (vi) only (checked 8 Oct 2026)

Frequently asked questions

Is GST charged on the export payment itself when it arrives through a payment gateway?

No, GST on the export payment itself is not charged by the gateway. An export of services is a zero-rated supply (IGST Act section 16(1)), and you supply it under LUT or with IGST paid. The gateway's GST applies only to its own fee for handling the payment, shown separately on its invoice.

Can an unregistered freelancer claim back the GST paid on bank charges?

No, an unregistered freelancer cannot claim back GST paid on bank charges. Input tax credit is available only to a registered person (CGST Act section 16(1)). For an unregistered freelancer, the 18% added to bank and gateway fees is a final cost of receiving payments from abroad.

What is the reverse charge mechanism for foreign platform fees?

The reverse charge mechanism means the recipient pays GST instead of the supplier (CGST Act section 2(98)). For a fee from a supplier outside India, the recipient in India pays the integrated tax (Notification 10/2017-Integrated Tax (Rate)). A registered recipient then usually claims the same amount as input tax credit.

Does reverse charge IGST on foreign fees cost a registered exporter anything?

Reverse charge IGST on foreign fees usually costs a registered exporter cash flow only. The tax is paid in cash first (CGST Act section 49(4)) and then counts as input tax (section 2(62)). An exporter under LUT can recover unused credit through a refund claim.

What SAC heading covers bank and payment gateway fees for GST?

Bank and payment fees are generally treated as financial and related services under heading 9971 in the rate notifications (Notification 8/2017-Integrated Tax (Rate), serial 15). The exact service accounting code for a fee should appear on the supplier's tax invoice. Check it there before recording the expense.

Do Indian banks issue a GST invoice for each inward remittance?

Indian banks are allowed to issue one consolidated GST invoice or statement for a month instead of an invoice per remittance (CGST Rule 54(2)). The document can be electronic and need not show your address. Ask your bank where to download it.

Is GST on the currency conversion margin shown separately from the exchange rate?

GST on the currency conversion margin is a separate charge from the exchange rate, calculated on the margin or a deemed value (CGST Rule 32(2)). Banks usually show it as a separate debit or on the monthly tax statement. The tax is added on top of any gap between the bank rate and the reference rate.