GST implementation in the country is considered one of the biggest reforms after independence. Yes, it is indeed a big step and bold decision. The government has taken a big risk by making it effective in the ‘Big Bang’ manner.
However, the three months so far have been quite peaceful, and there are bo major issues barring a few teething troubles.
As far as online forex trading in india is concerned, the operators were ready for the change. All Forex operators have been found GST compliant, and brokers, agents, and normal investors did not face any major issue while trading or exchanging money.
GST slab and GST Rate for foreign exchange trading
There are six categories of goods and services in India. According to the GST law, if a person supplies the services of currency exchange to its clients, then he or she may exercise the option of ascertaining the values in 32(2)b in a financial year.
Since the currency rates are volatile, there is always a problem of valuation. Hence, the government has considered the difference between the selling and buying rates.
If you open forex trading practice account, then you can understand the implication of GST on foreign trading without putting your real money at risk.
After GST implementation, money exchange and trade becomes cheaper. Up to 100,000 INR, the GST rate is .14% and the minimum capping is 35INR. For amount more than 100,000 and less than 10,00,000 it will be 1000+ .5 percent of the gross amount that exceeds 100,000 up to 10,00,000.
Similarly, there are subsequent rates which can be obtained from FOREX trading operators. When you open forex trading account, read the terms and conditions before you start trading.
Knowing the value in respect of supplies
When you open an account in one of the best forex trading platforms, it is important that you know about the value of supply of services. It is important because the trade involves sale and purchase of foreign currency.
When exchange from or to INR, the value will be the difference between the buying and selling rates. The reference rate defined by the Reserve Bank of India is taken into consideration.
In case the rate is not available, then the value considered is one percent.
GST is changing the way business is done in the country, and foreign exchange is also not an exception. Get a thorough knowledge of it before you proceed further.