Zero Forex Fees

Help
1

Jupiter Claims that it provides zero forex fees for the PRO customers, but recently I made an international transaction of Ra. 2000, where I have just got partial refund of the Forex fees, and not the whole amount back. The support is claiming that it has deduced GST on forex fees.

If they have to cut GST on forex fees, then how they can claim it as a 0 forex for PRO users.

I have earlier used Fi.money (Infinite account), where the refund of the forex fees is the complete amount along with the GST charged. Similar is the case for Scapia, where also there is no forex fees as well.

I guess Jupiter needs to stop presenting false claims to customer.

2

Hey @Akshit_Gupta Welcome back! It has been 3 years since you last posted here.

You’re right that the full amount isn’t reversed. For international transactions on the Jupiter debit card, a 3.5% forex markup + GST is applied. We refund the 3.5% markup, however the GST component isn’t refundable as it is a government tax and not retained by us.

I understand how this can be disappointing, thanks for pointing it out. We’ll work on making this clearer in the forex section of the app so the information is transparent for everyone.

3

Thank you! @Soumyadeep_Ghosh. It’s been a lovely and hassle free journey with Jupiter till now, and looking forward to many more years.

Definitely, an update in the documentation with clear terms will be really helpful. Coming to my question, if this is the case how did companies like Fi.money (also, was tied to Federal Bank), was able to provide the full refund of the forex fees, including GST?

Any inputs or thoughts will be really appreciated.

4

@Akshit_Gupta Cannot say for certain (depends on individual business model), but here are ways that is possible:

  • The underlying taxable service itself is reversed (which it isn’t, technically)
  • They adjust it via proper GST credit/reversal filings (which is again time taking and not immediate)
  • Company bears the amount as an expense and makes the entire amount available for your usage with in-app currencies
  • Waiving their own fee (markup) for you, but not the tax component tied to that fee