Why did I receive less than my client sent?
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Short answer
A foreign payment usually arrives short because banks in the SWIFT chain deducted their fees from it: under the SHA charge option, intermediary banks take their charges from the amount sent.1 Your Indian bank may then charge for the inward remittance or the certificate, and GST is levied on the currency converted, before the exchange rate turns what is left into rupees.2
A designer in Indore invoices a client in Texas, the client confirms they sent the full invoice amount, and the rupee credit is worth less than that. The gap is rarely an error. It is usually a mix of bank fees taken along the way and the cost of conversion.
Who takes money out of an international payment?
Up to three parties reduce an international bank payment before it reaches your Indian account. The client's bank charges the client for sending. Correspondent (intermediary) banks that relay a SWIFT payment may deduct their own fees from the amount itself: Wise explains that under a shared (SHA) payment, "the intermediary banks will deduct their charges from your sending amount".1 Your Indian bank may then charge for the inward remittance or the remittance certificate.2
How much does GST take on the conversion?
GST is charged on the value of foreign currency your bank converts, on top of 18% GST on the bank's own fees. HDFC Bank, for example, publishes this slab for GST on the amount of currency exchanged:2
| Amount exchanged | GST as published by HDFC Bank |
|---|---|
| Up to ₹1 lakh | 0.18%, minimum ₹45, maximum ₹180 |
| ₹1 lakh to ₹10 lakh | ₹180 plus 0.09% |
| Above ₹10 lakh | ₹990 plus 0.018%, maximum ₹10,800 |
Other banks publish their own figures; ask yours for its schedule.2 See GST on foreign currency conversion.
How do you stop it happening next time?
The charge option the client picks decides most of the fee deductions. Ask for OUR, where the sender asks their bank to cover all transfer fees so the exact amount arrives.1 Put "all bank charges outside India to be borne by the remitter" on the invoice. Even then, your own bank's fees and the exchange rate still apply. The SWIFT transfer charges guide compares what several Indian banks publish, and OUR, SHA and BEN charges explains the codes.
What do you do about the short amount on paper?
A short receipt is an under-realisation of your export value, and you close it with your bank. Regulation 6 of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 lets the AD bank permit a reduction in export value, on your declaration alone for export values up to ₹10 lakh.3 Regulation 19 also requires banks to keep their charges reasonable and proportional to the service.3 See reduction in export invoice value.
If the numbers on your credit advice do not add up, ask your bank for the breakdown of charges and the rate used.
How did we verify this?
We checked this page against the sources below on 28 October 2026. Read our methodology or report an error.
- [1]Wise Help Centre, Paying by Swift (checked 28 October 2026)
- [2]HDFC Bank: Remittance Services fees and charges (checked 28 October 2026)
- [3]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB, amended up to 22 September 2026 (regulations 6 and 19)
Frequently asked questions
Can I ask my client to cover all the bank charges?+
Yes. Ask them to send the wire with the OUR charge option, where the sender asks their bank to cover the transfer fees so the recipient gets the amount sent.1 State it on your invoice too.
Does my Indian bank charge to receive a foreign payment?+
It depends on the bank. HDFC Bank, for example, lists no inward remittance charge but ₹200 per FIRC, plus GST.2 Check your own bank's published schedule.
Do I have to report the shortfall?+
The shortfall means less than the invoice value was realised. Your AD bank can allow a reduction in export value under regulation 6 of the 2026 Regulations, on your declaration alone where the export value is up to ₹10 lakh.3
Is the exchange rate part of the gap?+
Yes. The rupee amount depends on the rate your bank or provider applies on the day of conversion, which is separate from any fee. Compare the rate on your credit advice with the market rate that day.
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
What charges apply when you receive a SWIFT transfer in India?
Why a SWIFT wire to India arrives short: sender, correspondent and Indian bank charges, OUR vs SHA, GST on conversion, and six Indian banks' published fees.
GlossaryWhat are OUR, SHA and BEN charges?
OUR, SHA and BEN are the options a sender picks for who pays SWIFT wire charges. What each means for the amount an Indian exporter actually receives.
RBI and FEMAHow do you reduce the value of an export invoice under FEMA?
When a foreign client pays less than the invoice, your AD bank can allow a reduction in export value under regulation 6. Up to ₹10 lakh, your declaration is enough.
GSTHow is GST charged on foreign currency conversion of export receipts?
How GST is worked out when a bank converts an exporter's foreign currency receipt to rupees: the rule 32(2) value, the slab option, worked examples and input tax credit.