Work out the foreign currency markup with 18% GST on international card spends and how much of your travel budget it uses.
When you pay in a foreign currency, or pay an overseas merchant online in rupees, most Indian credit cards add a foreign currency markup on top of the network's exchange rate, and 18% GST is charged on that markup. This calculator shows the cost in rupees and how much of a fixed travel budget it uses.
How to use it. Find the markup in your card's MITC or schedule of charges. Multiply it by 1.18 to include GST (2% becomes 2.36%; 3.5% becomes 4.13%). Enter fixed charges such as an ATM withdrawal fee and the number of such transactions. If a terminal or website offered to bill you in rupees (dynamic currency conversion) and you accepted, estimate that extra margin under the last box.
Worked example (illustrative). ₹1,00,000 of spending abroad on a card with a 3.5% markup costs ₹3,500 plus ₹630 GST: ₹4,130. On a card with a 2% markup the cost is ₹2,360, a difference of ₹1,770. If the card earns 1% rewards on foreign spends, net them off against the markup yourself.
Limits. The rupee amount depends on the network rate on the settlement date, not the date you paid, so refunds can differ. Some cards charge the markup on rupee payments to foreign merchants. See forex markup and DCC.
Reward Maths and Choosing a Card
How foreign currency markup with 18% GST and dynamic currency conversion work on Indian credit cards, rupee payments to foreign merchants, LRS and TCS points, and worked rupee examples.
Fees, Rewards and 2026 Rules
Which credit card charges attract 18% GST in India, why card interest is taxed while loan interest is exempt, how GST shows on your statement and how to calculate it.
