GST
Export payment not realised after refund
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Facts
Rule 96B says if export proceeds are not realised within the time allowed under FEMA, the refund received must be paid back with interest, unless the RBI writes off or extends the time.
Provisions and law
- Rule 96B, CGST Rules 2017Recovery of refund where export proceeds are not realised within the FEMA period
Analysis
If ₹2 lakh IGST was refunded on a ₹11 lakh export and the buyer never pays, you repay ₹2 lakh with interest. If the RBI or the bank under delegated power extends the time or writes off, the recovery does not apply. Track receivables against shipping bills.
Conclusion
- Track realisation against each shipping bill.
- Seek extension through your AD bank if delayed.
- If not realised, repay the refund with interest.
- Claim it back if realised later.
A Savvy can do this for you
Refund of IGST paid on export of goods via shipping bill
₹4,999
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