GST Refunds for Exporter of Services – 7 Controversies
GST Refunds for Exporter of Services – 7 Controversies In this article I will discuss – 7 controversies in GST refund for exporters of services. These are elaborated as below: - 1. Forex Receipt - FIRC / BRC In case of service exporters, GST refunds are available on the basis of receipt of convertible foreign exchange. And to evident the payment against export invoices, proofs demanded by department is Foreign Inward Remittance Certificate or Bank Realisation Certificate. The same has been asked in the board circulars as well. But now a day’s banks are issuing foreign remittance advices instead of the forex remittance certificate . As per RBI Circular – AP(DIR) Circular No 74 of 26 May 2016, RBI decided to discontinue with immediate effect issuance of FIRC for any export related payment. It has also been decided that FIRC may be issued for inward remittance covering FDI / FII. In all other cases, there is no provision for issuing FIRCs. In reference to