Rule 96B - Recovery of refund of unutilised input tax credit or integrated tax paid on export of goods where export proceeds not realised

Exporter must repay proportionate refunded input tax with interest if export proceeds not realised within FEMA period, or recovery follows

If a refund of unutilised input tax credit or integrated tax on exported goods was paid but the export sale proceeds were not realised in India within the FEMA-prescribed period (including any extension), the recipient must deposit the refundable amount proportionate to non-realisation with interest within 30 days of that period's expiry; failing which the amount will be recovered under the Act's erroneous-refund provisions with interest. If the central bank waives the realisation requirement, no recovery will be made. If proceeds are realised after recovery and evidence is produced within three months, the recovered amount will be re-refunded to the extent of realised proceeds, subject to permitted RBI extension.