Mandatory Documentary Evidence for Export Realisation

[ChandraShekar MN]

Respect Sir,

Refund application file for claim of Accumulated Input Tax Credit in case of Zero Rated Supply of Export of service.

The Department is insisting for FIRC or e-BRC instead of FIRA, as per RBI Circular, banks are not issuing FIRC.

On account of Non submission of FIRC, department is rejecting the Refund application.

What is recourse available in this scenario.

Thanks in Adance

[Shilpi Jain]

File appeal against the order!!

[YAGAY andSUN]

Issue: Rejection of Refund Claim Due to Non-submission of FIRC

You have filed a refund application for accumulated Input Tax Credit (ITC) under Rule 89 of the CGST Rules, for zero-rated export of services without payment of tax (under LUT). The GST department is rejecting the refund claim on the grounds that FIRC (Foreign Inward Remittance Certificate) is not submitted, and they are not accepting FIRA (Foreign Inward Remittance Advice) as a valid substitute.

Current RBI Position:

As per RBI guidelines, FIRC is no longer issued by banks for most inward remittances received electronically (i.e., without physical instruments). Instead:

• Banks now provide a FIRA (Foreign Inward Remittance Advice), which serves as an acknowledgment of receipt of foreign exchange.
• For exporters, banks upload remittance details to the DGFT portal, which can then be used to generate an e-BRC (Electronic Bank Realisation Certificate).

Therefore, insisting on a document that banks no longer issue is contrary to current RBI norms.

Rule Position:

Under Rule 89(2)(c) of the CGST Rules, the refund application must be accompanied by:

“A statement containing the number and date of invoices and the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates...”

The rule requires proof of receipt of payment in convertible foreign exchange, but it does not specify that only FIRC is acceptable. A FIRA or e-BRC serves the same purpose—evidence of foreign inward remittance—and should be accepted.

Practical Recourse:

1. Request e-BRC from Your Bank:

Ask your bank to upload the remittance details on the DGFT portal so that an e-BRC can be generated. This is widely accepted by GST authorities as valid proof of foreign exchange realization.

2. Submit a Representation:

If your bank cannot generate e-BRC and is only issuing FIRA:

• Submit a written representation to the GST officer explaining the situation.
• Enclose:
  • Copy of FIRA
  • Letter or email from the bank confirming that FIRC is no longer issued
  • Copy of relevant RBI circulars
  • Explanation that FIRA serves the purpose of proving receipt of foreign exchange
• Emphasize that rejection solely on the basis of missing FIRC is unjustified given current banking practices.

3. File a Grievance:

If the refund application is still not accepted, file a grievance through:

• The GST Portal Grievance Section, or
• The CPGRAMS (Central Public Grievance Redressal and Monitoring System)

Attach all relevant documentation and correspondence.

4. Appeal the Rejection:

If a formal refund rejection order is issued:

• File an appeal under Section 107 of the CGST Act.
• Argue that the condition of submitting FIRC cannot be enforced when the document itself is not issued by banks as per RBI policy.
• Cite that FIRA or e-BRC provides equivalent confirmation of receipt.

Conclusion:

You are entitled to a refund of accumulated ITC on export of services as long as you can prove receipt of payment in foreign exchange. In today's banking system, FIRA or e-BRC is the practical and acceptable documentary proof, and rejection due to lack of FIRC can be challenged both administratively and legally.

***

[YAGAY andSUN]

Additional Information 

Meaning of FIRA (Foreign Inward Remittance Advice):

FIRA, or Foreign Inward Remittance Advice, is a document issued by an Authorised Dealer (AD) bank in India that confirms the receipt of foreign currency into an Indian bank account.

🔍 Purpose of FIRA:

It serves as proof that a payment in foreign exchange has been received from a party located outside India, typically:

• For export of services
• Foreign investments
• Loan repayments
• Any other permissible foreign transactions under FEMA (Foreign Exchange Management Act)

What FIRA Contains:

A typical FIRA includes:

• Name and address of the remitter (foreign party)
• Name of the beneficiary (Indian exporter or service provider)
• Purpose of remittance (e.g. export of services)
• Currency and amount received
• Date of receipt
• Conversion rate and amount credited in INR
• UTR (Unique Transaction Reference) number

FIRA vs FIRC vs e-BRC:

Document	Issued By	Purpose	Current Status
FIRC (Foreign Inward Remittance Certificate)	Bank	Proof of foreign inward remittance	Mostly discontinued by banks
FIRA (Foreign Inward Remittance Advice)	Bank	Acknowledgment of foreign currency receipt	Currently issued by banks
e-BRC (Electronic Bank Realisation Certificate)	DGFT (based on bank data)	Required for export incentives and refunds	Accepted for GST refunds

FIRA Is Valid Proof of Remittance

Even though FIRC is no longer issued, FIRA is accepted in many practical cases along with e-BRC, especially where:

• RBI has discontinued FIRCs
• Banks issue FIRAs as a standard procedure

If you’re applying for a refund under GST or other export benefits, FIRA + e-BRC is generally accepted as valid proof of receipt of foreign currency.

***

[KASTURI SETHI]

Dear Querist,

 You have mentioned, " department is rejecting the refund application".  What is the actual status ?  Whether SCN has been issued or not ?  If the SCN has been issued, whether the same has been adjudicated ? 

The department cannot reject refund without SCN and without personal hearing.

[Sadanand Bulbule]

There is an exception to every general principle or law as far as the specific issue on hand is concerned. Once the exporter comprehensively establishes the factual and legal position of export of services to overseas customers, the core issue stands settled. However a certificate issued Authorised Bank confirming the receipt of consideration by the exporter, it is enough in place of FIRC or e-BRC, which the RBI too endorses. The GST Authorities are expected to be proactive in releasing refund legally due to the exporters. 

[YAGAY andSUN]

GST Authorities can/may/must/should have access the 'RBI-DGFT E-BRC Module' on their own to expedite the sorting of refund claims against exports. Alternatively RBI-DGFT E-BRC Module must be interfaced with the GSTN as it has been interfaced with ICEGATE and ICES 1.5. Implementing so would be a desired relief to the Exporters.

[Raam Srinivasan Swaminathan Kalpathi]

Refund master Circular 125 - Annexure A clearly states

Declaration under second and third proviso to section 54(3) BRC/FIRC /any other document indicating the receipt of sale proceeds of services

Undertaking in relation to sections 16(2)(c) and section 42(2) Copy of GSTR-2A of the relevant period Statement 2 under rule 89(2)(c)

Statement of invoices (Annexure-B) Self-certified copies of invoices entered in Annexure-A whose details are not found in GSTR-2A of the relevant period

Self-declaration regarding non-prosecution under sub-rule (1) of rule 91 of the CGST Rules for availing provisional refund

There is also a HC ruling which states that FIRA would suffice. Please check.

AI Summary

Exporters Challenge GST Refund Obstacles: Navigating Documentary Evidence Requirements for Seamless International Trade Claims A discussion forum explores mandatory documentary evidence for export refund claims under GST. The primary issue involves the GST department's rejection of refund applications due to non-submission of Foreign Inward Remittance Certificate (FIRC). Participants discuss alternative documentation like Foreign Inward Remittance Advice (FIRA) and electronic Bank Realization Certificate (e-BRC), highlighting current RBI guidelines and suggesting practical strategies for exporters to challenge refund claim rejections through administrative and legal channels.