Export Realization for Rule 96(B)

[DAMINI TALWAR]

As per the provision of Rule 96B(1), where the sale proceeds, or any part thereof, in respect of such export of goods are not realised by the applicant within the period allowed under FEMA, but the RBI writes off the requirement of realisation of sales proceeds on merits, the refund paid to the applicant shall not be receovered.

Here what is the meaning of RBI writes off the requirements of realisation of sales proceeds on merits ? does it cover self-write off cases or by AD Category – I bank on behalf of the Reserve Bank,as mentioned in the RBI circular ?

AI Summary

Write-off of export proceeds protects GST refund when authorised bank or monetary authority grants the write-off.
Rule 96B(1) links non-realisation of export sale proceeds under FEMA to potential refund recovery, but a write-off of unrealised proceeds authorised by the monetary authority or by an authorised dealer bank under delegated powers prevents recovery; self-declared write-offs do not suffice and exporters must obtain formal written confirmation from their authorised dealer bank evidencing the write-off as per FEMA norms.