Non relisation of export proceeds within FEMA time recovery of refund of unultilsed input tax credit of IGST paid on export of goods [Rule 96B of CGST Ruels]

Exporters Must Return Tax Refunds if Proceeds Not Realized on Time, Unless Waived by RBI: Rule 96B

Non-realization of export proceeds within the time frame specified by FEMA necessitates the repayment of a pro-rata refund of unutilized input tax credit (ITC) or IGST paid on exported goods within 30 days, along with interest, under Rule 96B of the CGST Rules. If the sale proceeds are not realized within the allowed period, the refunded amount must be returned, or it will be recovered under applicable sections of the Act. However, if the Reserve Bank of India waives the realization requirement, the refund is not reclaimed. If proceeds are realized later and evidence is submitted within three months, the recovered amount is refunded.