The Central Board of Indirect Taxes & Customs (CBIC) on October 26, 2026, issued the clarification in respect of receipt of payment for export of goods or services.
The following has been stated:
• CBIC has clarified GST refund-related issues concerning the realisation of export proceeds. For export of services, receipt of payment in convertible foreign exchange or through repatriable INR accounts, including Special Non-Resident Rupee (SNRR), NRE and INR Nostro accounts, is considered to fulfil the export-of-services payment condition under Section 2(6)(iv) of the Integrated Goods and Services Tax (IGST) Act, 2017.
• Payments received by stockbrokers from overseas clients through repatriable INR accounts are also covered, while payments through NRO accounts shall be routed through repatriable INR accounts. Export receivables set off against import payables, in accordance with RBI directions, and commissions received by Indian reinsurance brokers through the net retention mechanism are also treated as satisfying this condition.
• For export of goods, under Rule 96B of the CGST Rules, 2017, refunds may be recovered proportionately, along with applicable interest, where export proceeds are not realised within the period prescribed under the Foreign Exchange Management Act, 1999, including any permitted extension.
• The applicable realisation period is governed by the RBI's FED Master Direction No. 16/2015-16, as amended from time to time. However, recovery will not be made where the requirement to realise export proceeds has been written off, wholly or partly, by the RBI or an authorised dealer bank, as applicable under the clarification.
[Notification No. - 263/09/2026-GST]
