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TMI BlogNon receipt of BRCX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir/ Madam, Please inform what are the adverse effect if Bank Realisation Certificate of some export consignments are not received after lapse of more than one year/ two years. Party has taken Refund against these exports. Now department has raised objection to produce previous BRC. Can they stop refund and ask BRC ? Is BRC is mandatory in case of exports ? Can department ask for the GST on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Export consignment of which BRC not received? What are exact provisions in GST in this regard ? Thanks - Reply By KASTURI SETHI - The Reply = Dear querist, Pl. read word for word and especially bold letters of the relevant extract of the undermentioned circular.. Hope your doubt will be cleared. Circular No. 125/44/2019-GST, dated 18-11-2019 - Reply By Rajesh Kumar - The Reply = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir , it's clear that in case of refund on account of export of goods, availability of BRC is not impressive condition but it doesn't mean that BRC is not required anytime. They are asking BRC of those exports against them refund has already been taken . Now Can they demand GST on those exports or demand refund amount along with interest and penalty ? - Reply By KASTURI SETHI - The Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly = W.r.t. your query at serial no.2 above, answer is NO. BRC is not mandatory. You can search easily on DGFT website or Customs website. - Reply By Ganeshan Kalyani - The Reply = I agree with the views of Sri Kasturi Sir. - Reply By raghunandhaanan rvi - The Reply = Sir, The amount received as a refund is liable to be paid back with applicable interest under Section 50 of CGST A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct 2017 within 30 days after the expiry of the time limit prescribed under FEMA if payment for supply is not received in foreign exchange within the specified time limit prescribed under FEMA. Proviso to section 16(3) of IGST Act 2017 substituted vide Section 123(b) of Finance Act 2021 . Kindly take note of this change also. - Reply By KASTURI SETHI - The Reply = There is no d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oubt. Export proceeds must be received. Govt. of India has allowed so many benefits to the exporters for the sake of foreign exchange. If export proceeds are not received, the exporter will forfeit all export-benefits allowed under various Acts.. - Reply By KASTURI SETHI - The Reply = If export proceeds have already been realised (whether in foreign currency or in Indian Currency through V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ostro Account wherever permitted by RBI ), you can take the shelter of the following case law but it pertains to pre-GST era. Only case law can help you. 2017 (6) TMI 163 - CESTAT BANGALORE TVS MOTOR COMPANY LTD. Versus COMMISSIONER OF C. EX. S.T., MYSORE - Reply By KASTURI SETHI - The Reply = This case law is relevant for you inasmuch as Customs Act has not been subsumed into GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Acts . IGST Act does not talk of BRC as mandatory. document. - Reply By raghunandhaanan rvi - The Reply = Thank you very much Kasturi Sir for your valuable information. - Reply By raghunandhaanan rvi - The Reply = Thank you very much Kasturi Sir for your valuable information. - Reply By raghunandhaanan rvi - The Reply = Sir Further to my replies above on the subject matter, it is rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant to refer to Rule 96B of CGST Rules which deals with the recovery of refund of unutilized input tax credit or integrated tax paid on export goods where export proceeds are not realized. It is said that the refund of IGST paid on export is linked with the realization of export proceeds as per FEMA guidelines. Failure to the realization of export proceeds within the time frame as laid dow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in FEMA, the exporter is required to return to the department the amount refunded with interest. The documentary proof of realization of export proceeds is the Bank Realization Certificate or Foreign inward remittance certificate issued from the Bank. - Reply By KASTURI SETHI - The Reply = Dear Sir, In other words, as per FEMA, BRC is not mandatory, if the party produces FIRC. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Do you agree ? Otherwise there is a difference between BRC and FIRC. - Reply By raghunandhaanan rvi - The Reply = Dear Sir, I agree with you Kasturi Sir. BRC is not mandatory since EDPMS is implemented and e-BRC is introduced. Department can verify the particulars of receipt of export proceeds against a shipping bill through the e- BRC portal. Therefore, no physical copy of BR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C is required anymore. - Reply By KASTURI SETHI - The Reply = Dear Sir, Thanks a lot for your clarification and confirmation. - Reply By raghunandhaanan rvi - The Reply = Thank you Kasturi Sir. - Reply By KASTURI SETHI - The Reply = Dear Sir, DR.MARIAPPAN GOVINDARAJAN, Sir has written an article on the issue of 'Bank Realization Certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9; which was published in EXCUS CD This article is worth reading. - Reply By raghunandhaanan rvi - The Reply = Yes Sir I will surely read his article. Thank you do much - Reply By Ganeshan Kalyani - The Reply = Discussion enriched my knowledge. Thanks. - Non receipt of BRC - Query Started By: - Rajesh Kumar Dated:- 8-3-2022 Goods and Services Tax - GST - Got 18 Replies - GST - Discussion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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