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Gst refund (firc not available)

Shahid Saifi (none) (67 Points)

05 May 2019

Dear Professional Colleges,

I have applied for GST refund on export of services on payment of GST. Now the department is asking for FIRC Certificates for foreign remittance, but the same is not available as the payment is received through Paypal.

Can anyone please guide me to a solution for above.

Thanks in advance.

Regards

Shahid

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13 Replies

pritesh (CA Final student) (7101 Points)
Replied 05 May 2019

Refund will be processed automatically on correct filing of gstr 1 and 3b

1 Like

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 05 May 2019

Dear Pritesh
Refund is against the Export of Services not Goods

Dear Shahid saifi
I think you can get receipt of payment reced in paypal

2 Like

pritesh (CA Final student) (7101 Points)
Replied 05 May 2019

K pankaj sir tq for correcting

Shahid Saifi (none) (67 Points)
Replied 05 May 2019

Dear Pankaj, but the department has called for FIRC. Will they be satisfied with the PayPal receipt.

1 Like

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 06 May 2019

i dont think there might be any problem in this, Moreover as per amendment Act 32 of IGST Act , in Section 2 , following being inserted after the words "foreign exchange", the
words "or in Indian rupees wherever permitted by the Reserve Bank of India"
and same being Notified

1 Like

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Shahid Saifi (none) (67 Points)
Replied 06 May 2019

Thanks for your valuable inputs Mr. Pankaj. I think 'wherever permitted by RBI' is of relevance here. Do we have to take any permission from RBI in this regard?

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 07 May 2019

RBI Master Circular no. 14/2015-16 dated July 1, 2015 (dated as on November 5, 2015), which states “there is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations, Notification and Directions framed under the Foreign Exchange Management Act, 1999. Further, in terms of Para 2.52 of the Foreign Trade Policy (2015-2020), all export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency

1 Like

Ravi Kant (CA FINAL) (27 Points)
Replied 22 September 2019

Hello Shahid Saifi, do you have received the refund from department without FIRC, because i'm also going to apply refund but i don't have FIRC>

CA Ronak Jain (practice) (84 Points)
Replied 19 November 2019

We also receive payments through PayPal which uses Citibank as they ForEx processing bank. From Citibank, we get as RTGS, to our business account in HDFC. Citibank is supposed to issue FIRC, and they are also not sending it. Because of FIRC my refund got rejected. Can anyone help me with any case laws or any notification with this regards so that i can use it in appeals.

Ankit Agrawal (chartered accountant ) (67 Points)
Replied 18 December 2019

On making of certain payment citi bank will issue firc.

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M Agarwal (Consultant) (228 Points)
Replied 03 September 2020

Hello all, was this issue resolved, we are facing the same. Citibank is not helpful in this, but transactions are from USD Paypal. What did you do? What do you recommend>?