India’s $800 Billion Trade Target – Are You Ready? India crossed $780 billion in total merchandise trade in FY 2024-25, targeting $1 trillion in exports by 2030. Foreign Trade Policy 2023-28 provides the roadmap – with schemes like RoDTEP, Advance Authorisation, EPCG, and Duty Drawback worth thousands of crore in benefits annually. Yet most Indian exporters – especially MSMEs – are not fully utilizing the incentives they are entitled to. Simultaneously, importers face complex duty structures, quality control orders, and ICEGATE compliance. This guide covers the complete export-import ecosystem – from your first IEC to claiming RoDTEP credits – with all June 2026 updates.
Insurance against export payment risk; political risk cover; country risk rating; credit limit for buyers
ecgc.in
EXIM Bank
Concessional export financing; buyer’s credit; line of credit to foreign countries for Indian exports
eximbankindia.in
BIS (Bureau of Indian Standards)
Quality Control Orders (QCOs) for specific imports; mandatory BIS certification for listed products
bis.gov.in
2. IEC (Import Export Code) – Your Trade Licence
IEC is the mandatory gateway for all India trade: Every person, firm, company, LLP, trust, HUF, or society that imports into India OR exports from India (for commercial purpose) must have an IEC. Without IEC, no import/export transaction is legally valid. Banks require IEC for outward trade payments. RoDTEP, AAS, EPCG – all require valid IEC.
Key IEC Facts
Parameter
Details
What is IEC?
10-digit Import Export Code issued by DGFT; linked to PAN; one IEC per PAN
Fee
₹500 (very low; one-time)
Processing time
1–3 working days after online application
Validity
Lifetime — no expiry; but annual update mandatory
Annual Update (CRITICAL)
Every IEC holder must update their profile on DGFT portal between 1 April and 30 June each year. If missed → IEC automatically deactivated → cannot trade. Reactivation requires profile update.
Annual Update Deadline
By 30 June 2026/2027/2028…..
Who needs IEC?
All commercial importers; all exporters; Amazon Global / Etsy / international e-commerce sellers; entities applying for FTP benefits; companies sending trade remittances
Who does NOT need IEC?
Import/export for personal use (not commercial); government departments for their own use; defence/military imports with special clearance
June 2026 update
All DGFT applications (including IEC modification) now require Aadhaar-linked authentication on the revamped DGFT portal
How to Get IEC – Online Process
1
Register on dgft.gov.in → create account with Aadhaar-linked mobile; link Aadhaar for authentication
2
Start IEC Application: Services → IEC → Apply for IEC; fill entity details (business name, constitution, address, directors)
3
Upload Documents: PAN card; Aadhaar (proprietor/directors); cancelled cheque/bank certificate; address proof of business; photograph
4
Pay ₹500 online (UPI, net banking, card)
5
IEC Issued within 1–3 working days; e-IEC certificate downloadable from DGFT portal; no physical certificate sent
6
Post-IEC: Register AD (Authorised Dealer) Code at each customs port where you will trade; register on ICEGATE for customs filing
3. RCMC – Registration with Export Promotion Councils
Registration Cum Membership Certificate (RCMC) is issued by the relevant Export Promotion Council (EPC) or commodity board for your product. RCMC is required to access most FTP benefits and is used to verify exporter credentials for market access programmes, trade fairs, and incentives.
The Harmonized System of Nomenclature (HSN) is the international product classification system used globally for customs purposes. India uses 8-digit HSN codes (6-digit international + 2 India-specific). Getting HSN right is critical – it determines:
Customs duty rate on imports (BCD percentage)
IGST rate on imports (same as GST domestic rate for that HSN)
RoDTEP eligibility and rate (specific to 8-digit HSN under Appendix 4R)
Anti-dumping duty (ADD) applicability
Quality Control Orders (QCO) and BIS certification requirements
⚠️ Finance Act 2025 HS code reclassification – action required:
Finance Act 2025 amending the Customs Tariff Act, 1975 reclassified several HS codes. Exporters must revalidate their 8-digit HS code classification against the revised Customs Tariff Schedule. A mismatch between the tariff HS code and the RoDTEP Appendix 4R entry can result in rejection of RoDTEP claims. Cross-check your HS code against both the current Customs Tariff Schedule and Appendix 4R/4RE before every shipment.
5. RoDTEP – Remission of Duties and Taxes on Exported Products
RoDTEP (Remission of Duties and Taxes on Exported Products):
India’s primary export incentive scheme – replaced WTO-incompatible MEIS. Refunds embedded taxes and duties that are not covered under any other refund mechanism (electricity duty, mandi tax, stamp duty, fuel taxes at state level). WTO-compliant because it remits actual taxes paid, not a subsidy.
Key RoDTEP Facts (June 2026)
Parameter
Details
Rate applicable document
Appendix 4R (DTA exporters; revised effective 1 May 2025 per PN 10/2025-26); Appendix 4RE (SEZ, EOU, Advance Authorisation holders; effective 1 June 2025 per PN 11/2025-26)
Rate range
0.1% to 4.3% of FOB value of exports (varies by HSN code)
How it works
Declare intent on Shipping Bill at time of export → credits auto-generated in ICEGATE account → transferable scrips → use to pay import duty or sell in market
Recent extension
RoDTEP scheme was extended for DTA units until March 31, 2026; and restored for AA, EOU, SEZ exporters from 1 June 2025. Further extension to September 2026 announced vide Notification No. 74/2025-26 dated March 31, 2026.
Excluded products (currently)
Steel, pharmaceuticals, and organic/inorganic chemicals currently fall outside the RoDTEP scheme.
Exclusions
Exports under Duty Drawback (if drawback already covers the same taxes); products in exclusion list
How to claim
Declare intent to claim on the Shipping Bill itself at the time of export. Scrips are generated electronically via the ICEGATE portal.
Use of scrips
Pay Basic Customs Duty on imports; transfer to other importers; cannot use for IGST or SWS
Combined with Drawback
In most cases, you can claim the All Industry Rate (AIR) of Duty Drawback along with RoDTEP, provided the Drawback rate doesn’t already account for the taxes covered by RoDTEP.
RoDTEP + Drawback layering = maximum benefit: Many exporters claim both Duty Drawback (on customs duty paid on imported inputs) AND RoDTEP (on state-level taxes, fuel levies, stamp duties not covered by drawback). These are not mutually exclusive when they cover different taxes. Engage GCA to calculate your maximum legitimate incentive stack for each export shipment.
6. Advance Authorisation Scheme – Duty-Free Inputs for Export
Advance Authorisation Scheme (AAS):
Allows exporters to import inputs duty-free (BCD exempt; IGST typically also exempt) if those inputs are physically incorporated in the export product. The exporter must fulfil an export obligation (export the finished goods) within the prescribed time.
Parameter
Details
Who can apply
Any manufacturer-exporter or merchant-exporter tied to a supporting manufacturer; having IEC
How to apply
Online on DGFT portal BEFORE importing; DSC required; specify product, inputs, SION (Standard Input-Output Norms) or seek adhoc norms
Inputs covered
Raw materials, components, intermediates, consumables (fuel excluded), packing material – that are physically incorporated in the export product
Export obligation
Export the finished goods with at least 15% value addition over the CIF value of imported inputs
Export obligation period May 2026 Update
12 months from date of issue of Advance Authorisation (reduced from 18 months for most sectors under DGFT Notification May 2026). Capital goods: still 18 months.
Standard Input-Output Norms published by DGFT specify permissible input quantities per unit of export. If no SION → apply for adhoc norms → DGFT fixes quantities.
Bond/LUT with customs
Must execute bond or LUT with customs covering duty payable on imports under AAS
RoDTEP on AAS exports
DGFT has restored RoDTEP benefits for AA holders from 1 June 2025.
⚠️ Non-fulfillment of AAS export obligation: If you import duty-free under AAS but fail to export within the obligation period: (a) Customs duty + interest at 15% p.a. on all duty-free imports; (b) 200% fine on customs duty if willful default; (c) IEC may be suspended. Track every AAS obligation carefully – multiple open AAS licenses with unfulfilled obligations are a major compliance risk.
7. EPCG – Import Capital Goods at 0% or 3% Duty
Export Promotion Capital Goods (EPCG) Scheme:
Allows import of new capital goods (machinery, equipment, tools, testing instruments, spares, software systems) at 0% Basic Customs Duty (or 3% for second-hand goods) against an export obligation. Enables technology upgradation at significantly lower cost.
Parameter
Details
Duty benefit
0% BCD on new capital goods (normal BCD can be 0–20%); 3% for second-hand goods
Who can apply
Manufacturer-exporters; service providers; merchant-exporters tied to manufacturers; star export houses
How to apply
Online on DGFT portal → EPCG section → upload documents → DGFT issues EPCG Authorisation → import CGs within validity
Export obligation
6× the duty saved (BCD that would have been paid without EPCG) in FOB value of exports, over 6 years
Obligation period May 2026 Update
12 months for most sectors (reduced from 18 months). Capital goods sector: still 18 months. This is the period within which EPCG applications must be completed – not the 6-year export obligation period.
Capital goods examples
CNC machines, injection moulding machines, testing labs, packaging machines, refrigeration units, software systems, quality control equipment, solar panels for captive power
Nexus requirement
Capital goods must be used in the export manufacturing activity (not personal use, not non-export production)
Post-import compliance
Annual EPCG compliance report to DGFT; customs-stamped documents required; maintain export obligation records
8. Duty Drawback – Reclaiming Customs Duty on Export Inputs
Duty Drawback allows exporters to claim a refund of customs duties paid on imported inputs that are used in the manufacture of exported goods. It is different from RoDTEP (which remits other taxes) and can be claimed simultaneously.
Type
Who Gets It
How
All Industry Rate (AIR) Drawback
Any exporter – pre-determined rates by product (Appendix 4B)
Declare on Shipping Bill; drawback auto-credited to bank account after export
Brand Rate / Special Brand Rate
Exporters whose actual duty paid on inputs exceeds AIR significantly
Apply to Commissioner of Customs with actual duty payment evidence; more time-consuming but higher benefit
Rate range (AIR)
0.5% to 9%+ of FOB value depending on product
Rates notified by Ministry of Finance (last notified Notification No. 21/2026-Customs (N.T.) dated February 16, 2026 revised AIR rates for Chapter 71 (Jewellery))
Limitation
Cannot claim drawback AND RoDTEP on the SAME taxes
Drawback covers customs duty; RoDTEP covers other levies → can layer the two
9. GST on Exports – LUT vs IGST Route
Exports are zero-rated supplies under GST (§2(47), CGST Act). Exporters can export without paying IGST (and claim ITC refund) or pay IGST and get it refunded. Two routes:
Parameter
Route 1: LUT (Letter of Undertaking) – Preferred
Route 2: Pay IGST and Claim Refund
What it is
File Form GST RFD-11 (LUT) on GST portal; undertake to comply with GST export conditions; export without paying IGST
Pay IGST on exports; claim refund of IGST paid
Cash flow
No cash outflow on IGST; ITC on inputs refunded as cash
IGST paid upfront; refunded later (typically 30-60 days but delays common)
LUT validity
Annual – file new LUT each financial year (April–March)
No LUT needed
Recommended for
Most exporters – preferred as no cash lock-up in IGST payment
Exporters who cannot file LUT due to past non-compliance or voluntary preference
ITC refund
Accumulated input ITC credited to exporter; refund via GST portal Form RFD-01
IGST paid on exports refunded; ITC on inputs also available
Services exports
LUT required; eBRC (from 1 May 2025: “Mode of Export of Services” field mandatory)
Same options available
File LUT for every financial year before first export: The LUT must be filed on the GST portal for each financial year before the first export shipment. It is a simple online declaration – takes 10 minutes. If LUT is not filed and you export without paying IGST → this export becomes a non-LUT export → IGST demand from GST department + interest. GCA handles LUT filing as part of annual GST retainer for exporter clients.
11. ICEGATE – Customs Filing: Shipping Bills and Bills of Entry
For Exporters – Shipping Bill
File Shipping Bill on ICEGATE (icegate.gov.in) – DSC (Digital Signature Certificate) mandatory
Contains: Exporter details, IEC, invoice details, product description, HSN code, quantity, FOB value, port of loading, port of destination, GST LUT/IGST details, Drawback/RoDTEP claim declaration
Types: Free Shipping Bill (no incentive claim), Drawback Shipping Bill, Duty-Free Shipping Bill (AAS), EPCG Shipping Bill
After customs examination and clearance: Let Export Order (LEO) issued → goods cleared for export
After LEO: RoDTEP/Drawback credits generated in ICEGATE account
For Importers – Bill of Entry
File Bill of Entry on ICEGATE before or on arrival of goods
Types: Home Consumption (B/E Type H – straight import), Warehousing (B/E Type W – customs bonded warehouse), Ex-Bond (B/E Type B – from bonded warehouse to home)
Out of Charge (OOC) issued after duty payment → goods released to importer
Risk Management System (RMS): Low risk imports get automatic green channel; high risk: customs examination
IGST paid on import → claim as ITC in GSTR-3B (requires ICEGATE-GSTN linkage; auto-populated)
AD Code registration – must-do before first shipment: AD (Authorised Dealer) Code is your bank’s unique code at the customs port. You must register your bank’s AD Code at each port through which you plan to trade. Obtain an AD Code letter from your bank and submit to the customs port commissioner’s office. This is a one-time registration per port – do it before your first shipment or import to avoid delays.
12. Star Export House Status
Category
Minimum FOB Export in Current + 2 preceding years (USD)
Key Benefits
One Star Export House
USD 3 million
Self-certification on origins; simplified procedures; some bank facility improvements
Two Star Export House
USD 25 million
All One Star benefits + priority in Grievance Resolution Cell; additional EPCG/AAS benefits
Three Star Export House
USD 100 million
Single Window Clearance at airports/ports; exemption from furnishing bank guarantee in most FTP schemes
Four Star Export House
USD 500 million
All Three Star benefits + enhanced facilitation; priority customs clearance
Five Star Export House
USD 2 billion
Premier status; highest facilitation; government recognition as India’s export champion; fast-track approvals
Apply on DGFT portal with export performance proof (Shipping Bills)
Valid for 3 years; renewable
Both direct exports and deemed exports count towards star status
13. AEO – Authorised Economic Operator
India’s Authorised Economic Operator (AEO) program (aligned with WCO SAFE Framework) certifies trusted traders for facilitated customs treatment. Three tiers:
AEO Tier
Eligibility
Key Benefits
AEO-T1 (Importer/Exporter)
Importers/Exporters with clean compliance record; significant trade volumes
Direct Port Delivery (DPD) for imports; reduced examination; dedicated customs officer; faster clearance
AEO-T2 (Importer/Exporter)
Higher volume; more rigorous vetting
All T1 benefits + deferred duty payment (pay customs duty on 15th of following month instead of at filing)
Recognition as trusted logistics partner; priority queueing; mutual recognition with foreign AEO programs (US C-TPAT, EU AEO, Korea AEO)
AEO mutual recognition creates global facilitation: India has signed Mutual Recognition Arrangements (MRAs) with USA, South Korea, Hong Kong, Taiwan, and several EU countries. An AEO-certified Indian exporter shipping to the US gets fast-track customs clearance from US Customs and Border Protection under C-TPAT reciprocity. For Indian exporters shipping to multiple countries, AEO certification can significantly reduce transit times and examination delays worldwide.
14. FEMA Trade Compliance
FEMA Trade Requirement
Details
Export proceeds realisation
Export proceeds must be realised within 9 months from date of shipment (for goods); extendable with AD bank approval for specific cases
eBRC (e-Bank Realisation Certificate)
Bank automatically generates eBRC when inward remittance is received against export. Exporter self-certifies eBRC on DGFT portal. Required for export incentive claims. From 1 May 2025: “Mode of Export of Services” field mandatory in eBRC for services.
Advance payment for exports
Can accept advance payment before shipment; must ship within 1 year or refund; document all advances as “export advance” in books
Import payments
Must be within FEMA-permitted timelines; Letter of Credit (LC), DA/DP terms as per trade agreement; remittance via AD bank only
Buyer’s credit for imports
Foreign currency import loans up to USD 50 million per transaction for up to 3 years for capital goods; 1 year for non-capital; with RBI guidelines
Factoring / export credit
Pre-shipment credit (packing credit) at concessional rates from banks; post-shipment credit against shipping documents
ECGC export insurance
Insure against foreign buyer payment risk, political risk, country risk. ECGC provides country-wise buyer exposure reports to banks and exporters.
15. June 2026 Key Updates
🆕 June 2026 Updates — DGFT & Customs:
Aadhaar-linked DGFT authentication mandatory: All DGFT applications (IEC modification, EPCG, AAS, RCMC updates) must use revamped DGFT portal with Aadhaar-linked login. Physical / postal applications discontinued.
Export obligation period reduced: Under both Advance Authorisation Scheme and EPCG: reduced from 18 months to 12 months for most sectors. Capital goods imports: still 18 months.
PSIC requirement: Imports of steel, aluminium, and certain electronics now require Pre-Shipment Inspection Certificate (PSIC) from DGFT-approved inspection agencies. Verify your import HS code for PSIC applicability.
GST-DGFT data sync (effective 1 July 2026): DGFT and GSTN integration enhanced for auto-verification of export incentive claims against GST filing data. RoDTEP claims reconciled with GSTR-1 export declarations automatically.
eBRC Mode of Export field: “Mode of Export of Services” mandatory in eBRC from 1 May 2025 for all services exports – physical/electronic/digital mode must be specified.
Annual IEC update deadline: 30 June 2026. Update profile on DGFT portal even if no changes – or IEC deactivated automatically.
RoDTEP Appendix 4R/4RE: Major Changes via Notification No. 15/2026-27 dated April 30, 2026; revalidate your product’s RoDTEP rate.
Export credit package: ₹7,295 crore interest subvention package for MSME exporters – check eligibility with AD bank for lower export credit interest rates.
16. Step-by-Step: First Shipment Export Guide
1
Get IEC – Apply on dgft.gov.in (₹500, 1-3 days). Register bank’s AD Code at your shipping port.
2
GST Registration + LUT – Register for GST if not already done. File LUT on GST portal (Form RFD-11) before first export.
3
Get RCMC – Register with relevant Export Promotion Council for your product category. Required for most FTP benefits.
4
HSN Classification – Verify 8-digit HSN for your product; check BCD (for imports), RoDTEP rate (Appendix 4R), any export restrictions.
5
Register on ICEGATE – icegate.gov.in; use IEC + PAN; obtain DSC (Class 3); register as exporter.
6
Prepare export documents – Commercial invoice, packing list, Bill of Lading (BL) / Airway Bill (AWB), Certificate of Origin, Phytosanitary/Quality certificates (if required).
7
File Shipping Bill on ICEGATE – Declare HSN, FOB value, GST LUT details, RoDTEP/Drawback claim intent. Customs examination → LEO (Let Export Order) → goods exported.
8
Realise export proceeds – Buyer pays within 9 months; bank generates eBRC; self-certify on DGFT portal. Claim RoDTEP credits and Drawback from ICEGATE.
9
File GST returns – Report export in GSTR-1 (zero-rated); claim ITC refund on inputs via Form RFD-01 on GST portal.
17. Step-by-Step: First Shipment Import Guide
1
Get IEC – Same as export; mandatory for all commercial imports.
2
Check import policy – Verify your product’s import policy on DGFT portal (Free / Restricted / Prohibited). Check for BIS Quality Control Order, anti-dumping duties, PSIC requirement (for steel/aluminium/electronics).
3
Calculate landed cost – CIF value + BCD + SWS (10% of BCD) + IGST. BCD and SWS are true costs; IGST is recoverable as ITC.
4
EPCG/AAS (if applicable) – Apply on DGFT before shipment if importing capital goods under EPCG or inputs under AAS. Cannot retroactively claim these benefits after goods arrive.
5
Register on ICEGATE – Same as exporter; required for Bill of Entry filing.
6
Appoint CHA (Customs House Agent) – Licensed CHA files Bill of Entry on your behalf; can handle examination, duty payment, release.
7
File Bill of Entry on ICEGATE – Before or on arrival; declare HS code, customs value, IEC, AD Code, import licence (if EPCG/AAS). Pay BCD + SWS + IGST online.
8
Out of Charge (OOC) – After customs clears → goods released. Take delivery from port/airport.
9
Claim IGST as ITC – IGST paid at import auto-reflected in GSTR-2B; claim as ITC in GSTR-3B for the month. Offset against GST output liability.
18. Practical Case Studies
Case 1: MSME Exporter Layering Multiple Benefits
GarmentCo (MSME, Surat) exports cotton garments. Annual export FOB: ₹5 crore. Uses imported fabric under Advance Authorisation. Has EPCG for cutting/stitching machines.
Benefit
How Used
Annual Benefit (est.)
Advance Authorisation
Import cotton fabric duty-free (BCD 10-12%); IGST exempt under AAS. 12-month obligation period (new).
BCD saving: ~₹8-10L on ₹80L fabric import
EPCG
Imported ₹30L cutting machines at 0% BCD (normal 7.5% = ₹2.25L saving). 6× obligation = ₹13.5L FOB exports in 6 years – easily achieved.
₹2.25L one-time saving
RoSCTL
Garment exporter claims RoSCTL (apparel-specific scheme for state + central levies); declared on Shipping Bill.
Approx 4-6% of FOB = ₹20-30L/year
GST LUT
Exports without paying IGST; claims ITC on inputs as cash refund.
ITC refund ~₹10-15L/year
Star Export House
After achieving USD 3M threshold: One Star Export House status → bank guarantee exemption in AAS/EPCG
Save bank guarantee costs + faster processing
Total annual benefit stack
₹40-58L in combined incentives/savings on ₹5Cr export
Case 2: IEC Annual Update Missed – Compliance Crisis
TechExport Pvt. Ltd. forgot to update IEC profile between 1 April and 30 June 2026. In July 2026, they have a ₹2 crore export shipment ready at port.
Problem: IEC automatically deactivated after 30 June non-update → Shipping Bill filing on ICEGATE rejected (invalid IEC) → export delayed at port → storage charges accumulate → customer delivery SLA breached → penalty from overseas buyer
Resolution: TechExport logged into DGFT portal → updated IEC profile (no changes, just reconfirmed) → IEC reactivated within hours → Shipping Bill refiled → goods cleared
Loss incurred: 3-day port storage charges (₹45,000) + customer penalty clause triggered (5% of order value = ₹10 lakh). Total damage: ₹10.45 lakh for 10 minutes of work that should have been done before June 30.
Lesson: Set a calendar reminder: IEC Annual Update — complete by 30 June every year, even if nothing has changed. GCA monitors this for all retainer clients.
19. Frequently Asked Questions
Q1. I sell handmade products on Etsy and ship internationally. Do I need IEC?
Yes – if you are shipping products internationally for commercial sale (even from India via courier), IEC is mandatory. Even small-scale handicraft sellers on Etsy, Amazon Global, or eBay who use India Post, DHL, FedEx, or other international shipping services need IEC. Apply online at dgft.gov.in for ₹500. Good news: small e-commerce courier exports under ₹25,000 per consignment can be cleared through simplified procedures (no formal Shipping Bill needed in some cases), but IEC is still required for the overall trade activity and for claiming any RoDTEP or LUT-based GST refund.
Q2. Can I claim both RoDTEP and Duty Drawback on the same export?
Yes – in most cases, you can claim both. In most cases, you can claim the All Industry Rate (AIR) of Duty Drawback along with RoDTEP, provided the Drawback rate doesn’t already account for the taxes covered by RoDTEP. Duty Drawback typically covers customs duty paid on imported inputs; RoDTEP covers other embedded taxes (electricity duty, mandi tax, fuel taxes at state level, stamp duty etc.) that are NOT covered by Drawback. Since they cover different taxes, they are not mutually exclusive. Declare both on your Shipping Bill at the time of export. Calculate both rates using Appendix 4B (Drawback) and Appendix 4R/4RE (RoDTEP) for your specific HSN code to maximise your benefit. GCA can calculate the optimal benefit for your product.
Q3. What is the export obligation period for EPCG now in 2026?
Under EPCG schemes, the time to fulfill export commitments has been reduced from 18 months to 12 months for most sectors. The overall export obligation (6× the duty saved in FOB exports) must still be met within 6 years from the date of issue of the EPCG Authorisation – this 6-year period hasn’t changed. What changed is the “obligation period” for completing EPCG application processing and commencement of exports – reduced to 12 months for most sectors. Capital goods-related obligations may still have 18-month provisions. Verify the specific terms in your EPCG Authorisation. Non-fulfillment of the 6× export obligation at the end of 6 years → pay customs duty on the capital goods imported + 15% interest p.a. from the date of import.
Q4. How do I claim IGST refund on exports?
Two routes: (1) LUT Route (Preferred): File LUT on GST portal (Form RFD-11) before exporting. Export without paying IGST. Accumulated ITC on inputs is refunded as cash via Form RFD-01 filed on GST portal. The refund is auto-processed based on GSTR-1 export declarations and GSTR-3B ITC data – typically 30-45 days if filed correctly. (2) IGST Paid Route: Export after paying IGST on the invoice value. The IGST paid is refunded based on shipping bill data shared between ICEGATE and GSTN – visible in your IGST refund status on the GST portal. Route 1 (LUT) is preferred as it avoids cash lock-up in IGST payment. File your LUT at the start of each financial year – it is valid for the entire year.
Q5. What happens if export proceeds are not received within 9 months?
Under FEMA, export proceeds must be realised and repatriated to India within 9 months of shipment. If proceeds are not received within 9 months: (a) Apply to your AD bank for an extension – most banks can grant extensions for genuine commercial reasons; (b) AD bank reports overdue export proceeds to RBI after the deadline; (c) FEMA compounding: if proceeds are not received and no extension is obtained → compounding with RBI (self-declaration of violation, payment of prescribed amount, regularisation); (d) IEC may come under watch list for trade policy compliance; (e) eBRC cannot be generated without realisation → impacts future incentive claims. For genuine payment disputes with foreign buyers: document all correspondence, dispute resolution steps, and apply for RBI extension. For exports where the foreign buyer is defaulting: ECGC insurance claim can be filed.
GCA provides end-to-end export-import support – IEC registration and annual updates, RCMC with relevant Export Promotion Council, GST LUT filing and ITC refund claims, RoDTEP rate calculation and ICEGATE claim management, Advance Authorisation applications, EPCG licensing and obligation tracking, Duty Drawback claims, eBRC certification, FEMA trade compliance, and Star Export House applications. Whether you are a first-time exporter or a large enterprise optimising incentive stacks – GCA handles the complexity. Pan-India, 100% digital.
Disclaimer: Educational purposes only. Based on Foreign Trade Policy 2023-28, DGFT Notifications/Public Notices, Customs Act 1962, Customs Tariff Act 1975 (as amended by Finance Act 2025), CGST Act 2017, FEMA 1999, and FEMA trade regulations as available up to May 2026. IEC annual update deadline 30 June 2026 per DGFT guidelines. Duty Drawback rates from Ministry of Finance. AEO programme from CBIC. Star Export House criteria from FTP 2023-28. Schemes, rates, and deadlines change – always verify current status on dgft.gov.in, icegate.gov.in, and cbic.gov.in before acting.
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