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Is FIRC mandatory for GST refunds?

Is FIRC mandatory for GST refunds?

What is FIRC and is it mandatory for GST refund?

FIRC also known as a Foreign Inward Remittance Certificate is a document that is issued by banks to companies or any person who attempts to receive money from a foreign country. It Is proof of a foreign transfer into India. Hence when claiming GST refunds for exported goods where the payment is received from overseas an FIRC is mandatory for GST refunds.

What does the FIRC contain?

A FIRC or a Foreign Inward Remittance Certificate, includes all the details required to claim GST refunds. It includes the beneficiary’s name and address, the amount being paid, the currency, and the transaction date.

Why are FIRCs mandatory when claiming GST refunds?

The GST authorities in India are required to verify the authenticity of the FIRC and can thereafter proceed to carry on with the GST tax refund process if the transaction is an overseas one.

Procedure to obtain a FIRC

The procedure to obtain a FIRC in India for your tax refund process is not very complicated and can be done in a couple of steps. They are as follows-

  1. Furnish the bank with the requisite information concerning the inward remittance, encompassing the purpose of the transaction, the amount involved, and the name and address of the remitting party.

Ensure to present all pertinent supporting documents, such as invoices, purchase orders, or contracts about the inbound remittance, to the bank.

  1. Upon receiving the remittance, proceed to request the bank to issue a Foreign Inward Remittance Certificate (FIRC). The bank will carefully verify the provided details before issuing the certificate.

  1. Once the FIRC is issued, collect it from the bank. The certificate will contain essential particulars, including the beneficiary's name and address, the amount and currency of the inward remittance, as well as the transaction date.

It is imperative to securely retain the FIRC for various purposes, notably for claiming GST tax refunds and any other relevant matters.


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