Export of services: payment through rupee accounts and set-off accepted for GST
What changed. A supply is an "export of services" only if payment is received in convertible foreign exchange or in Indian rupees wherever permitted by RBI (section 2(6)(iv) of the IGST Act). CBIC has clarified:
- Payment received in convertible foreign exchange or in repatriable rupee accounts, such as a Special Non-Resident Rupee (SNRR) account, an INR Nostro account or a similar account, meets this condition.
- Stock brokers paid by overseas clients through SNRR or NRE accounts meet it. Payments from NRO accounts should be routed through SNRR or NRE accounts.
- Setting off export receivables against import payables meets it, as long as the set-off follows RBI's directions. The circular notes that the earlier set-off conditions do not apply from 1 October 2026 under the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026.
- Reinsurance brokers' commission settled by net retention is treated as received.
- For goods, the time for realising export proceeds under rule 96B is the period, with any extension, prescribed in RBI's FED Master Direction No. 16/2015-16, as amended. No refund is recovered where the AD bank has written off the requirement to realise.
Who it affects. Exporters of services and goods, including startups billing overseas clients, and exporters claiming GST refunds.
From when. The circular is dated 26 October 2026.
What to do. - Keep bank advices showing the account through which each export payment was received. - Document any set-off and the RBI provision it relies on. - For goods, track realisation against the RBI period and keep any AD bank write-off approval.
Official source: CBIC Circular No. 263/09/2026-GST dated 26 October 2026
This is general information based on the law as on the date shown, not professional advice. Rules change often; check the current position before acting.