Simplifying GST Refund Challenges: How We Resolved a BRC Issue and Secured a Refund of ₹70 Lakhs

The GST refund process can always be demanding and stressful to businesses, mainly for exporters trading under the mechanism of "exports without payment of tax." Perhaps the most obvious challenge that numerous exporters face involves the need to obtain a Bank Realization Certificate, which they must submit while filing for a refund. A recent case fits this description, and we can proudly say it was turned into an excellent success story.

The Challenge: Missing BRCs for Export Refund Filing

One of our clients, a prominent exporter, faced significant roadblocks in claiming their GST refund due to missing BRCs and FIRCs (Foreign Inward Remittance Certificates). Without these crucial documents, filing the refund application was impossible. The situation became more pressing as the pending refund amount was substantial: ₹70 lakhs.

Why was this an issue?

• BRCs are required to prove that the export proceeds have indeed been realized.
• The process of acquiring BRCs is cumbersome and involves coordination with banks and submitting various supporting documents, among others.
• Many businesses are not aware that BRC generation is possible through the DGFT Portal, which is a lesser-known but effective solution.

Our Approach: Resolving the BRC Challenge

Determined to help our client, we followed a systematic and informed approach to address the issue:

• Analysis and Documentation: We began by understanding the client’s export transactions and gathering the necessary details, such as shipping bills, export invoices, and payment receipts.
• Ensuring Exports Compliance: Any Business owner who is in the export business must ensure that he is fulfilling all the compliance as Per FEMA and other export-related compliance, which may vary as per various Products and Services, In this case, the client was maintaining all the documents properly but there was one gap in the management of foreign remittances, We helped them manage the same to get all the exports benefits and helped them to establish proper communication with their bank.
• Coordination with Banks: As the first step, we reached out to the client’s bank to verify the receipt of export proceeds and requested the issuance of IRMs (Inward Remittance Messages).
• Leveraging the DGFT Portal: Using the IRMs, we initiated the BRC generation process via the DGFT Portal. The portal allows exporters to generate BRCs seamlessly, provided all the required data is accurately uploaded.
• Filing the Refund Application: Once the BRCs were generated, we compiled all the necessary documents and submitted the refund application to the GST department.

 Our strategic approach and timely action led to the successful filing of the client’s GST refund application. The result? A significant refund of ₹70 lakhs was credited to the client’s account, providing a much-needed boost to their working capital.

Key Takeaways for Exporters

This case highlights several important lessons for businesses involved in exports:

Understand the Importance of BRCs: Ensure timely generation and maintenance of BRCs for smooth refund processing.

Utilize the DGFT Portal: DGFT is now ensuring a smooth process for exporters and importers to get all the business-related documents. Now users can get various documents from the DGFT Portal itself.  

Seek Professional Assistance: GST refund processes can be complex. Engaging experts can save time, minimize errors, and ensure successful outcomes.

How We Can Help You

At MyGST Refund, we specialize in simplifying GST refund challenges, including issues related to BRC generation. Do you have missing BRCs or delayed processing of refunds? Our team will guide you at every step.

Facing similar challenges? Contact us today to resolve your GST refund issues and unlock the working capital you deserve.
info@mygstrefund.com |  +91 92050-0507