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    GST / CBIC Circulars CGST

    GST rules on export payments in rupees and set-off, explained

    The CBIC has clarified that export payments received in rupee accounts or through set-off can count as export receipts under GST.

    Document
    Circulars CGST 263/09/2026-GST
    Dated
    26 Oct 2026
    Effective
    Clarificatory from issue date 26.10.2026. The FEMA set-off change applies from October 01, 2026. Other effective dates:
    Act by
    Goods exporters: within thirty days after the RBI realisation period ends, if money is not received.

    This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.

    The short version

    1. Service exports paid in rupees through approved accounts now qualify under GST.
    2. Export payments set off against import bills also count, if RBI rules are followed.
    3. From 1 October 2026, set-off no longer needs goods-for-goods or services-for-services matching.
    4. Payments from NRO accounts must go through SNRR or NRE accounts to qualify.
    5. Goods exporters must still bring sale money in on time, or repay GST refunds with interest.

    In short

    This circular from the Central Board of Indirect Taxes and Customs (CBIC) says how export payments must be received for a service to count as an export under GST. It clarifies section 2(6)(iv) of the Integrated Goods and Services Tax Act, 2017, which sets the test for an export of services. Many exporters asked whether rupee payments and set-offs qualify, and this circular answers that they can.

    What has changed

    How it worked before

    Earlier clarification (circular 202/14/2023-GST, dated 27.10.2023) covered only export payments in rupees received from Special Rupee Vostro accounts of partner-country banks. Other rupee routes and set-off were not clearly settled for GST purposes.

    What has changed

    Export payments in foreign currency, or in repatriable rupee accounts such as SNRR or Nostro, now count. Set-off of export receivables against import payables also counts, if RBI allows it. Stock brokers paid in rupees through SNRR or NRE accounts are covered. Reinsurance brokers' commission settled by net retention is also treated as meeting the test. For goods, the time limit for receiving sale money is now the RBI's own rule, not a separate GST one.

    Who this affects

    If you run a business registered under GST and sell services to customers abroad, this applies to you. This includes consultants, software firms, and stock brokers serving overseas clients. If you sell goods abroad and claimed a GST refund on them, the rules on receiving payment also apply to you.

    An example

    A Pune software firm exports IT services to a client abroad and is paid in rupees into an SNRR account. Under this circular, that payment counts as an export receipt for GST, so the firm does not lose its export status for that invoice. If the same client had paid from an NRO account, the firm would need the money routed through an SNRR or NRE account first.

    What you should do

    Service exporters should keep records showing that rupee or set-off receipts follow RBI rules. If your overseas client pays from an NRO account, route the payment through an SNRR or NRE account. Goods exporters should track RBI realisation deadlines so no refund needs to be repaid. No separate filing is stated in the circular.

    Deadline · Goods exporters: within thirty days after the RBI realisation period ends, if money is not received.

    If you do nothing

    The circular itself sets no penalty for not following it, and it is a clarification of existing law. For goods exporters, if sale money is not realised within the RBI period and is not written off, the GST refund already paid must be repaid with applicable interest. This must be done within thirty days after the period ends or any extension.

    The terms explained

    SNRR account
    A special rupee account for non-residents that lets money earned in India be sent abroad. It is a bank account type approved by the RBI.
    Nostro account
    A bank account an Indian bank holds in a foreign bank, or in rupees with a partner bank, used to settle payments.
    Set-off
    Settling what a foreign customer owes you against what you owe them, without sending money both ways.
    Net retention
    A method where a reinsurance broker keeps its commission from premium funds before sending the rest abroad.
    Realisation of export proceeds
    Bringing the money for an export into India within the time the RBI allows.

    The original document

    Issued byGST
    DocumentCirculars CGST 263/09/2026-GST
    Full titleClarification in respect of receipt of payment for export of goods or services.
    Issued on26 October 2026
    EffectiveClarificatory from issue date 26.10.2026. The FEMA set-off change applies from October 01, 2026. Other effective dates:
    Read the official release

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    Does this apply to me if I export services?

    Yes, if your business is registered under GST and you are paid by customers abroad. The circular says rupee payments through approved accounts, and set-off within RBI rules, count as export receipts.

    From when does this apply?

    The clarification applies from the issue date, 26.10.2026. The change on set-off under the new FEMA export and import rules applies from 1 October 2026.

    What happens if I do nothing?

    The circular sets no penalty for ignoring it. Goods exporters who fail to receive sale money in time may have to repay GST refunds with interest, within thirty days of the deadline.

    Do I have to file anything because of this?

    The circular states no separate filing. It asks that trade notices be issued to publicise it, and it asks that any difficulty in applying it be reported to the Board.