In a recent update, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 12/2024 – Central Tax dated July 10, 2024, which brings significant changes to the timelines for receiving export payments under the CGST Rules. This modification, exercised under the powers conferred by Section 164 of the CGST Act, aims to streamline export operations and provide greater flexibility to exporters.
Key Changes in Rule 96A(1)(b) of the CGST Rules
Before Amendment
The previous clause (b) in sub-rule (1) of Rule 96A mandated that if the payment for exported services was not received in convertible foreign exchange or in Indian rupees, wherever permitted by the Reserve Bank of India, within fifteen days after the expiry of one year from the date of invoice issuance, exporters were required to adhere to strict compliance protocols. This period could be extended only by the Commissioner.
After Amendment
The amended clause (b) now reads:
"fifteen days after the expiry of one year, or the period as allowed under the Foreign Exchange Management Act, 1999 (42 of 1999) including any extension of such period as permitted by the Reserve Bank of India, whichever is later, from the date of issue of the invoice for export, or such further period as may be allowed by the Commissioner, if the payment of such services is not received by the exporter in convertible foreign exchange or in Indian rupees, wherever permitted by the Reserve Bank of India."
Official copy of the notification has been attached
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