Query on Inward Foreign Remittance Closure for Ecommerce - Payment Through Payment Gateway and CSB 5

Query on Inward Foreign Remittance Closure for Ecommerce - Payment Through Payment Gateway and CSB 5

We are looking to do Ecommerce export where shipment will be low value (Starting at Rs.1000-2000 per shipment) and done through CSB5 mode. Payment will be received through Payment gateway such as Paypal etc.. Our queries are as follows:

1. As per RBI guidelines in our case is it mandatory for us to get an e-BRC/GR Regularization or any other certificate issued by the bank that indicates that entry has been closed in order to comply with RBI guidelines?

2. If so in case of CSB5 will the transaction reflect in the EDPMS system? Is it possible for the bank to close the entry?

3. We understand that payment gateways issue an NOC/ FIRC everytime our funds are credited into our India bank account from our Payment gateway. Is this correct?

4. Since export value is very low how do we save on banking costs as banks are quoting very high charges for Regularization/Realisation. And they claim same needs to be done for every shipping bill and not every FIRC

Will really appreciate your kind support to clarify the above.

Best Regards

Asked 4 years ago in GST

I think E-BRC is just there if you wish to claim any benefit of export scheme other than that its not required.

I am not too aware about your second question but I dont think CSB 5 data reflect in EDPMS system.

The payment gateway like transferwise only issue FIRC for receiving payment for you from outside India and not while depositing amount from transferwise to your bank as it would be inward remittance for them when they receive payment.

I don't think inward remittance cost is such high as we are handling tax for some service exporter and their remittance cost is not much.

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Thank you.

Naman Maloo

CA, Jaipur

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ear Sir,

Hope you are doing well !!

1. No, it is not mandatory.

However, if you want to claim export benefits, it would be required.

2. No.

3. FIRC (Foreign Inward Remittance Certificate) refers to a document which acts as a testimonial for all the inward remittances entering to India.

4. Need to check the same with banks.

However, the charges are not that high.

Payal Chhajed

CA, Mumbai

5189 Answers

302 Consultations

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It is advisable to take assitsant from local professional.

Karishma Chhajer

CA, Jodhpur

2452 Answers

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