What Should a First-Time Exporter Check Before Collecting an Export Payment?

An export payment collection checklist for first-time exporters is the list of registrations, documents and filings needed so that a foreign payment is received, reported and closed correctly. It follows one export from setup to the final proof of payment. Each item below links to the rule behind it.

• IEC: No export of goods may be made without an Importer-Exporter Code unless exempted. For services, IEC is needed on the date of rendering services only to claim Foreign Trade Policy benefits (FTP 2023, para 2.05(a)).
• GST: Exports count in aggregate turnover (CGST Act, section 2(6)), and the general registration threshold is Rs 20 lakh a year, or Rs 10 lakh in special category States (CGST Act, section 22(1)).
• LUT: To export without paying IGST, a registered person furnishes a bond or Letter of Undertaking in FORM GST RFD-11 before export (CGST Rule 96A(1)).
• Invoice: An export invoice carries the endorsement for export with or without payment of integrated tax, plus the recipient's name and address, delivery address and country of destination (CGST Rule 46, proviso).
• EDF: Every exporter declares the full export value in the Export Declaration Form to the specified authority (FEMA Regulations 2026, Regulation 3).
• Bank route: Receipts from a person resident outside India must come through an authorised bank or authorised person (FEMA (Manner of Receipt and Payment) Regulations, 2023, Regulation 3(2)).
• Realisation: The full export value must be realised and repatriated within nine months from shipment for goods or from the invoice date for services (FEMA Regulations 2026, Regulation 5(1)).

The Master Direction on export and the SOFTEX circulars were superseded from 1 October 2026 by A.P. (DIR Series) Circular No. 20, so older checklists that mention SOFTEX forms or the caution list may be out of date. For the full document list, see the export documentation checklist.

Every person resident in India who receives payment for exporting goods or services needs this checklist, because FEMA section 8 requires foreign exchange due to a resident to be realised and repatriated. The items differ for goods and services exporters, mainly on IEC, the EDF route and customs filing.

A first-time exporter collects an export payment by finishing registrations before the first invoice, then declaring, receiving and closing each export. The steps below follow the order in which the rules apply. Your AD bank's own policy sets the documents and charges for each step under FEMA Regulation 19.

1. Choose an account with an authorised dealer (AD) bank that handles foreign exchange, and ask which branch processes export receipts. Receipts must come through an authorised bank or authorised person (Manner of Receipt and Payment Regulations, Regulation 3(2)).
2. Get an IEC from DGFT if you export goods, or if you plan to claim Foreign Trade Policy benefits for services. The IEC is the same as your PAN and is issued online (FTP 2023, para 2.05). See how to apply for an IEC code.
3. Check GST registration. Exports are included in aggregate turnover for the threshold (CGST Act, section 2(6)). See GST registration for exporters.
4. If registered and you want to export without paying IGST, file the LUT in FORM GST RFD-11 for the financial year before the first export invoice. On the portal, the path is Services, User Services, Furnish Letter of Undertaking (LUT) (GST portal user manual).
5. Agree the currency and payment terms with the buyer. For countries other than ACU members, export receipts may be in Indian rupees or any foreign currency (Regulation 3(2)(I)(a)(iii)).
6. Raise an export invoice with the Rule 46 endorsement and the buyer's details (CGST Rule 46). See export invoice format.
7. File the EDF: goods through the shipping bill at EDI ports, services with your AD bank within 30 days from the end of the invoice month (Regulation 3). See EDF form for exports.
8. Tell the buyer to pay into your bank account and give your bank the purpose of the receipt. Banks report every foreign exchange transaction with a purpose code in FETERS (A.P. (DIR Series) Circular No. 84; Regulation 18(2)).
9. When the money arrives, give the bank what it asks for to link the receipt to your invoice. The bank credits your account after checking the transaction is genuine and closes or updates the EDPMS entry (Regulation 4(2)).
10. Keep the bank's inward remittance advice or certificate, and generate an eBRC on the DGFT portal if you need one. DGFT's eBRC confirms that you received payment for the export (DGFT eBRC FAQ, Q1).

A first-time exporter should keep the registration records, the export invoice, the EDF or shipping bill, and the bank's proof of each receipt. GST refund claims for services need the invoice numbers with the matching bank realisation certificates or foreign inward remittance certificates under CGST Rule 89(2)(c).

Missing a step can leave an EDPMS entry open, make GST payable on an export, or lead to FEMA penalties. The most serious results follow when the export value is not realised in time. Most gaps can be fixed by filing late with the bank's permission or paying tax with interest.

• Late EDF: For services, the AD bank may extend the time to submit the EDF if you give reasons for the delay and it finds them reasonable (Regulation 3(2)(c)).
• Late realisation: The AD bank may extend the realisation period on your request if satisfied with the reasons (Regulation 5(1), second proviso).
• Future exports: If proceeds stay unrealised for more than one year from the due date or extended date, further exports are allowed only against full advance or an irrevocable letter of credit (Regulation 13).
• FEMA penalty: A contravention can attract a penalty up to three times the sum involved where quantifiable, or up to Rs 2 lakh where not quantifiable (FEMA, section 13(1)).
• GST on services: Under an LUT, if payment for services is not received in convertible foreign exchange or permitted INR within one year or the FEMA period, whichever is later, tax is payable with interest within 15 days (CGST Rule 96A(1)(b)).
• No LUT: Without an LUT or bond furnished before export, the route of exporting without paying IGST is not available (CGST Rule 96A(1)). Refund of IGST paid on zero-rated supplies is limited to classes of persons or supplies notified by the Government (IGST Act, section 16(4)), so check your position before invoicing.

Speak to your AD bank as soon as a payment is late or short. Under Regulation 6, the bank can allow a reduction in export value for reasons it accepts, and on exports up to Rs 10 lakh it can accept your declaration (FEMA Regulations 2026, Regulation 6). For extensions, see extension of the export realisation period.

The timeline for collecting an export payment starts with the LUT before the first export and ends with realisation within nine months. In between, the EDF is due at export for goods and within 30 days of the end of the invoice month for services. Your bank closes EDPMS entries as payments arrive.

• Late LUT: Issuing zero-rated invoices before filing the LUT for the year. Rule 96A requires the LUT prior to export (CGST Rule 96A(1)).
• Bare invoice: Leaving out the export endorsement, the recipient's address or the country of destination required by CGST Rule 46.
• Missed EDF: Assuming services need no export declaration. The EDF for services is due within 30 days from the end of the invoice month (Regulation 3(2)).
• Vague purpose: Not telling the bank what the receipt is for, so it is reported under the wrong purpose code. See RBI purpose codes for exporters.
• Split banks: Taking an advance through one bank and the balance through another without telling both banks (Regulation 10(1)).
• Old rules: Following a SOFTEX or caution list checklist written before 1 October 2026, when the 2026 Regulations and Circular No. 20 took effect.
• Lapsed IEC: Forgetting the yearly April to June IEC update, which leads to deactivation (FTP 2023, para 2.05(e)).

Every rule, deadline and form on this page is linked to its official source, checked on the dates below.

1. Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB, amended up to 22 September 2026), Regulations 1(2), 2(1)(f), 3(1), 3(2)(a)-(c), 4(2) and proviso, 5(1) and provisos, 6, 8, 10(1), 13, 18(2), 19 (checked 9 Oct 2026)
2. RBI A.P. (DIR Series) Circular No. 20 dated 16 January 2026: Export and Import of Goods and Services, Paras 4 and 7; Annex A list of superseded circulars (checked 9 Oct 2026)
3. Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, Regulation 3(2)(I)(a) (checked 9 Oct 2026)
4. RBI A.P. (DIR Series) Circular No. 84 dated 29 February 2012: Revised purpose codes for FETERS reporting, Paras 3 and 4 (checked 9 Oct 2026)
5. Foreign Exchange Management Act, 1999 (IFSCA copy), Sections 8 and 13(1) (checked 9 Oct 2026)
6. IGST Act, 2017, section 2 (CBIC tax information portal), Section 2(6), export of services (checked 9 Oct 2026)
7. IGST Act, 2017, section 16 (CBIC tax information portal), Section 16(1) and 16(3) (checked 9 Oct 2026)
8. CGST Rules, 2017, Rule 96A (CBIC tax information portal), Rule 96A(1)(a) and (1)(b) (checked 9 Oct 2026)
9. CGST Rules, 2017, Rule 46 (CBIC tax information portal), Proviso on export invoices (checked 9 Oct 2026)
10. CGST Rules, 2017, Rule 89 (CBIC tax information portal), Rule 89(2)(c) (checked 9 Oct 2026)
11. CBIC Master Circular on LUT and bond, 4 October 2017, Para 2(a) eligibility and 2(b) validity (checked 9 Oct 2026)
12. GST portal user manual: Furnishing of Letter of Undertaking, Steps 1 to 4 (checked 9 Oct 2026)
13. CGST Act, 2017, section 2 (CBIC tax information portal), Section 2(6), aggregate turnover (checked 9 Oct 2026)
14. CGST Act, 2017, section 22 (CBIC tax information portal), Section 22(1) and first proviso (checked 9 Oct 2026)
15. Foreign Trade Policy 2023, Chapter 2 (DGFT), Para 2.05(a), (d) and (e) (checked 9 Oct 2026)
16. Handbook of Procedures, Chapter 2 (DGFT), Para 2.07, IEC exempted categories (checked 9 Oct 2026)
17. DGFT Public eBRC FAQs, Q1, Q2 and Q29 (checked 9 Oct 2026)
18. Income Tax Department FAQ: Objective and scope of the Income Tax Act, 2025, FAQ 2, repeal of the 1961 Act on 01.04.2026 (checked 9 Oct 2026)