What Mistakes Do Exporters Make When Receiving International Payments?

Exporters make mistakes because one payment touches three rule sets: GST on the invoice, FEMA on the bank receipt and tax on the income. A step done correctly under one set can still fail under another. The mistakes below follow the order in which a payment moves.

• Invoice stage: The invoice must carry the Rule 46 particulars and the export endorsement, and is issued within thirty days of supply for services (Rule 47).
• Bank stage: An AD bank credits an export receipt only after it is satisfied the transaction is genuine (Regulation 4(2)), so missing details can hold the credit.
• Deadline stage: Services exports must be realised within nine months of the invoice, or twelve months if invoiced or settled in rupees, unless the AD bank extends the period (Regulation 5(1)).
• Record stage: The AD bank reports foreign exchange transactions with purpose codes (Circular No. 84, para 3), and the books must match the amount actually received.

The list below covers the mistakes in that order. For a first export, the export payment collection checklist for first-time exporters gives the same steps as a checklist.

Every exporter who receives foreign payments can make these mistakes, but the exposure differs. First-time exporters miss paperwork, high-volume exporters lose track of entries, and exporters with long payment terms risk the realisation deadline. The table shows who is exposed to which mistake.

An exporter avoids these mistakes by following one sequence for every payment: invoice correctly, share complete bank details, file the EDF, reconcile the receipt and close the entry. The steps below put the common mistakes into a routine you can repeat.

1. Before the first invoice of the financial year, furnish the LUT if you export without paying IGST (Rule 96A(1)). See LUT filing on the GST portal.
2. Issue the invoice within thirty days of supply with every Rule 46 field and the export endorsement (Rule 46).
3. Send the client your exact account name, account number, SWIFT code and the correspondent bank details that your bank lists. See how to share bank details with foreign clients safely.
4. State on the invoice or contract who bears bank charges, and ask the client for the payment reference or UETR when they send the money.
5. Submit the EDF to your AD bank within 30 days from the end of the invoice month (Regulation 3(2)).
6. When the credit arrives, compare it with the invoice, note the bank and intermediary deductions, and keep the bank advice or FIRA with the invoice.
7. Check that the AD bank has closed or updated the EDPMS entry. For invoices up to Rs 10 lakh, closure can be on your declaration (Regulation 4(2)). See EDPMS closure.
8. Diarise the nine-month date for each unpaid invoice and ask your AD bank about an extension before it passes. See extension of the export realisation period.

Five items prevent most problems: a correct invoice, an LUT on file, accurate bank details, the EDF and a reconciled bank advice. The table lists each item with the rule behind it and the mistake it prevents.

The consequences range from a bank query to a GST penalty or a restriction on future exports. Most are avoidable if the issue is spotted early. The list shows what each kind of mistake can lead to.

• GST penalty: Supplying without an invoice or with an incorrect or false invoice attracts a penalty of Rs 10,000 or the tax evaded, whichever is higher (section 122(1)(i)).
• LUT tax: If payment for services under an LUT is not received within one year or the FEMA period, whichever is later, the exporter pays the tax with interest within fifteen days (Rule 96A(1)(b)).
• Open EDPMS entry: An unrecorded shortfall can keep an entry open until the AD bank records a reduction or closure. See export proceeds not realised.
• Export restriction: Proceeds unrealised for over one year after the due or extended date mean further exports only against full advance or an irrevocable letter of credit (Regulation 13).
• Refund figure: For a GST refund, turnover of zero-rated services is the aggregate of payments received in the period (Rule 89(4)(D)), so an unreconciled receipt can change the claim.

Contact your AD bank early, share the invoice and bank advice, and ask what it needs to close or amend the entry. Ask a chartered accountant about GST corrections. See short realisation of export proceeds.

Each mistake has a date after which it becomes harder to fix. The table lists the trigger, the due date and where the step is filed, so that you can set reminders.

• No LUT: Issuing export invoices without furnishing the LUT first, when the plan is to export without paying IGST.
• Wrong invoice: Leaving out the export endorsement, the country of destination or a unique serial number.
• Late invoice: Raising the invoice months after the work, which moves the EDF and realisation dates.
• Missed EDF: Forgetting the EDF for services, due within 30 days from the end of the invoice month.
• Name mismatch: Giving a trade name that differs from the bank account name, so the bank cannot match the payment.
• Missing correspondent: Not sharing the correspondent bank details that the receiving bank lists, so the wire passes through extra banks.
• Silent charges: Not stating who bears bank charges, then finding a smaller credit than the invoice. SWIFT says its GPI tracker shows fees charged at each stage (see SWIFT GPI).
• Open entries: Leaving EDPMS entries open after a short receipt, with no declaration or reduction request.
• Vague purpose: Sending money with no invoice reference, so the bank asks for details before assigning a purpose code.
• Ignoring the deadline: Treating the payment date as the start of the clock when for services the period runs from the invoice date.

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

1. CGST Rules, 2017: Rule 46 (Tax invoice), Clauses (a) to (s); export proviso; electronic invoice signature proviso (checked 9 Oct 2026)
2. CGST Rules, 2017: Rule 47 (Time limit for issuing tax invoice), Thirty days from the date of supply of service (checked 9 Oct 2026)
3. CGST Rules, 2017: Rule 96A (Export under bond or Letter of Undertaking), Sub-rule (1) (checked 9 Oct 2026)
4. CGST Act, 2017: Section 122 (Penalty for certain offences), Sub-section (1), clause (i) (checked 9 Oct 2026)
5. IGST Act, 2017: Section 2 (Definitions), Clause (6) (checked 9 Oct 2026)
6. FEMA (Export and Import of Goods and Services) Regulations, 2026, Notification FEMA 23(R)/2026-RB, amended up to 22 September 2026, Regulations 3(2), 4(2), 5(1), 6, 13, 19 (checked 9 Oct 2026)
7. RBI A.P. (DIR Series) Circular No. 84, RBI/2011-12/413: Compilation of R-Returns: Reporting under FETERS, 29 February 2012, Paragraph 3: purpose codes for all foreign exchange transactions (checked 9 Oct 2026)
8. RBI circular RBI/2026-27/08: Guidelines to facilitate faster cross-border inward payments, 9 April 2026, Paragraphs 2, 3 and 4 (checked 9 Oct 2026)
9. Swift GPI product page, Pay and trace; payment confirmations (UETR) (checked 9 Oct 2026)
10. DGFT FAQs on Self Certification of eBRC, Q20 and Q22 (checked 9 Oct 2026)
11. CGST Rules, 2017: Rule 89 (Application for refund), Rule 89(4)(D) (checked 9 Oct 2026)