DGFT, GSTN sign pact for sharing forex, trade related data

NEW DELHI: To strengthen processing of export transactions of taxpayers under the Goods and Services Tax, the GST Network (GSTN) has signed a Memorandum of Understanding with Director General of Foreign Trade (DGFT) for sharing of foreign exchange realisation and Import Export code data.

The move is expected to “strengthen processing of export transactions of taxpayers under GST, increase transparency and reduce human interface,” said the commerce department in a statement on Friday.

The sharing of data pertains to Bank Realisation Certificate (BRC) which is issued by banks based on realisation of payment against export by an exporter. It is also used by state government departments for refund of VAT.

“In addition, it is an important economic indicator as it quantifies transaction level export earnings,” the commerce department said.

An electronic bank realisation certificate (eBRC) captures transaction level details of foreign exchange realised in India. The eBRC project implemented by DGFT created an integrated platform for receipt, processing and subsequent use of all bank realization related information by exporters, banks, central and state government departments.

So far 100 banks operating in India, including foreign banks and cooperative banks have uploaded more than 1.9 Crore e-BRCs on to the DGFT server. DGFT has signed MOUs with 14 state governments and 2 central government agencies for sharing of the data.