GSTN-DGFT pact for reduced human interface in transactions

The Goods and Services Network (GSTN) has signed a Memorandum of Understanding (MoU) with Director General of Foreign Trade (DGFT) for sharing of foreign exchange realisation and import export code data, a move that is expected to strengthen processing of export transactions of taxpayers under GST, increase transparency and reduce human interface.

The MoU was signed by Ajay K Bhalla, Director General of Foreign Trade and Prakash Kumar, CEO, GSTN. An electronic bank realisation certificate (e-BRC) project implemented by DGFT created an integrated platform for receipt, processing and subsequent use of all bank realisation related information by exporters, banks, central and state government departments. 

The e-BRC project enabled banks to upload foreign exchange realisation information related to exports on to the DGFT server under a secured protocol, the finance ministry said. It captures transaction level details of foreign exchange realised in India.

So far 100 banks operating in India, including foreign and cooperative banks have uploaded more than Rs 1.9 crore e-BRCs on to the DGFT server.

The ministry said that e-BRC has helped significantly reduce the transaction cost for exporters. A Bank Realisation Certificate (BRC) is required for discharge of export obligation and claiming of incentives under Foreign Trade Policy.

DGFT has signed MOUs with 14 state governments and two central government agencies for sharing of the data.

 The states which have singed e-BRC with the DGFT for VAT refund purposes are — Maharashtra, Delhi,  Andhra Pradesh, Odisha, Chhattisgarh, Haryana, Tamil Nadu, Karnataka, Gujarat, Uttar Pradesh, Madhya Pradesh, Kerala, Goa and Bihar.