Identifiers · Glossary
FIRC (Foreign Inward Remittance Certificate)
Bank certificate confirming receipt of foreign currency payment.
FIRC is issued by banks (or AD-I authorised dealers) under the FEMA, 1999 framework when you receive a foreign currency payment. It documents the foreign sender, the INR equivalent credited to your account, the purpose code, and the FEMA compliance category. Required for: claiming export benefits, GST zero-rated supply, GST refund of unutilised ITC, RBI reporting.
Different from FIRA (Foreign Inward Remittance Advice — informal email) which is increasingly common for low-value receipts. Always request a formal FIRC for tax-relevant remittances above Rs. 1 lakh.
Worked example
Arjun receives USD 2,500 (≈ Rs. 2,07,500) from a US client. His bank issues an e-FIRC three weeks later with purpose code P0802 (computer services) and a unique FIRC number — required to substantiate the LUT-route zero-rated export on his GSTR-1 Table 6A.
Practitioner tip
Request the e-FIRC explicitly from your bank — it’s not auto-issued by most retail banks (HDFC / ICICI / Axis). Get it in writing within 30 days of credit; banks levy small fees (Rs. 200-500) that you can usually waive on relationship grounds.
Related glossary terms
- LUT (Letter of Undertaking) — Undertaking that lets exporters supply zero-rated GST services without paying tax.
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These definitions are educational. Tax laws change annually — verify with a Chartered Accountant before making GST or income-tax decisions.