Difference between SOFTEX and GR forms

 

The information provided here is part of Import Export course online


 Difference between GR and SOFTEX forms

 

GR forms and SOFTEX forms are used by Reserve bank to monitor inward and outward remittance of a country on foreign exchange earnings. However, how differs SOFTEX form with GR forms.

 

What is GR form and how does it work?

 

GR.forms are issued by Reserved Bank of India to regulate and monitor foreign exchange transactions against export of goods under physical forms. Exporter has to collect blank GR.forms from RBI. The forms are in duplicate. Exporter had to sign both copies and arranged to deliver to Customs House Agents for filing with customs. While filing shipping documents by customs house agents, a Xerox true copy of shipping bill to be impressed on the GR.form. Once customs formalities completed, original GR form is submitted with customs and duplicate copy of GR. sends back to the exporter. Exporter submits duplicate GR form with their bank along with other shipping documents. Exporter’s bank sends back the said duplicate GR form to RBI for foreign exchange regulations. Customs department also sends back the original GR copy to RBI. PP form is used, if shipment by Post office. After introduction of online filing of shipping bill for export where in electronic filing system is available (EDI) , these procedures have been waived off by Reserve Bank of India as such GR details are electronically transferred from customs department to Reserve bank directly. However, GR forms are mandatory at export customs locations where EDI facility is not available.Difference between SOFTEX and GR forms

 

How SOFTEX form works?

 

SOFTEX forms are to be filed with STPI to regulate inward outward remittance by Reserve Bank under export of goods in non-physical form, either domestic or offshore. The products includes computer software, export of Video and TV software and all other types of software products and packages which are falling under goods of non physical form.

 

SOFTEX form is issued by Reserve Bank foreign exchange department. All software forms under STP units are eligible to obtain SOFTEX forms from Foreign exchange department of Reserve bank once after submitting self-certified copy of overseas buyer’s contract/purchase order or work order with STPI office as per 7(a) of SOFTEX form for declaration. SOFTEX forms are issued in triplicate. These SOFTEX forms are to be submitted by STP units within 30 days of issue of export invoice or within 30 days of last invoiced released in a month. Once exports effected, after necessary certification by STPI director’s office, the said SOFTEX forms are sent to Reserve bank. SOFTEX blank forms are obtained from foreign exchange department of Reserve bank by the STP units in triplicate. Once after effecting sales, the said SOFTEX forms in triplicate are submitted with STPI for necessary approval / endorsement by director of STPI under the jurisdiction of STP units. After certification of three copies of SOFTEX forms, original and duplicate are returned to STP units and triplicate copy is retained by STPI units. Once after exports effected, the duplicate copy of SOFTEX form is submitted with authorized dealer bank along with the necessary supporting documents. Original SOFTEX form is submitted with Reserve Bank’s exchange control department within the jurisdiction of STP unit. Once after receipt of foreign exchange under the said SOFTEX form, authorized bank returns the said duplicate copy of SOFTEX form to Reserve Bank.  Also read Difference between BRC and FIRC   Difference between EP copy and EC copy of shipping bill

 

I hope, I could explain SOFTEX and GR  in simple language to make you easy understand.

 

Would you like to share your experience and thoughts on GR and SOFTEX?

 

The above information is a part of Online Export Import course 


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Write below your comments about SOFTEX and GR.

 

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Comments


CA Alpa S Jain: I had a query regarding STPI registration. Is it compulsory to get registration under STPI if one is into export of Management consultancy services.Can softex forms be submited even if not registered with STPI

sridhar: I am new to export and imports business, i found an opportunity and exploring this challenge.I have an export inquiry where buyer and consignee are from different countries. i.e inquiry is for goods to be shipped from India to Havana but the buyer is from Vietnam. 1. The buyer is from Vietnam 2. Consignee is from Havana 3. Goods to be shipped/ exported from India In this scenarios, If payment terms is a. 100% advance b. Through L/C then my query is a. How should I prepare export documents ? b. What documents are to be prepared? c. In preparing commercial invoice, How should i prepare it? Do i have to mentioned both buyer and consignee details? if so, How? d. To whom should I send the commercial invoice documents? Buyer or consignee. e. How should i assure my buyer (Vietnam) that i will not entertain his buyer (Consignee) f. Can I hide shipper / consignor details to the consignee, if the buyer is different? if Yes, then please explain me the procedure.

Admin: Hello Sridhar, Please read posts in this website about TRIANGULAR SHIPMENTS PROCEDURES

Admin: Hello Sridhar, Please read posts in this website about TRIANGULAR SHIPMENTS PROCEDURES

srivatsan: CAN A BANKER HANDLE EXPORT BILLS WHEN ADVANCEPAYMANT ON EXPORT RECEIVED IN EURO AND EXPORTS TAKES PALCE TO IRAN . AN Y RESTRICTION PL SOMEBODY CLARIFY

Admin: srivatsan, Normally bank does not have much role to send original export documents to buyer's bank. However, most of the banks supports their customers (here, exporter) to send original documents to buyer's bank on request by exporter against a nominal bank charges with courier charges.

Rajeev Menon: Do I submit GR or Softex for my work which involved exporting a programmed PLC(Programmable Logic Controller) as per clients requirement. After writing the software code, I delivered/ exported to client by courier service. Now which form should I submit to my bank for inward remittance? I am a freelance programmer and running the company alone (self-employed). Please advise.

Nitesh Ashra: I received certain inward remittances wherein he mentioned the purpose as Advance(P0103), but these pertained to Export Proceeds (0102). I need to regularize the transaction by submitting the export documents. My bank is saying i need to write to RBI for change in purpose code as this has already been reported in their R-returns and XOS. Please guide as to what should i do?

TeamDigitalVFX vfx solution providers : Sir am having some query regarding submitting softex form. I'm doing small scale 'media & entertainment' business. Our auditor from karur Tamilnadu where we registered our company. This industry is very new to him and he is having lack of knowledge with softex. But he is trying to get information about submitting softex form from some of seniors from chennai. I have found your webpage while i searching on google. Can you explore the steps to submit softex form.

Mehul Patel: I made an esport in 2013 and 2014 through post. during that period post or customs authorities did not ask anything about GR OR EDF form. I received that payment in 2015. now bank is demanding the same. What should be done. Thankyou

Manish Shukla : One of my client based on mumbai is in the business of software development and exporting it. Some payments from foreign client is being received but bank asks for Softex form and STPI registration. Sir my Question are: - What is softex forms? Is it mandatory to get STPI registration and How? Import Export code is mandatory?

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