How to start an export business in India in 2026: IEC, GST and a 9-month clock to get paid

The registrations are online and the official fees are small. What catches new exporters is cash flow: from 1 October 2026, export proceeds must be realised within nine months of shipment, or twelve if invoiced or settled in rupees.

By Rahul, Director30 October 202612 min read

On this page

How do you start an export business in India, step by step?
What changed for new exporters in 2025 and 2026?
Which registrations do you need, and what do they cost?
Do you need an RCMC to start exporting?
Do you pay GST on exports?
How long do you have to get paid under the new FEMA rules?
What does it take to export to the UK under the new trade agreement?
Can you sell abroad without exporting yourself?
Which dates and deadlines should a new exporter diary?
What should be on your set-up and shipment checklist?
Questions exporters ask
Sources

At a glance

To realise export proceeds after shipment, from 1 October 2026: 9 months
Official fee for an IEC application on the DGFT portal: ₹500
Window to update your IEC every year, or DGFT deactivates it: 1 Apr-30 Jun
Provisional GST refund within 7 days on claims rated low-risk (from 1 Oct 2025): 90%

Bottom line: The registrations are the easy part: GST, an IEC you update every April to June, an LUT each financial year and an RCMC only when you need one. Build your payment terms around the nine-month rule and confirm them with your AD bank.

In short

To export goods commercially from India you generally need GST registration and an Importer-Exporter Code (IEC), which must be updated online every year between 1 April and 30 June.
An RCMC is not always required. You need one for Foreign Trade Policy benefits on consignments above ₹3 lakh FOB, and for any purchase at the 0.1% merchant-exporter GST rate, but not to claim RoDTEP or Duty Drawback. APEDA and Spices Board registration apply under their own laws.
Exports are zero-rated for GST: ship under a Letter of Undertaking (LUT, form RFD-11, filed each financial year) or pay IGST and have it refunded through the shipping bill. Since 1 October 2025 the GST system risk-rates refund claims: low-risk claims get a provisional order for 90% within seven days, while other claims go to detailed scrutiny without a provisional payment.
Under the FEMA export regulations in force from 1 October 2026, the full export value must be realised within nine months of shipment, or twelve if invoiced or settled in rupees. Confirm the details with your AD bank.
For UK buyers, certificates of origin under the UK-India trade agreement are issued on DGFT's Trade Connect platform, and a self-declared certificate carries no fee. It is one of several ways the UK importer can prove Indian origin.
If you would rather not ship yourself, you can supply a merchant exporter, which handles the IEC, customs, proof of origin and collecting payment.

How do you start an export business in India, step by step?

Starting to export from India is mostly online registration, then careful paperwork on every shipment. The order below follows the DGFT Handbook of Procedures and the GST and FEMA rules in force on 30 October 2026.

1
Set up the business
Choose a structure (proprietorship, partnership, LLP or company) and open a current account in the business name. The IEC application needs a cancelled cheque with the entity's pre-printed name, or a bank certificate, and proof of address.
2
Pick a product and a market
Use dated trade figures, not lists of "hot products": the Commerce Ministry's Export Import Data Bank (tradestat.commerce.gov.in) shows India's exports by HS code and country, and HMRC's uktradeinfo shows what the UK imports. Check on the DGFT website that export policy for your HS code is "Free", then check the buyer country's duty, origin and product-safety rules. Our guide to Indian products in demand in the UK works through the UK data.
3
Find a buyer and price the quote
Shortlist buyers through trade fairs, your export promotion council's events and buyer directories, and send samples before a first order. Price on an agreed Incoterm with every cost line counted, from packing and inland haulage to freight and, if you sell DDP, the destination country's import charges.
4
Register for GST and file your LUT
The IGST Act treats exports as inter-State supplies, so goods exporters generally need a GSTIN. If you will export without paying IGST, submit form RFD-11 on the GST portal before your first export and again each financial year. Exports of GST-exempt goods, such as fresh mangoes, need no LUT.
5
Apply for your IEC
File form ANF-2A on dgft.gov.in with the fee. The IEC is auto-generated and downloadable from your dashboard. Diary the 1 April to 30 June annual update.
6
Add product licences, and an RCMC if needed
Food exporters need an FSSAI Central Licence, and exporters of APEDA-scheduled products, such as fresh fruit and honey, must register with APEDA. Spices, tea, honey and plant products have further registrations of their own. Take an RCMC only where a rule requires one.
7
Link your bank and signature
Register your AD-code bank account on ICEGATE for each port. Link a digital signature certificate (DSC) to your IEC: self-declared certificates of origin for the UK need it.
8
Agree terms and ship
Fix the Incoterm, currency and payment terms. Prepare the invoice, packing list and proof of origin. Your customs broker files the shipping bill on ICEGATE and customs issues the Let Export Order.
9
Get paid and close the file
Collect the full value through your AD bank within nine months of shipment (twelve if invoiced or settled in rupees), generate the e-BRC on DGFT once the bank reports the remittance, and claim any GST refund.

You do not have to do all of this yourself. A manufacturer, farmer producer organisation or small business can sell to a merchant exporter, which ships under its own IEC. That route is explained further down.

What changed for new exporters in 2025 and 2026?

Check any older guide against these five changes, which matter to anyone registering now.

Date	What changed	What it means for you
1 Oct 2025	Provisional 90% refunds on zero-rated claims now decided by system risk rating	Claims not rated low-risk get no provisional refund and are scrutinised in full
15 Jul 2026	UK-India trade agreement (CETA) in force; UK-bound certificates of origin issued on DGFT Trade Connect	Self-declared certificates are free
15 Sep 2026	Foreign Trade Policy benefits on a consignment up to ₹3 lakh FOB no longer need an RCMC	Small first shipments can skip the RCMC; GST and APEDA rules are unchanged
30 Sep 2026	RoDTEP export incentive extended to 31 December 2026 at unchanged rates	Claim it on exports made by 31 December 2026; no RCMC needed
1 Oct 2026	New FEMA export regulations: realise proceeds within 9 months (12 if invoiced or settled in rupees), not the 15 months allowed by a November 2025 relaxation	Set payment terms well inside 9 months; ask your AD bank how earlier shipments are treated

Which registrations do you need, and what do they cost?

The table shows official fees only. Brokers, consultants and certifying authorities charge their own prices.

Registration	Where	When you need it	Official fee and term
GST registration	gst.gov.in	Goods exporters, as exports are inter-State supplies	See gst.gov.in
IEC	dgft.gov.in, form ANF-2A	Every commercial export	₹500; annual update free
LUT	GST portal, form RFD-11	To export taxable goods without paying IGST	No fee stated; file each financial year
RCMC	Export promotion council for your main product, or FIEO	FTP benefits above ₹3 lakh FOB; buying at 0.1% GST	Varies by council; 5 years
APEDA registration	DGFT e-RCMC portal	Exporters of APEDA-scheduled products, such as fresh fruit and honey	₹5,900 incl. GST; 5 years
FSSAI Central Licence	FoSCoS	Any food exporter, including traders	₹7,500 a year
Self-declared CETA certificate of origin	trade.gov.in	UK shipments where the buyer wants a certificate to claim 0% duty	Nil; needs an IEC-linked DSC

The IEC has permanent validity. It is issued against a PAN, one per PAN, so a sole proprietor applies with their own PAN. It is never renewed, but it must be updated or confirmed online every year between 1 April and 30 June, even if nothing has changed, or DGFT deactivates it. In September 2025 an export promotion council told members that DGFT's Mumbai office had identified about 59,000 IECs for deactivation for missing the update.

Do you need an RCMC to start exporting?

No, not always. A Registration-cum-Membership Certificate (RCMC) comes from the export promotion council for your main line of business, on form ANF 2C. If no council covers your product, or you are a multi-product exporter whose main line is not yet settled, you can take it from FIEO. It is valid for five years, and changes of name, address or ownership must be reported within one month.

You need one to apply for an authorisation or any other benefit or concession under the Foreign Trade Policy (para 2.57).
You need one to buy at the 0.1% merchant-exporter GST rate, which requires council or board registration.
You do not need one to claim Duty Drawback, RoDTEP or RoSCTL (DGFT Trade Notice 19/2024-25).
You do not need one for Foreign Trade Policy purposes on a consignment with FOB value up to ₹3 lakh (DGFT Notification 36/2026-27, 15 September 2026). It says nothing to relax the GST condition for 0.1% purchases, or APEDA, Spices Board or Tea Board registration, which come from other laws.

Farm and food products differ. APEDA registration is a separate legal requirement: under section 12 of the APEDA Act 1985, anyone exporting a scheduled product, such as fresh fruit and vegetables, honey, cereal products or processed foods, must apply to register within one month of the first export, whatever the consignment value. The ₹3 lakh exemption changes only the Foreign Trade Policy rule. APEDA registration costs ₹5,900 including GST and is valid for five years. Our RCMC guide explains which council applies.

Do you pay GST on exports?

IGST charged on goods exported under an LUT: 0%
Provisional refund on claims the system rates low-risk, filed from 1 October 2025: 90%
GST a supplier may charge a registered merchant exporter: 0.1%
Time to export goods bought at the 0.1% rate: 90 days

Exports are zero-rated, and there are two ways to ship. Under a Letter of Undertaking (LUT) on form RFD-11, you export without paying IGST and claim a refund of unused input tax credit. The LUT covers one financial year, so file a new one each year. Or you pay IGST on the export, and the shipping bill is treated as the refund claim once the export manifest and a valid GSTR-3B are filed and you have completed Aadhaar authentication under rule 10B. Since 1 October 2023 this IGST-paid route has been open only to notified classes, but Notification 01/2023-Integrated Tax notifies all goods except pan masala, listed tobacco products and mint oils. Ask your CA which route suits your cash flow.

Two conditions catch beginners. Goods invoiced under an LUT must be exported within three months of the invoice date, or any longer period the Commissioner allows. Otherwise the tax plus interest is due within 15 days after that, and the LUT facility is withdrawn until it is paid. And if export proceeds are not realised in time, any refund received on the unrealised amount must be repaid with interest within 30 days after the FEMA period, including any extension, ends.

The 90% provisional refund for exports is long-standing; what changed on 1 October 2025 is how it is decided. For zero-rated refund claims filed on or after that date, the system risk-rates each claim. For low-risk claims, the officer issues a provisional order for 90% within seven days of acknowledgement, unless refusing with recorded reasons. Claims not rated low-risk are scrutinised in full before any refund. Anyone who has not completed Aadhaar authentication gets no provisional refund, and neither do suppliers of areca nuts, pan masala, tobacco or essential oils (Notification 14/2025-Central Tax).

A supplier selling to a merchant exporter may charge just 0.1% GST, on conditions. Among them, the exporter must be registered with a council or board and send a copy of its order to the supplier's jurisdictional tax officer; the goods must move directly from the supplier to the port, inland container depot (ICD), airport or land customs station, or to a registered warehouse; they must be exported within 90 days of the supplier's invoice; and the supplier's GSTIN and invoice number must appear on the shipping bill.

How long do you have to get paid under the new FEMA rules?

To realise the full export value, counted from the date of shipment: 9 months
If the export is invoiced or settled in Indian rupees: 12 months
Shipping bill value up to which your bank can close the export record (EDPMS) on your declaration of payment: ₹10 lakh

The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 came into force on 1 October 2026, replacing the 2015 regulations. Under regulation 5, the full value of exported goods must be realised and repatriated within nine months of shipment (of the sale, for goods sent to a warehouse abroad), or twelve months if invoiced or settled in rupees. Your AD bank may extend the period if you ask and give reasons for the delay. The text notified in January 2026 originally said 15 months; an RBI amendment of 22 September 2026 cut it to nine before it took effect.

For a shipping bill of up to ₹10 lakh, the bank may close the export entry on your declaration that payment was received.
If proceeds stay unrealised more than a year past the due date, further exports need full advance payment or an irrevocable letter of credit.

Check with your AD bank how shipments made before 1 October 2026 are treated. A November 2025 amendment allowed 15 months under the old regulations, and we have not found an RBI text that states plainly how the change applies to them.

Treat nine months as a ceiling, not a target: advance payment, a letter of credit or short credit leaves room for delays. If you give credit, export credit insurance from ECGC, the government-owned export credit agency, covers buyer insolvency and non-payment, but not exchange-rate losses, or quality disputes unless you obtain a court decree in the buyer's country. Once your bank reports the inward remittance, you generate the e-BRC on the DGFT portal. Our guide to the export proceeds realisation period covers extensions.

What does it take to export to the UK under the new trade agreement?

The UK makes a useful worked example. UK-India trade was about £48bn in 2025, according to the UK government, and India's goods exports to the UK were US$13.44bn in 2025-26, according to the Indian government's Press Information Bureau. Since 15 July 2026 the UK-India Comprehensive Economic and Trade Agreement (CETA) lets most Indian goods enter at 0% duty, if the goods meet the agreement's origin rule and the UK importer claims preference with valid proof of origin.

Product	Duty India paid before 15 Jul 2026	Under CETA
Cotton bed linen	12% (excluded from the 9.6% DCTS rate)	0%
Cotton T-shirts	9.6% under DCTS (standard rate 12%)	0%
Natural honey	16% (no DCTS rate)	0%
Fresh mango	0%	0% (no change)

Certificates of origin for UK-bound goods are issued on DGFT's Trade Connect platform (trade.gov.in): self-declared at no fee with an IEC-linked DSC, or issued by an agency. Agree with your buyer's UK customs agent which proof of origin they will use before the first shipment. The UK importer can also claim on an origin declaration or on its own knowledge, and a consignment with a customs value of £1,000 or less needs no proof of origin. Indian exporters do not register with HMRC to make origin declarations or need a URN; that step applies only to UK goods going into India. DDP is different, as the import falls to you: GOV.UK says a business usually needs premises in the country to get an EORI number, and one that is not eligible appoints someone to deal with customs, who gets the EORI instead.

Origin is where new exporters slip. Goods bought abroad, for example in China, and only repacked or labelled in India are not Indian origin under Article 3.7 of the agreement. Keep origin records for five years. CETA changes duty only: UK VAT, food safety and product safety rules still apply. The full process is in our guide on how to export from India to the UK.

Can you sell abroad without exporting yourself?

Yes. Many producers, farmer producer organisations and small workshops sell to a merchant exporter, which buys goods in India and exports them under its own registrations. You make a domestic sale. Our guide to what a merchant exporter is explains the arrangement.

Task	Exporting yourself	Through a merchant exporter
IEC, shipping bill, AD code	You, with a customs broker	Merchant exporter
GST	GSTIN, LUT and refunds	GSTIN; 0.1% invoice if conditions are met
Proof of origin	You	Merchant exporter, using your production details
Getting paid under FEMA	You, within 9 months	Merchant exporter

Under the UK-India agreement, an exporter that is not the producer may complete the origin declaration using the producer's information, so expect to share details of materials and production. You give up direct contact with the buyer and part of the margin, in return for less paperwork, and the FEMA realisation duty sits with the merchant exporter. Britbasket, which publishes this guide, is a merchant exporter shipping to UK buyers. Whoever you work with, agree in writing who holds each registration and who signs the proof of origin.

Which dates and deadlines should a new exporter diary?

What	Deadline	Rule
IEC annual update	1 April to 30 June, every year	FTP para 2.05
IEC changes (address, bank, constitution)	Within 30 days of the change	HBP para 2.14(b)
LUT	Before the first export of each financial year	CGST rule 96A; Notification 37/2017-CT
Goods invoiced under an LUT	Exported within 3 months of the invoice date, unless the Commissioner allows longer	CGST rule 96A
Goods bought at 0.1% GST	Exported within 90 days of the supplier's invoice	Notification 40/2017-CT (Rate)
Export proceeds	9 months from shipment (12 if invoiced or settled in rupees)	FEMA 2026, regulation 5
RCMC	Renew after 5 years; report changes within 1 month	HBP paras 2.81 and 2.82
CETA origin records	Keep for 5 years	CETA Article 3.24

Questions exporters ask

How much investment is needed to start an export business in India?

No official minimum capital applies in the rules reviewed for this guide. Government fees are small: ₹500 for an IEC and nothing for a self-declared CETA certificate of origin. Food exporters pay ₹7,500 a year for an FSSAI Central Licence, and APEDA registration costs ₹5,900 for five years. The real cost is working capital for stock, freight and up to nine months of buyer credit.

How do I find my first export buyer?

Start with one product and one market. Use trade data to see who imports it, then reach buyers through trade fairs, your export promotion council's events and buyer directories, and send samples before quoting. Agree the Incoterm and payment terms in writing before you ship.

Can I export without an IEC?

Not as a business. Paragraph 2.07 of the DGFT Handbook of Procedures lists the exemptions, and they are narrow: government ministries and departments, goods for personal use not connected with trade, manufacture or agriculture, some categories under a 1993 exemption order, and small border trade with Nepal, Bhutan, Myanmar and China within value limits.

Does an IEC have to be renewed every year?

No. An IEC is valid permanently unless suspended or cancelled, but it must be updated or confirmed on the DGFT portal every year between 1 April and 30 June. An IEC that is not updated is deactivated, and completing the update reactivates it.

Do I need a licence to export food from India?

Yes. FSSAI requires a Central Licence for manufacturer-exporters and trader or merchant exporters alike, with no turnover threshold, at ₹7,500 a year. Exporters of APEDA-scheduled products, such as fresh fruit, honey and processed foods, must register with APEDA (₹5,900 for five years). Honey also needs an EIC export inspection certificate or an EIC-approved unit, spices need Spices Board registration and tea needs a Tea Board licence.

What happens if my buyer pays after nine months?

Ask your AD bank for an extension: the regulations let it extend the period on request. If proceeds stay unrealised more than a year past the due date, further exports need full advance payment or an irrevocable letter of credit. If the money is still not received by the end of the period, including any extension your bank allows, you must repay any GST refund on the unpaid amount, with interest, within 30 days (CGST rule 96B).

Do I need to register with HMRC to export to the UK?

Not for proof of origin. Indian exporters shipping to the UK do not register with HMRC to make origin declarations or obtain a URN; those steps apply only to UK goods exported to India. The UK importer, usually through a customs agent, makes the import declaration and claims 0% duty using your proof of origin. DDP is different, as the import falls to you. GOV.UK says a business usually needs premises in the country to get an EORI number, and one that is not eligible appoints someone to deal with customs, who gets the EORI instead. Ask a UK customs agent how this would work before quoting DDP.

Rahul

Director, BRITBASKET PRIVATE LIMITED

Britbasket exports from India to UK wholesale, retail and foodservice buyers, and has cleared shipments into the UK by air and by sea. Registered in India: CIN U47220HR2025PTC128831, GSTIN 06AANCB2770Q1Z2, IEC AANCB2770Q. About the company

Sources

Last reviewed 30 October 2026. Border, tariff and plant-health rules change. Check the sources above before relying on this guide for a specific consignment.

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