Indirect Taxes

Energy and Critical Minerals

• Critical Minerals: Capital goods required for processing critical minerals are exempted from Basic Customs Duty (BCD). Specifically, the duty on Monazite is reduced from 2.5% to Nil.
• Solar: Sodium antimonate, used in manufacturing solar glass, is exempted from BCD.
• Battery Storage: The exemption on capital goods for manufacturing Lithium-Ion cells is extended to include those used for battery energy storage systems.
• Nuclear Power: The exemption on goods required for nuclear power projects is extended until 2035 and expanded to all plants regardless of capacity.
• Biogas: The value of biogas/compressed biogas contained in blended CNG is excluded from central excise duty calculations.

Export Sectors (Marine, Leather, Textiles)

• Seafood: The limit for duty-free imports of inputs used for processing seafood is increased from 1% to 3% of the previous year's export turnover.
• Leather: Duty-free import of inputs is extended to the manufacture of Shoe

Other Sectors 

• Aviation: BCD is exempted on components, engines, and parts required for manufacturing aircraft.
• Electronics: BCD is exempted on specified parts used in the manufacture of microwave ovens.
• Defence: Raw materials imported by Defence PSUs for manufacturing aircraft parts (for maintenance, repair, or overhaul) are exempted from BCD.

Reducing the burden on Individuals and Patients

• Personal Use Imports: The tariff rate on all dutiable goods imported for personal use is reduced from 20% to 10%.
• Medical Relief: BCD is exempted on 17 drugs for cancer treatment and 7 rare diseases (and specific foods for their treatment).

Customs Process Reforms and Trade Facilitation

• Advance Rulings: To provide business certainty, the validity of advance rulings is extended from 3 years to 5 years.
• Digital Clearance: A single, interconnected digital window will process approvals from all agencies (Drug Controller, FSSAI, etc.) by the end of the financial year. Clearance for 70% of interdicted cargo (food, drugs, plants) will be operationalized on this system by April 2026.
• Warehousing Reform: The customs warehousing framework will shift to a warehouse operator-centric system based on self-declaration and electronic tracking, removing officer-dependent approvals.
  • Fisheries: Fish catch by Indian vessels in the Exclusive Economic Zone (EEZ) or High Seas will be duty-free. Landing such fish at a foreign port will be treated as an export.

New Export Opportunities

• E-Commerce Exports: To help artisans and MSMEs, the value cap of ₹10 lakh per consignment on courier exports is completely removed.

Special Economic Zones (SEZs)

• DTA Sales: As a one-time measure to address global trade disruptions, eligible manufacturing units in SEZs will be allowed to sell to the Domestic Tariff Area (DTA) at concessional duty rates. The quantity will be limited to a proportion of their exports.

Customs Integrated System (CIS)

• It will be rolled out in 2 years as a single, integrated and scalable platform for all the customs processes.