Summary
The Indian federal government has actually waived custom-mades responsibilities on 18 defence-related imports, consisting of rockets, military airplane, and weapons elements, to strengthen defence modernization. This exemption, combined with the removal of incorporated products and services tax (IGST), intends to lower expenses and assistance domestic defence abilities.
The Centre on Wednesday excused from custom-mades responsibility 18 defence-related imports, consisting of flight movement simulators, ship-launched rockets, rockets with calibres over 100 mm, from another location piloted military airplane, and all parts, spares, tools, and devices utilized for artillery weapons, rifles, airplane, and rockets.
The responsibility exemption will likewise cover military transportation airplane, deep submergence rescue vessels, unmanned undersea vessels, and high efficiency batteries for drones, to name a few, a notice released by the Central Board of Indirect Taxes and Customs (CBIC) stated.
These products will now bring in nil custom-mades task and nil incorporated items and services tax (IGST).
The relocation will support the nation’s defence modernisation efforts.
These modifications remain in line with the current decrease of GST on these items from 18% to nil.
In addition, the federal government has actually offered remedy for IGST on particular imports, consisting of artworks for public exhibit in museums or galleries, memorials of a public character planned for public locations, and antiques or antiquities, if they are accredited by the culture ministry. Previously there was exemption just on fundamental custom-mades responsibility.
The Centre has actually increased IGST rate on import of equipment such as oil and gas rigs (onshore), petroleum and gas well drilling equipment, and devices for specialised services for overseas and onshore petroleum operations to 18% from earlier 12%.
The Centre has actually likewise increased IGST on drilling bits for earth boring and rock drilling tools, and other products such as lifeboats, survival craft, life craft, vessels for contamination control, and other devices imported by a defined individual, for petroleum operations or coal bed methane operations to 18% from 12%.
This modification remains in line with the boost in GST rate on such items in the current GST Council conference.
(Originally released on Sep 17, 2025)
