Govt Clarifies Customs Duty and Classification of Interactive Flat Panel Displays and Other Monitors [Read Circular]
The Finance Ministry clarified that IFPDs attract 20% duty, standard monitors 10%, and IFPD parts 5%
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The Tax Research Unit (TRU) under the Ministry of Finance issued a Circular No. 12/2025-Customs dated April 7, 2025 clarifying customs duty and classification rules for Interactive Flat Panel Displays (IFPDs) and other monitors. According to the Circular, the Basic Customs Duty (BCD) on IFPDs has been increased from 10% to 20% starting February 2, 2025, following the 2025-26 Union...
The Tax Research Unit (TRU) under the Ministry of Finance issued a Circular No. 12/2025-Customs dated April 7, 2025 clarifying customs duty and classification rules for Interactive Flat Panel Displays (IFPDs) and other monitors.
According to the Circular, the Basic Customs Duty (BCD) on IFPDs has been increased from 10% to 20% starting February 2, 2025, following the 2025-26 Union Budget. This change was made to discourage misclassification and ensure correct tax collection on high-end display devices.
The duty for monitors other than IFPDs under the same tariff category (HS Code 85285900) remains at 10%. Earlier, this 10% rate came with an IGCR condition which meant that the imported monitors had to be used in manufacturing to qualify. Many industry players raised concerns as these monitors were being used directly, not in further production.
To solve this confusion, the government has now removed the IGCR condition through Notification No. 23/2025-Customs issued on April 4, 2025. This change simplifies the process for importers and ensures they are not wrongly charged the higher 20% duty meant for IFPDs.
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How to Tell the Difference?
The Ministry has provided a technical guide to help customs officers and businesses distinguish between IFPDs and regular monitors based on inputs from the Ministry of Electronics and IT (MeitY). Key differences include:
- Touch capability: IFPDs support multi-touch; monitors do not.
- Screen size: IFPDs usually range from 55” to 110”, while monitors range from 15” to 43”.
- Built-in software and speakers: Present in IFPDs but not in regular monitors.
- Power and resolution: IFPDs consume more power and offer higher resolution, often 4K or above.
The circular also clarifies that parts of IFPDs like Touch Glass Sheets and Touch Sensor PCBs will be classified under HS Code 8529 and attract a 5% BCD, under the already existing Sr. No. 515D of the Customs Notification.
The Finance Ministry has invited stakeholders to report any difficulties they face while implementing these guidelines.
To Read the full text of the Circular CLICK HERE
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