Finance Bill, 2026: Proposed Amendments in the Customs Act, 1962 to Extend Validity of Customs Advance Rulings [Read Finance Bill 2026]

The Finance Bill, 2026 was introduced in the Lok Sabha alongside the Union Budget for 2026-27 by Finance Minister Nirmala Sitharaman today.

Among the proposed GST changes introduced via the Bill, a reform relating to Customs Act was also announced. The change pertains to section 28J of the Act, which states:

28J. Applicability of advance ruling—

(1) The advance ruling pronounced by the Authority under Section 28-I shall be binding only—

(a) on the applicant who had sought it;

(b) in respect of any matter referred to in sub-section (2) of section 28H;

(c) on the Principal Commissioner of Customs or Commissioner of Customs, and the customs

authorities subordinate to him, in respect of the applicant.

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(2) The advance ruling referred to in sub-section (1) shall be binding as aforesaid unless there is a change in law or facts on the basis of which the advance ruling has been pronounced.

The Finance Bill seeks to make the following amendments:

• Substituting “three years” with “five years”
• A new proviso

This amendment will increase the validity period of an advance ruling from three years to five years. For advance rulings that were already in force, the applicant can apply to extend their validity for five years from the date of the original ruling.

The intent is to reduce ambiguity and disputes between traders and customs authorities. It gives businesses a clearer window during which they can depend on an advance ruling.

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