FinMin Issues 3 Customs Notifications: Revises Duty Rate, Expands Defence Exemptions, and Extends IGST Relief [Read Notification]
FinMin issued three Customs notifications on 17 Sept 2025 revising a duty rate, expanding defence exemptions, and extending IGST relief effective 22 Sept 2025.
FinMin - Customs Notifications - Revises Duty Rate - Expands Defence Exemptions - Extends IGST Relief - taxscan
FinMin - Customs Notifications - Revises Duty Rate - Expands Defence Exemptions - Extends IGST Relief - taxscan
The Ministry of Finance (Department of Revenue) on 17 September 2025 issued three separate notifications: Notification No. 36/2025-Customs (G.S.R. 643(E)), Notification No. 37/2025-Customs (G.S.R. 644(E)), and Notification No. 38/2025-Customs (G.S.R. 645(E)) making important amendments to existing customs duty frameworks. All three notifications will come into force from 22 September 2025.
According to Notification No. 36/2025-Customs, the government has amended the exemption Notification No. 50/2017-Customs, dated 30 June 2017. In the exemption table, at Serial No. 404, the entry in column (5) has been substituted, and the applicable duty rate has now been fixed at 18%.
Recent GST Rulings You Can’t Ignore! Are you updated? Click here
Notification No. 37/2025-Customs amends Notification No. 19/2019-Customs, dated 6 July 2019, by expanding the list of defence-related imports eligible for exemption. A total of 18 new categories have been inserted (Sl. No. 24 to 41).
New Defence Exemptions (Sl. No. 24–41)
| Sl. No. | HS Code(s) | Item Description |
| 24 | 88, 8536 | Flight Motion Simulator and its parts |
| 25 | 88, 8536 | Target Motion Simulator and its parts |
| 26 | Any Chapter | Parts, sub-assemblies of HACFS |
| 27 | 84, 85 | Low noise amplifiers, vent guide assemblies (MRSAM system) |
| 28 | 84, 85, 87, 90, 93 | Parts and sub-assemblies of IAWDS |
| 29 | 88 | Military transport aircraft (C-140, C-295 MW) |
| 30 | 89 | Deep submergence rescue vessels |
| 31 | 89 | Unmanned underwater vessels/platforms |
| 32 | 8807 | Ejection seats for fighter aircraft |
| 33 | 8506 | High-performance batteries for drones/specialised equipment |
| 34 | 8525 | Software-defined radios with components and accessories |
| 35 | 9019, 9020 | Diving and rebreather systems, components and accessories |
| 36 | 89 | Sonobuoys for naval air assets |
| 37 | 93 | Ship-launched missiles |
| 38 | 93 | Rockets with calibre >100 mm |
| 39 | 88 | RPAs (Remotely Piloted Aircraft) for military use |
| 40 | Any Chapter | Parts, spares, tools, accessories for artillery weapons, rifles, aircraft, missiles, etc. |
| 41 | 49 | Technical documentation related to above items |
Notification No. 38/2025-Customs amends Notification No. 29/2025-Customs, dated 9 May 2025, to make it clear that the exemption applies not only to basic customs duty (BCD) but also to the integrated tax (IGST) charged under Section 3(7) of the Customs Tariff Act.
Notification No. 29/2025 originally granted full customs duty exemption on specified goods such as works of art for public exhibition in museums or galleries, memorials of a public character intended for public places, and antiques or antiquities defined under the Antiquities and Art Treasures Act, 1972, subject to conditions like certification from the Ministry of Culture and registration with the Archaeological Survey of India.
With the amendment made through Notification No. 38/2025, these imports will now enjoy complete relief from both customs duty and IGST.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
