A 'major change' in customs duty payments! Payments via UPI approved, making life easier for traders
CBIC has enabled payment aggregators to facilitate customs duty payments on the ICEGATE e-payment platform. Payments can now be made via UPI, credit cards, debit cards, and internet banking.
The Central Board of Indirect Taxes and Customs (CBIC) has said that companies can now use UPI, debit or credit cards to pay customs duty on the department's ICEGATE portal.
In a circular, the CBIC said that the ICEGATE (Indian Customs Electronic Data Interchange Gateway) e-payment platform has enabled payment aggregators as an authorised channel to facilitate customs duty payments. ICEGATE essentially serves as the key digital infrastructure for Indian Customs.
It serves as an interface through which importers and exporters file documents, track clearances, and make duty payments. While the system has evolved significantly over time,
payment mechanisms have largely remained confined to a limited number of authorized banks and traditional channels such as net banking and NEFT/RTGS.
Companies will be able to use UPI
Ikesh Nagpal, head of indirect tax at tax and consulting firm AKM Global, said that with the payment aggregator offering on ICEGATE, fee payments are no longer limited to specific banking channels.
Companies can now use UPI, debit or credit cards and access a wider banking network, providing greater ease and convenience in making payments and managing transactions. This will reduce dependence on a limited set of banks. This will bring greater flexibility and speed, especially in time-sensitive approval cases.
Importers and exporters will benefit
Nagpal said that more importantly, the introduction of UPI is a significant facilitator as it is simple, widely accessible, and generally does not involve transaction costs, significantly benefiting small taxpayers.
This is a step towards enhancing ease of doing business. Vimal Pruthi, Tax Partner, EY India,
said that this reform simplifies transactions for importers and exporters, reduces bottlenecks in the clearance process, and brings greater speed and transparency to cash flow management… and reinforces India's commitment to facilitating trade and ease of doing business.