In a bid to provide relief to importers and exporters amid the ongoing conflict in Middle East, the Central Board of Indirect Taxes and Customs (CBIC) has introduced measures to simplify the transaction process for customs duty payments.
The CBIC on March 24 enabled payment aggregators to facilitate customs duty payments on the ICEGATE e-Payment platform.
Before March 24, the platform allowed for a unified payment mode where exporters and importers could pay duties through any authorized bank using NEFT or RTGS. Now, the payment can be made through UPI, credit card, debit card, as well as internet banking.
Moneycontrol had reported on March 3 that the Central government has initiated discussions with traders to introduce steps on the customs front to limit the impact of the conflict in Middle East.
"This initiative aligns with the government’s digitalisation agenda and is expected to reduce delays and improve the overall user experience on the ICEGATE platform," said Manoj Mishra, Partner, Grant Thornton Bharat.
Indian Customs Electronic Data Interchange Gateway (ICEGATE) is the national portal of the Customs department that provides e-filing services to trade and cargo carriers. Its e-payment platform is designed to facilitate the digital payment of various customs-related duties and taxes.
Currently ICICI, IOB, SBI and HDFC bank have been onboarded on ICEGATE as payment-aggregator. Subsequently, more banks will be added as and when the testing is completed with them, the CBIC said in a circular, on Tuesday.
By enabling UPI, debit and credit cards, and a wider net-banking ecosystem for duty payments, the government has significantly broadened accessibility for businesses of all sizes, say experts.
Ikesh Nagpal, Lead-Indirect Tax, AKM Global, said: “Earlier, where access to authorised banks was a constraint, businesses often had to rely on less efficient workarounds. This change makes the system more inclusive and far easier to navigate and a step forward in enhancing ease of doing business.”
“This reform simplifies how importers and exporters transact, reduces hurdles in the clearance process, and brings greater speed and transparency to cash flow management,” said Vimal Pruthi, Tax Partner, EY India.
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