The Ministry of Finance (Department of Revenue) has issued Notification No. 01/2026–Customs, extending the validity of several long-standing customs exemption notifications up to 31 March 2028.
The notification was published in exercise of powers under Section 25(1) of the Customs Act, 1962, citing public interest.
Extension of Sunset Dates for Major Exemptions
The notification amends four principal customs notifications dating back to 1976 and 1997, which provide exemption or concessional duty on specified goods. In each case, the earlier sunset date of 31 March 2026 has now been substituted with 31 March 2028, ensuring continuity of tax benefits for another two years.
The amended notifications include:
- Notification No. 248-Cus., dated 2 August 1976
- Notification No. 32/1997-Customs, dated 1 April 1997
- Notification No. 24/2001-Customs, dated 1 March 2001
- Notification No. 25/2001-Customs, dated 1 March 2001
These notifications collectively cover a wide range of goods, including industrial inputs, capital goods, and other specified imports that have historically enjoyed customs duty relief.
Boost for Electric Vehicles and Energy Storage
In another notable amendment, the government has modified Notification No. 25/2002-Customs, dated 1 March 2002. The amendment expands the scope of exemptions by inserting the words “or Battery Energy Storage Systems (BESS)”after “Electrically Operated Vehicles” at the relevant entry in the table.
This change aligns customs policy with India’s broader clean energy and energy transition goals, formally recognising battery energy storage systems as eligible for customs benefits alongside electric vehicles.
Major Clean-Up of Exemption Entries in 2024 Notification
The notification also makes substantial changes to Notification No. 36/2024-Customs, dated 23 July 2024. Multiple serial numbers in the exemption table—covering a wide range of goods—have now been omitted. These include entries such as Sl. Nos. 5, 6, 7, 8, 9, 10, 12, 13, 14, 21, 38, 39, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, and 56.
Additionally, a proviso has been inserted clarifying that nothing contained in the said notification shall have effect after 30 April 2026, introducing a clear sunset clause and reducing ambiguity around its temporal application.
Clarificatory Amendment to May 2025 Notification
Further, Notification No. 29/2025-Customs, dated 9 May 2025, has been amended by inserting a new paragraph explicitly stating that the notification shall not have effect after 31 March 2028. This ensures uniformity in sunset clauses across exemption notifications.
Effective Date
The Finance Ministry has clarified that Notification No. 01/2026–Customs comes into force on 2 February 2026.
Notification Details
Notification No. 01/2026-Customs
Date: 01/02/2026
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