Govt extends duty relief for electronics, lithium-ion battery manufacturing till 2029
New Delhi: The Centre has expanded customs duty concessions on a range of machinery and components used in electronics manufacturing, including lithium-ion batteries, display modules and smartphone components, until March 31, 2029.
The exemption will be implemented with immediate effect.
The move is expected to reduce the cost of importing specialised equipment and parts that are not widely manufactured in India, while supporting investments in battery cell manufacturing, automotive electronics and advanced electronics assembly.
Also Read: India's battery makers say new recycling rules may pull the plug on their business
The biggest change relates to lithium-ion battery manufacturing. The government has substantially expanded the list of machinery eligible for concessional customs duty by replacing the earlier entries under an existing exemption notification with a new list covering 85 types of equipment, including almost all machinery used in the manufacturing of lithium-ion batteries, according to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC).
The revised list includes machines used across the battery manufacturing process, such as material mixing, coating, pressing, slitting, winding, stacking, electrolyte filling, welding, testing, ageing, inspection and packaging. It also covers supporting equipment such as solvent recovery, heat recovery, dust collection and effluent treatment systems.
The notification also specifies the customs tariff classification for each machine to provide greater clarity for importers.
In a separate notification, the government has extended customs duty relief to five key components used in the manufacture of display assemblies for automotive, medical and industrial applications. These include display cells, flexible printed circuit assemblies (FPCAs), backlight units, frames and anisotropic conductive film (ACF).
The exemption will be implemented with immediate effect.
The move is expected to reduce the cost of importing specialised equipment and parts that are not widely manufactured in India, while supporting investments in battery cell manufacturing, automotive electronics and advanced electronics assembly.
Also Read: India's battery makers say new recycling rules may pull the plug on their business
The biggest change relates to lithium-ion battery manufacturing. The government has substantially expanded the list of machinery eligible for concessional customs duty by replacing the earlier entries under an existing exemption notification with a new list covering 85 types of equipment, including almost all machinery used in the manufacturing of lithium-ion batteries, according to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC).
The revised list includes machines used across the battery manufacturing process, such as material mixing, coating, pressing, slitting, winding, stacking, electrolyte filling, welding, testing, ageing, inspection and packaging. It also covers supporting equipment such as solvent recovery, heat recovery, dust collection and effluent treatment systems.
The notification also specifies the customs tariff classification for each machine to provide greater clarity for importers.
In a separate notification, the government has extended customs duty relief to five key components used in the manufacture of display assemblies for automotive, medical and industrial applications. These include display cells, flexible printed circuit assemblies (FPCAs), backlight units, frames and anisotropic conductive film (ACF).
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