‘Major Change’ in Customs Duty Payments! UPI Payments Approved, Paving an Easier Path for Traders..

The Central Board of Indirect Taxes and Customs (CBIC) has announced that companies can now use UPI, debit cards, or credit cards to pay customs duties on the department's ICEGATE portal. In a circular, the CBIC stated that the ICEGATE (Indian Customs Electronic Data Interchange Gateway) e-payment platform has enabled payment aggregators as an authorized medium to facilitate the payment of customs duties. Essentially, ICEGATE serves as a critical digital infrastructure for Indian customs duties.

It functions as an interface through which importers and exporters file documents, track clearances, and make duty payments. However, while the system has evolved significantly over time, the payment mechanism has largely remained restricted to a limited number of authorized banks and traditional channels such as Net Banking and NEFT/RTGS.

Companies Can Now Use UPI
Ikesh Nagpal, Head of Indirect Taxes at the tax and advisory firm AKM Global, stated that with the introduction of payment aggregators on ICEGATE, duty payments are no longer confined to specific banking channels. Companies can now utilize UPI, debit cards, or credit cards to access a wider banking network, thereby ensuring greater ease and convenience in making payments and managing transactions. This will reduce the reliance on a limited group of banks. It will also introduce greater flexibility and speed, particularly in cases involving time-sensitive clearances.

Benefits for Importers and Exporters
Nagpal added that, more importantly, the introduction of UPI is a significant convenience feature as it is simple, widely accessible, and typically involves no transaction costs—thereby offering substantial benefits to small taxpayers. This marks a step taken towards enhancing the 'Ease of Doing Business.' Vimal Pruthi, Tax Partner at EY India, stated that this reform simplifies transactions for importers and exporters, reduces hurdles in the clearance process, and brings greater speed and transparency to cash flow management—thereby strengthening India's commitment to trade facilitation and ease of doing business.

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