Ahead of the FY27 Union Budget, India Inc is urging the government to introduce a GST-style simplification of the customs duty regime to boost trade facilitation and streamline dispute resolution.
Key demands include rationalisation of customs duty rates, pruning of the current eight-slab structure to five or six, and the introduction of a single-window clearance mechanism for imports and exports. The industry also seeks a definitive timeline for Authorised Economic Operator (AEO) certification and a formal charter for the Directorate of Revenue Intelligence (DRI) to conduct investigations.
Also Read: Budget 2026: India’s power shift hinges on fixing a crisis millions complain about
On dispute resolution, businesses are pushing for digitisation of the entire litigation process and a scheme to unclog Rs 1.52 lakh crore in customs duty currently tied up in legal disputes.
Deloitte India Partner Gulzar Didwania highlighted the operational hurdles faced by traders. “Currently, an importer or an exporter has to approach various government departments and ministries to get clearance for their shipments. That is becoming a big hindrance in doing trade. While I am ready to comply with all these things, at least I should know that this is the department where I should go,” he said.
He added, “Customs already has a provision under the Customs Act, which empowers them to act as a single window for all these import-export related licensing requirements. We want this facility to be launched as soon as possible, so that it actually achieves the real, true spirit of single window clearance.”
Industry sources also want the AEO scheme to include strict timelines for certification, as such recognition allows importers, exporters, and customs brokers to receive trade facilitation support from foreign customs administrations, boosting global trade efficiency.
Also Read: Budget 2026: Phone machines likely to get rid of duty friction
“Like the government has issued guidelines for the functioning of DGGI under the GST law, industry is expecting some similar guidelines or charter for the Directorate of Revenue Intelligence (DRI),” Didwania added.
EY India Tax Partner Saurabh Agarwal said that for India to achieve its USD 5 trillion economy goal, fiscal policy must provide tax certainty and support manufacturing competitiveness. He noted that while “Sabka Vishwas” and “Vivad se Vishwas” successfully cleared central excise, service tax, and income tax disputes, no parallel framework exists for customs.
“To effectively arrest spiralling litigation, it is imperative to introduce a Customs Dispute Resolution Scheme covering cases pending up to the Tribunal level. Crucially, the architecture of this scheme must shift away from the 'complete settlement of a pending litigation' approach to adopting an 'issue-wise' or 'year-wise' settlement mechanism. Such a pragmatic move would not only unlock stuck revenue but also foster a predictable tax environment essential for global investors,” Agarwal said.
As of March 2024, 38,014 cases involving Rs 1.52 lakh crore in customs duty remain locked in litigation.
Abhishek Jain, Partner and National Head of Indirect Tax at KPMG India, said that amid global uncertainty and ongoing tariff wars, the industry is looking to Budget 2026 for stronger support for Make-in-India. Expectations include rationalisation of customs duties on key raw materials, simplification of duty slabs to reduce compliance friction, and a one-time window to resolve legacy disputes and litigation.
“Faster closure of related-party valuation approvals for importers, with maybe post-clearance risk-based audits instead of the current tedious process, is seen as a practical step towards improving ease of doing business and supply-chain efficiency,” Jain added.
With inputs from PTI
Key demands include rationalisation of customs duty rates, pruning of the current eight-slab structure to five or six, and the introduction of a single-window clearance mechanism for imports and exports. The industry also seeks a definitive timeline for Authorised Economic Operator (AEO) certification and a formal charter for the Directorate of Revenue Intelligence (DRI) to conduct investigations.
Also Read: Budget 2026: India’s power shift hinges on fixing a crisis millions complain about
On dispute resolution, businesses are pushing for digitisation of the entire litigation process and a scheme to unclog Rs 1.52 lakh crore in customs duty currently tied up in legal disputes.
Deloitte India Partner Gulzar Didwania highlighted the operational hurdles faced by traders. “Currently, an importer or an exporter has to approach various government departments and ministries to get clearance for their shipments. That is becoming a big hindrance in doing trade. While I am ready to comply with all these things, at least I should know that this is the department where I should go,” he said.
He added, “Customs already has a provision under the Customs Act, which empowers them to act as a single window for all these import-export related licensing requirements. We want this facility to be launched as soon as possible, so that it actually achieves the real, true spirit of single window clearance.”
Industry sources also want the AEO scheme to include strict timelines for certification, as such recognition allows importers, exporters, and customs brokers to receive trade facilitation support from foreign customs administrations, boosting global trade efficiency.
Also Read: Budget 2026: Phone machines likely to get rid of duty friction
“Like the government has issued guidelines for the functioning of DGGI under the GST law, industry is expecting some similar guidelines or charter for the Directorate of Revenue Intelligence (DRI),” Didwania added.
EY India Tax Partner Saurabh Agarwal said that for India to achieve its USD 5 trillion economy goal, fiscal policy must provide tax certainty and support manufacturing competitiveness. He noted that while “Sabka Vishwas” and “Vivad se Vishwas” successfully cleared central excise, service tax, and income tax disputes, no parallel framework exists for customs.
“To effectively arrest spiralling litigation, it is imperative to introduce a Customs Dispute Resolution Scheme covering cases pending up to the Tribunal level. Crucially, the architecture of this scheme must shift away from the 'complete settlement of a pending litigation' approach to adopting an 'issue-wise' or 'year-wise' settlement mechanism. Such a pragmatic move would not only unlock stuck revenue but also foster a predictable tax environment essential for global investors,” Agarwal said.
As of March 2024, 38,014 cases involving Rs 1.52 lakh crore in customs duty remain locked in litigation.
Abhishek Jain, Partner and National Head of Indirect Tax at KPMG India, said that amid global uncertainty and ongoing tariff wars, the industry is looking to Budget 2026 for stronger support for Make-in-India. Expectations include rationalisation of customs duties on key raw materials, simplification of duty slabs to reduce compliance friction, and a one-time window to resolve legacy disputes and litigation.
“Faster closure of related-party valuation approvals for importers, with maybe post-clearance risk-based audits instead of the current tedious process, is seen as a practical step towards improving ease of doing business and supply-chain efficiency,” Jain added.
With inputs from PTI
