Customs duty payments go digital

In a major push towards digitalisation and ease of doing business, the Central Board of Indirect Taxes and Customs (CBIC) has enabled businesses to pay Customs duty using UPI, debit cards, and credit cards on the ICEGATE portal.

According to a CBIC circular, the ICEGATE e-payment system has now integrated a ‘Payment Aggregator’ as an authorised mode for duty payments. This move significantly expands the range of payment options beyond the earlier system, which was largely dependent on a limited number of authorised banks and traditional methods such as net banking and NEFT/RTGS.

ICEGATE serves as the digital backbone of Indian Customs, allowing importers and exporters to file documents, track shipments, and complete duty payments. With the introduction of multiple digital payment options, businesses will now experience greater flexibility and faster transaction processing, especially during time-sensitive cargo clearances.

Tax experts have welcomed the reform, highlighting its impact on improving efficiency. Ikesh Nagpal of AKM Global noted that the integration of UPI and card-based payments will reduce reliance on specific banking channels while offering convenience and wider accessibility. The inclusion of UPI, in particular, is expected to benefit small taxpayers due to its simplicity and minimal transaction costs.

Vimal Pruthi of EY India said the initiative will simplify transactions for importers and exporters, improve transparency in cash flow management, and reduce procedural delays. Similarly, Manoj Mishra of Grant Thornton Bharat observed that the move would streamline payment processes and enhance the overall user experience on the ICEGATE platform.

The reform aligns with the government’s broader digital agenda and is expected to make Customs processes more efficient, faster, and user-friendly for businesses engaged in international trade.