Scrapping customs duty and IGST, the government eases import of missiles, drones, and key defence equipment.
The Centre has exempted 18 defence-related imports from customs duty, a move aimed at supporting India’s military modernisation programme.
According to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC), the duty waiver covers items such as flight motion simulators, ship-launched missiles, rockets with calibres over 100mm, remotely piloted military aircraft, and all related parts, spares, tools and accessories. Artillery weapons, rifles, aircraft and missiles are also included.
The exemption extends further to military transport aircraft, deep submergence rescue vessels, unmanned underwater vessels, and high-performance batteries for drones. These items will now attract nil customs duty and nil integrated goods and services tax (IGST).
Officials said the decision would reduce costs for the armed forces and accelerate the procurement of advanced systems required to meet operational needs. The move aligns with the government’s ongoing efforts to modernise defence capabilities and reduce barriers to acquiring sophisticated technologies.
The announcement comes in the wake of recent reductions in GST on several categories of goods, part of broader efforts to streamline taxation and lower import costs for critical items.
Defence analysts note that the exemption is expected to ease acquisition timelines for high-priority equipment and ensure greater flexibility in upgrading existing platforms.
