ICEGATE now accepts UPI, debit, and credit card payments for customs duty, streamlining the payment process and enhancing convenience for Indian businesses involved in import and export.
Key Points
- ICEGATE now accepts UPI, debit, and credit card payments for customs duty, expanding payment options for businesses.
- The introduction of a payment aggregator on ICEGATE reduces reliance on specific banking channels, offering greater flexibility and convenience.
- UPI's accessibility and low transaction costs benefit smaller taxpayers, promoting ease of doing business.
- The move aligns with the government's digitalisation agenda, aiming to reduce delays and streamline payment processes.
- Experts believe this reform will simplify transactions, reduce clearance hurdles, and improve cash flow management for importers and exporters.
Businesses can now use UPI, debit or credit cards for paying Customs duty on the ICEGATE portal, the Central Board of Indirect Taxes and Customs (CBIC) has said.
The CBIC in a circular said ICEGATE e-Payment platform has enabled 'Payment Aggregator' as an authorised mode to facilitate customs duty payment.
ICEGATE essentially functions as the digital backbone of Indian customs and acts as an interface through which importers and exporters file documents, track clearances, and discharge duty payments. While the system has evolved significantly over the time, the payment mechanism remained largely anchored to a limited set of authorised banks and conventional channels such as net banking and NEFT/RTGS.
Benefits of the New Payment System
"With the rollout of a payment aggregator on ICEGATE, duty payments are no longer confined to specific banking channels. Businesses can now use UPI, debit or credit cards, and access a significantly wider banking network bringing a greater degree of ease and convenience in making payments and managing transactions," said Ikesh Nagpal, Lead-Indirect Tax, AKM Global, a tax and consulting firm.
This would bring in greater flexibility and speed, particularly in time-sensitive clearance situations, by reducing dependence on a limited set of banks.
More importantly, the introduction of UPI is significant enabler being simple, widely accessible, and typically does not involve transaction costs, which makes a real difference for smaller taxpayers. It is a step forward in enhancing ease of doing business, Nagpal said.
EY India Tax Partner Vimal Pruthi said this reform simplifies how importers and exporters transact, reduces hurdles in the clearance process, and brings greater speed and transparency to cash flow management. It builds on the momentum of the Electronic Cash Ledger and reinforces India's commitment to trade facilitation and ease of doing business.
Grant Thornton Bharat, Partner and Tax Controversy Management Leader, Manoj Mishra said the availability of multiple digital payment options such as credit/debit cards, UPI, and net banking will help reduce reliance on limited banking channels and provide greater flexibility, speed, and convenience to importers.
"This initiative aligns with the Government's digitalisation agenda and is expected to reduce delays, streamline payment processes, and improve the overall user experience on the ICEGATE platform," Mishra said.
