No Customs Duty, IGST On 18 Defence Imports: Military Aircraft, Drone Batteries, Among Items To Get Relief
The Centre has announced the waiver of customs duties and integrated goods & services tax (IGST) on 18 categories of defence items. The move has been designed to give more push to the armed forces’ modernization drive. Such items will henceforth attract nil customs duty and nil IGST.
These changes are in line with the recent reduction of GST on these products from 18% to nil. As per the Central Board of Indirect Taxes and Customs (CBIC) notification, among the beneficiary items are sophisticated training aids and weapon systems.
Flight motion simulators and target simulators, remotely piloted military aircraft, ship-launched missiles and rockets above 100 mm calibre will enter the country tax-free. High-performance batteries for drones, military transport aeroplanes and unmanned underwater vessels are also included.
The exemption extends beyond complete platforms to cover an extensive range of ancillary equipment. Spares, sub-assemblies, tools, testing devices and technical literature for artillery guns, rifles, aircraft and missile systems have been added to the duty waiver list. Communications equipment, including software-defined radios, as well as life-support apparatus such as ejection seats, diving and rebreather kits, and sonobuoys for naval aviation, will benefit similarly.
These amendments, framed under the Customs Act 1962 and the Customs Tariff Act 1975, update the exemption schedule first published in July 2019. They will come into effect from September 22, 2025, ensuring importers of eligible defence goods can plan procurement with immediate tax relief.
The duty cut aligns closely with the Goods and Services Tax Council’s recent overhaul, which reduced GST on these defence items from 18% to nil. Parallelly, the government has extended IGST relief to cultural imports such as museum exhibits, public memorials and antiques certified by the culture ministry, reinforcing a dual commitment to heritage preservation and defence capability.
The rules also apply to bits, smaller groups of parts, spare parts, extras, tools, testing machines, and books about big guns, rifles, planes, and rockets. However, there are some things that this doesn’t include, like the 12.7mm SRCG, 155mm/45 Cal Dhanush, L-70 Gun, 84mm RL Mk-III, AK-630 Naval Guns, Light Machine Guns, and MAG Guns.
By combining selective duty abolitions with targeted rate increases, the government aims to maintain fiscal stability while bolstering strategic industries. Officials hope the revised tax framework will lower acquisition costs for critical defence hardware, strengthen indigenous production, and support India’s economic and security objectives.
