Customs Notification 45/2025 Explained: A Major Step for Ease of Doing Business in India
The Government of India, through the Central Board of Indirect Taxes and Customs (CBIC), has taken a bold and praiseworthy step towards simplifying the customs framework. On October 24, 2025, it issued Notification No. 45/2025-Customs. This is not a new tax, but a massive consolidation exercise that will come into effect from November 1, 2025.
This move is at the heart of the government’s “Ease of Doing Business” initiative. For decades, importers, exporters, and customs brokers had to navigate a complex web of notifications. This new directive cleans up the clutter by merging 31 different notifications into one single document.
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This article provides a detailed analysis of what this notification means, what has changed, and what actions your business must take to stay compliant.
Customs Simplification: 31 Exemptions Consolidated into One.
The recent issue of this Customs Notification is a praiseworthy step by the government of India towards customs transparency and consolidation. Around 31 notifications spanning from 1957 to 2025 have been clubbed into a single Notification No. 45/2025 dated 24th October, 2025, with effect from 1st November, 2025.
Purpose: Why This Change Was Needed.
The old customs notifications were disparate, meaning they were issued at different points in time to meet specific requirements. This led to a system where some provisions were duplicates, some were scattered across various documents, and some had become redundant or irrelevant. The government has consolidated all these into a single reference, keeping what is relevant to the current time and the context of ease of doing business in India.
Scope: The New Four-Table Structure.
The Notification has four key Tables, each focusing on a specific type of exemption or category of goods. Each table is supported by Annexures listing eligible goods and the conditions for availing the exemption.
Table I: Broad-based goods exempted from Basic Customs Duty and IGST.
| S. No. | Category | Example Goods | Purpose / Benefit |
|---|---|---|---|
| 1. | Electric Vehicles & Batteries | Lithium-ion battery cells, EV chargers | Encourages domestic EV manufacturing and greener mobility |
| 2. | Medical Equipment & Drugs | MRI scanners, oncology drugs, pacemakers | Reduces cost of essential healthcare imports |
| 3. | Electronics Manufacturing Inputs | Semiconductor wafers, camera modules, chip components | Boosts local production under the PLI scheme |
Table II: Sector-Specific Exemption under Special Conditions or Schemes.
This applies to goods imported under specific projects, concessional schemes, or end-use conditions.
| S. No. | Category | Example Goods / Scheme | Impact / Benefit |
|---|---|---|---|
| 1. | Mega Infrastructure Projects | Equipment for metro rail, airport expansion | Reduces capital cost of public infrastructure |
| 2. | Research & Education | Scientific instruments for recognized universities | Supports innovation and education |
| 3. | Defence Imports | Specialized defence equipment, radar parts | Enhances national security readiness |
Table III: Exemption from Custom Duty, IGST & Compensation Cess.
Scope: Includes goods where all three levies (BCD, IGST, Cess) are reduced or exempted.
| S. No. | Category | Example Goods | Impact / Benefit |
|---|---|---|---|
| 1. | Green Energy Equipment | Hydrogen fuel cell components, battery storage systems | Encourages transition to clean energy |
| 2. | Automotive Inputs | Electric bus kits, hybrid vehicle parts | Supports eco-friendly public transport |
| 3. | Critical Pharmaceuticals | Rare disease drugs, imported APIs | Makes life-saving medicines more affordable |
Table IV: Valuation Based exemptions – Carrier Media Containing Software or Data.
Scope: Applies to imports of software, data, or digital media, where customs duty is charged only on the cost of the physical medium (e.g., CD, hard drive) and not the value of software or data itself.
| S. No. | Type | Example Goods | Explanation |
|---|---|---|---|
| 1. | Digital Media Imports (3706) | Software DVDs, hard drives with preloaded programs | Duty applies only to cost of medium + freight & insurance |
| 2. | Cloud or Data Transfer (8523) | Data on electronic storage sent for system updates | Supports IT, software services, and digital R&D |
Note: Most concessions are time-specific and will expire on 31st March, 2026, 2027 or 2029, subject to policy review.
What is Changing: The Core Details.
1. The 31-in-1 Consolidation.
This is the biggest change. Notification 45/2025 supersedes (replaces) 31 older notifications. The most important one being replaced is the main “Jumbo” exemption notification, Notification No. 50/2017-Customs. Along with this, 30 other standalone notifications are also being merged. (A full list is provided below).
2. Only Two Minor Technical Changes.
The CBIC has confirmed that no existing exemption or benefit is being taken away. The entire exercise is to maintain all benefits as they were, just in a new place. Only two minor technical corrections have been made for clarity:
- Pharmaceuticals (A Benefit): The old Entry 166A of 50/2017 (which applied a 5% duty on bulk drugs for Poliomyelitis Vaccine and Monocomponent Insulins) has been omitted. This is good news, as these drugs now fall under a different serial number in the new notification which attracts Nil (0%) duty.
- Aviation Sector: An existing exemption for supplies to Indian Air Force aircraft has been expanded. It now clearly includes supplies made by Air India Engineering Services Limited (AIESL).
3. Related “Housekeeping” Notifications.
You may also see other notifications issued on the same day, like Notification No. 44/2025-Customs or No. 18/2025-IGST Rate. You do not need to worry about these. They are “consequential amendments.” Their only job is to update *other* laws (like those for Social Welfare Surcharge, Health Cess, AIDC, and GST) to stop referring to the old, invalid 50/2017 and start referring to the new 45/2025. It’s a simple legal cleanup.
The Full List: 31 Notifications Now Replaced.
Effective November 1, 2025, the primary exemption Notification No. 50/2017-Customs (dated 30-Jun-2017) is superseded. Along with it, the following 30 other standalone notifications are also merged into Notification 45/2025:
| Serial No. | Notification Number | Date of Issue |
|---|---|---|
| 1 | No. 1/2025-Customs | 16-Jan-2025 |
| 2 | No. 57/2022-Customs | 17-Nov-2022 |
| 3 | No. 32/2019-Customs | 30-Sep-2019 |
| 4 | No. 19/2019-Customs | 06-Jul-2019 |
| 5 | No. 86/2017-Customs | 14-Nov-2017 |
| 6 | No. 36/2017-Customs | 30-Jun-2017 |
| 7 | No. 37/2017-Customs | 30-Jun-2017 |
| 8 | No. 29/2017-Customs | 30-Jun-2017 |
| 9 | No. 41/2017-Customs | 30-Jun-2017 |
| 10 | No. 32/2017-Customs | 30-Jun-2017 |
| 11 | No. 30/2017-Customs | 30-Jun-2017 |
| 12 | No. 16/2017-Customs | 20-Apr-2017 |
| 13 | No. 5/2017-Customs | 02-Feb-2017 |
| 14 | No. 130/2010-Customs | 23-Dec-2010 |
| 15 | No. 81/2005-Customs | 08-Sep-2005 |
| 16 | No. 121/2003-Customs | 01-Aug-2003 |
| 17 | No. 25/1998-Customs | 02-Jun-1998 |
| 18 | No. 39/1996-Customs | 23-Jul-1996 |
| 19 | No. 51/1996-Customs | 23-Jul-1996 |
| 20 | No. 50/1996-Customs | 23-Jul-1996 |
| 21 | No. 154/1994-Customs | 13-Jul-1994 |
| 22 | No. 152/1994-Customs | 13-Jul-1994 |
| 23 | No. 148/1994-Customs | 13-Jul-1994 |
| 24 | No. 147/1994-Customs | 13-Jul-1994 |
| 25 | No. 146/1994-Customs | 13-Jul-1994 |
| 26 | No. 104/1994-Customs | 16-Mar-1994 |
| 27 | No. 207/1989-Customs | 17-Jul-1989 |
| 28 | No. 326/1983-Customs | 23-Dec-1983 |
| 29 | No. 80-Customs | 29-Aug-1970 |
| 30 | No. 3-Customs | 08-Jan-1957 |
Conditions for Claiming Exemptions.
While the notification simplifies finding the exemption, it does not remove the conditions for claiming it. There are specific requirements for every exemption, which may include:
- End-use certification (proving the goods are used for the specified purpose).
- Manufacturer declarations.
- Approval from specific governmental authorities (e.g., Ministry of Health, Ministry of Defence).
Long-Term Impact for Indian Businesses.
- Easier Compliance: A single Notification will facilitate faceless assessment and reduce chances of ambiguity and litigation.
- Better Ease of Doing Business: A single source for reference will make it much faster and easier for businesses to determine their duty liabilities.
- Increased Competitiveness: This transparency enhances the competitiveness of India from an investor’s perspective, making the trade environment more predictable.
What This Means for Your Business (A Step-by-Step Guide).
This is a positive change, but it requires immediate action from all importers.
Step 1: Stop Using Old Notifications.
As of November 1, 2025, any reference to Notification 50/2017 or the 30 other notifications in the table above is invalid for new Bills of Entry. Stop citing them immediately.
Step 2: Re-Map Your Exemptions (The Most Critical Step).
This is the most important action. You must find where your old exemption is located in the new Notification 45/2025.
- Make a list of the goods you regularly import.
- Find the old Serial Number (S. No.) you used under Notification 50/2017.
- Go through Notification 45/2025 to find the new S. No. that corresponds to your product.
- Update your internal product master files, ERP systems, and SOPs with these new S. Nos.
Step 3: Update Your Documentation & CHA.
When preparing your import documents, especially the Bill of Entry, you must ensure you are citing the correct new notification.
- Old Entry (INVALID): “Availing benefit under S. No. XXX of Notification No. 50/2017-Customs.”
- New Entry (CORRECT): “Availing benefit under S. No. YYY of Notification No. 45/2025-Customs.”
Ensure your Customs House Agent (CHA) or broker is fully aware of this and is using the new S. Nos. for your clearances.
Conclusion: A Simpler Future for Indian Trade.
This consolidation by the CBIC is a very welcome, professional move. It cuts through decades of accumulated, complex rules and presents a single, clear framework for importers.
While it requires a one-time effort from businesses to re-map their exemptions, the long-term benefits are immense. This will lead to faster customs clearance, fewer disputes with the department over interpretation, and a significant reduction in the compliance burden for businesses of all sizes. It is a clear and positive step towards making India a more transparent and efficient place to do business.
Trusted Resources
To ensure your information is authentic, always refer to official government sources for the full text and clarifications:
- Central Board of Indirect Taxes and Customs (CBIC)
- Press Information Bureau (PIB), Government of India
Disclaimer:
The information provided in this article is for informational and educational purposes only. It is based on publicly available information and notifications as of October 2025. Tax laws and customs regulations are subject to change and interpretation. This article should not be considered as legal, financial, or tax advice. Readers are strongly advised to consult with a qualified professional, such as a customs broker or tax consultant, for advice specific to their situation before making any business decisions. The author or publisher does not accept any liability for any loss or damage caused by reliance on the information contained in this article.
C.K. Gupta
Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.
