Baggage Rules 2026
In a welcoming move the Hon’ble Finance Minister has announced overhaul of existing baggage Rules to protect honest taxpayers for payment of amount in lieu of penalty.
The revised Baggage Rules strike the right balance between facilitation and enforcement, combining higher duty-free limits upto 75,000 per person with digital compliance and a trust-based settlement mechanism for honest travellers. By enhancing duty-free thresholds and replacing penalties with a settlement-based approach for bona fide cases, the new Baggage Rules mark a decisive shift towards a passenger-friendly customs regime.
The overhaul of the Baggage Rules reflects a mature, trust-led enforcement philosophy—modernising compliance while reducing unnecessary penal consequences for honest taxpayers.”
Budget 2026 Throws Lifeline to Fishing Industry with Customs Relief
Budget 2026 brings a big relief to the fishing sector by allowing duty-free entry of fish caught by Indian-flagged vessels in international waters. Importantly, if the catch is landed at a foreign port, it will be treated as an export. The proposed amendment is aimed to clear long-standing uncertainties over import treatment, overseas landings, and customs compliance, helping Indian fishermen compete globally.
Relief to FMCG sector on post sale discounts
A major source of litigation in the FMCG sector has been the taxability of post-sale discounts. The proposed amendment to Section 15(3)(b) pragmatically resolves a long-standing source of FMCG litigation by aligning GST treatment of post-sale discounts with commercial reality.
While particularly impactful for FMCG, the proposed change will benefit all sectors that rely on post-sale discounting as a commercial tool. Most importantly granting retrospective effect to the amendment would significantly reduce legacy disputes and reinforce the government’s commitment to litigation reduction and advance the government’s ease-of-doing-business vision.
Budget 2026 Extends Validity of Customs Advance Ruling
By extending the validity of advance rulings obtained under the Customs Act from three to five years, Budget 2026 provides much-needed certainty to trade, reduces litigation, and promotes uniformity by curbing divergent practices across customs houses.
Ease of doing business – customs clearance
The customs-related initiatives announced in Budget 2026 represent a decisive push towards simplifying cross-border trade in line with the Government’s Ease of Doing Business vision. The proposal to integrate cargo clearance approvals from multiple government agencies through a single digital window, along with immediate clearance for goods without compliance requirements, will significantly reduce dwell time and transaction costs for trade. The planned rollout of the Customs Integrated System as a unified and scalable platform over the next two years, coupled with the phased expansion of AI-enabled non-intrusive scanning across major ports, will minimize manual intervention, enhance risk-based assessment, and improve transparency. Overall, these measures are expected to substantially improve cargo clearance efficiency and are a highly welcome step for the trading community.
Settlement of disputes Within 30 Days of Notice without imposition of penalty
Budget 2026 introduces a pragmatic dispute-resolution mechanism by allowing settlement of a case within 30 days of issuance of Section 28 notice through payment of duty, interest, and a 15% charge in lieu of penalty. The said amendment will interest foreign investors and taxpayers who would prefer to avoid litigations without the adverse deterrent impact of penal action.
Sharing an expert perspective from Jitendra Motwani, Partner- Tax Practice, Trilegal on the proposals announced in the Union Budget 2026–27.
Jitendra Motwani