The DGFT issued a major trade-facilitation measure by amending Para 4.63 of the Foreign Trade Policy (FTP) 2023, expanding tax exemptions available on imports under the Diamond Imprest Authorisation (DIA) scheme. The amendment has been notified through Notification No. 49/2025-26, dated 09th December 2025.
Under the revised provision, imports under DIA — in addition to existing exemptions from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty — are now also exempt from the entire Integrated Tax and Compensation Cess leviable under Section 3 (7) and 3 (9) of the Customs Tariff Act, 1975 (51 of 1975).
Key Benefit of the Amendment
- Importers under the Diamond Imprest Authorisation will not be required to pay Integrated Tax (IGST) and Compensation Cess, providing significant liquidity support and improving trade competitiveness.
Implementation
The amendment is effective immediately from the date of issue of the notification and comes with the approval of the Hon’ble Minister of Commerce & Industry.
Background
The Diamond Imprest Authorisation facilitates imports of rough diamonds for further processing and export, forming a crucial support mechanism for the Indian gem & jewellery sector. The newly extended tax relief is expected to boost exports, reduce financial burden and strengthen India’s position in global diamond trade.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/12/Notification-No.-44-English.pdf
