The Ministry of Finance has issued Notification No. 40/2025-Customs dated September 25, 2025, extending key customs duty exemptions for critical infrastructure projects under Notification No. 50/2017-Customs. The changes will come into effect from September 30, 2025.
According to the Central Board of Indirect Taxes and Customs (CBIC), the validity of exemptions on imports under several serial numbers of the customs tariff has been extended from September 30, 2025, to September 30, 2027.
- For S. No. 597, specific exemptions will lapse earlier: item (i) ends on September 30, 2025, while items (iii) and (v) continue until September 30, 2027.
- At S. No. 598, goods for Mega Power Projects—thermal and hydel—will continue to enjoy nil duty up to September 30, 2027.
- S. No. 601, covering “all goods” under heading 9801, will remain at a 5% duty rate until September 30, 2027.
- Imports for Nuclear Power Projects (S. No. 602) and Water Supply Projects (S. No. 603) will also retain nil customs duty until September 30, 2027.
The government said the extension aims to support power generation and infrastructure projects of national importance by easing import costs and facilitating timely execution.
Table
| S.No. | Chapter or Heading or sub–heading or tariff item | Description of goods | Standard rate | Integrated Goods and Services Tax | Condition No. |
| (1) | (2) | (3) | (4) | (5) | (6) |
| 598. | 9801 | Goods required for setting up of any Mega Power Project specified in List 31, so certified by an officer not below the rank of a Joint Secretary to the Government of India in the Ministry of Power before the 19th day of July, 2012, that is to say,
(a) a thermal power plant of a capacity of 700MW or more, located in the States of Jammu and Kashmir, Sikkim, Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura; or (b) a thermal power plant of a capacity of 1000MW or more, located in States other than those specified in (a); or (c) a hydel power plant of a capacity of 350MW or more, located in the States of Jammu and Kashmir, Sikkim, Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura; or (d) a hydel power plant of a capacity of 500MW or more, located in States other than those specified in clause I Provided that nothing contained in this S. No. shall have effect after the 30th September, 2025 to 30th September, 2027. |
Nil | – | 95 and 111 |
| 601. | 9801 | All goods
Provided that nothing contained in this S. No. shall have effect after the 30th September, 2025 to 30th September, 2027. |
5% | – | 111 |
| 602. | 9801 | Goods required for setting up of any Nuclear Power Project specified in List 32, having a capacity of 440 MW or more, as certified by an officer not below the rank of a Joint Secretary to the Government of India in the Department of Atomic Energy
Provided that nothing contained in this S. No. shall have effect after the 30th September, 2025 to 30th September, 2027. |
Nil | – | 96 and 111 |
| 603. | 9801 | Water Supply Projects
Explanation. – Water supply projects notified under the heading 9801 against item numbers 26 and 26A of notification No. 42/96-Customs, dated the 23rd July, 1996 G.S.R. 294 (E), dated the 23rd July, 1996. Provided that nothing contained in this S. No. shall have effect after the 30th September, 2025 to 30th September, 2027. |
Nil | – | 111 |
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/09/cst-40-2025.pdf
