CBIC-20016/39/2024-GST-SECTION Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing *****
Room No.159-A , North Block, New Delhi, 7th February, 2025
Instruction No. 02/2025 - GST: Procedure to be followed in department appeal filed against interest and/or penalty only, related to Section 128A of the CGST Act, 2017
To,
All the Principal Chief Commissioners /Chief Commissioners of the Central Tax
Madam/Sir,
Subject: Procedure to be followed in department appeal filed against interest and/or penalty only, related to Section 128A of the CGST Act, 2017 -regarding.
Kind attention is invited to the Section 128A of the Central Goods and Service Tax Act, 2017 (hereinafter referred as ‘the CGST Act’) read with Rule 164 of the Central Goods and Service Tax Rules, 2017 (hereinafter referred as ‘the CGST Rules’) which provides waiver of interest or penalty or both, relating to demands under section 73 of the CGST Act pertaining to Financial Years 2017-18, 2018-19 and 2019-20, subject to certain conditions. Further vide Circular No. 238/32/2024-GST dated 15th October, 2024, various doubts related to section 128A were clarified.
2. In this regard, references have been received from various field formations seeking clarification from the Board as to whether the benefit of section 128A (supra) be extended to taxpayers in cases where the tax amount has been paid but the department has gone in Appeal on the basis of wrong arithmetic calculation of interest, or where penalty is either not imposed or imposed less than the prescribed threshold etc.
3. The matter has been examined by the Board. It has been observed that at S. No. 4 of the Table under para 4 in the aforesaid circular, it is clarified that cases where the tax due has already been paid and the notice or demand orders under Section 73 only pertains to interest and/or penalty involved, the same shall be considered for availing the benefit of section 128A.
Hence, it is evident that in cases where the taxpayer has paid the full amount of tax and only interest and/or penalty is in dispute by the taxpayer, then he is eligible to avail the benefit of Section 128A of the CGST Act. On the similar pattern, it is felt that just because the department has gone in appeal or is in the process of filing an appeal, a taxpayer who is otherwise eligible for availing the benefit of section 128A, should not be denied the benefits. Further the intention of the said provision is to reduce litigation and a taxpayer should not be denied the benefit of the provision on mere technicalities.
4. Based on the above, it is decided that in cases where the tax amount has been fully paid by the taxpayer on demands made under section 73 of the CGST Act and the department is in appeal or under the process of filing an appeal only on account of wrong interest calculation and/or wrong imposition or non-imposition of penalty amount under the provisions of CGST Act or IGST Act and the taxpayer fulfils other conditions of section 128A and the rules made thereunder, the proper officer may proceed towards withdrawing such appeal filed and in case where the order under section 73 is under review stage only, accept the same.
5. Difficulties, if any, in the implementation of these instructions may be informed to the Board.
📘 Frequently Asked Questions (FAQs) on Instruction No. 02/2025-GST
Q1: What is the purpose of Instruction No. 02/2025-GST?
Answer: It clarifies the procedure to be followed when the department files or intends to file an appeal under Section 73 of the CGST Act, but the dispute pertains only to interest and/or penalty (not the core tax amount). It ensures taxpayers aren’t denied the benefit of Section 128A due to technicalities. —
Q2: What does Section 128A of the CGST Act cover?
Answer: Section 128A allows waiver of interest and/or penalty for tax demands under Section 73 for the Financial Years 2017–18, 2018–19, and 2019–20. The waiver applies if the principal tax is paid and other prescribed conditions are fulfilled. —
Q3: When can the benefit of Section 128A be availed?
Answer: ✅ When full tax has been paid ✅ The dispute is only over interest and/or penalty ✅ Other eligibility criteria under Section 128A are satisfied ✅ Even if the department is in appeal or planning an appeal, the taxpayer remains eligible —
Q4: What scenario does Instruction No. 02/2025-GST address?
Answer: It addresses instances where: 📌 The department is appealing due to miscalculation of interest 📌 The penalty is not levied as per expectations 📌 The core tax is already paid In such cases, officers may withdraw appeals or accept orders under review. —
Q5: Can an appeal be withdrawn by the department?
Answer: Yes. If the appeal only involves interest or penalty and the taxpayer qualifies for benefits under Section 128A, the department is advised to: 🔁 Withdraw the appeal (if already filed) ✅ Accept the adjudication order (if under review stage) —
Q6: What’s the key message from this instruction?
Answer: ⚖️ Don’t deny eligible taxpayers the relief of Section 128A due to technicalities like ongoing or future departmental appeals. 🛑 Focus should be on reducing litigation and simplifying compliance. —
Q7: Does this apply to IGST cases too?
Answer: Yes. The same principle applies to interest and/or penalty appeals under IGST Act as well, provided Section 128A conditions are met. 💡 Need help verifying your eligibility? Visit: https://finodha.in/gst-compliance/ —
Q8: What should taxpayers do if the department is appealing their case?
Answer: ✅ Check if you’ve paid the full tax under Section 73 ✅ Evaluate if the dispute is only on interest/penalty ✅ Request the officer to withdraw the appeal based on this instruction ✅ Keep proof of MoF/CBIC compliance circulars (like this one) for reference —
Q9: How does Finodha help in appeal or review situations?
Q10: Where can one read the original instruction or get updates?
Answer: ✔ Official CBIC site under GST Instructions ✔ Through GST advisors like Finodha → https://finodha.in/gst-compliance/ ✔ Legal consultants or chartered accountants dealing in indirect tax —
✅ Conclusion:
Instruction No. 02/2025-GST streamlines GST litigation by ensuring taxpayers aren’t penalized due to departmental technical appeals. Eligible taxpayers must leverage this for penalty relief and quicker resolution.
📢 For Section 128A waiver application, appeal withdrawal drafting, or GST review case strategy — consult Finodha’s experts.
F. No. 190341/12/2025-TRU Government of India Ministry of Finance Department of Revenue (Tax Research Unit)
North Block, New Delhi Dated the 31.01.2025
Information received from Ministry of Civil Aviation (MoCA) with respect to Gazette notification No. 08/2024 - Integrated Tax (Rate) dated 08.10.2024 notified by Department of Revenue.
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (All) / The Principal Director Generals/ Director Generals (All)
Madam/Sir,
Subject: Information received from Ministry of Civil Aviation (MoCA) with respect to Gazette notification No. 08/2024 - Integrated Tax (Rate) dated08.10.2024 notified by Department of Revenue- reg.
The undersigned is directed to refer to O.M. dated 20.01.2025 (copy enclosed)from Ministry of Civil Aviation (MoCA) providing information in respect of Gazette notification No. 08/2024 - Integrated Tax (Rate) dated 08.10.2024 notified by Department of Revenue.
2.I t may be recalled that based on recommendations of the 54th GST Council meeting held on 09.09.2024 import of services by an establishment of a foreign airlines company from a related person or any of its establishment outside India, when made without consideration was exempted subject to following conditions:
Provided that GST at applicable rates is paid by the establishment of the foreign airline company in India on transport of goods and passengers as may be applicable;
Provided that Ministry of Civil Aviation certifies that the establishment of the foreign company in India is that of an airline company which has been designated by the foreign government under the applicable bilateral air services agreement with India;
Provided further that, Ministry of Civil Aviation certifies that on a reciprocal basis, designated Indian airlines are not subject to levy of similar taxes by whatever name called for the same services appearing under the entry, by the Government of the country designating the foreign airline company.
3. The second and third conditions, reproduced above relate to MoCA. With respect to second condition MoCA has provided a list of designated foreign airlines that are currently operating from India as per ongoing Winter 2024-25 schedule [Annexure I of the O.M].
3.1 With respect to third condition, MoCA has informed that the matter was discussed with Indian carriers operating international services and comments received from the Indian carriers namely, Air India, IndiGo and Akasa Air have also been shared [Annexure II to the O.M.].
4. The O.M. received from MoCA along with the relevant Annexures is being placed on the CBIC website for information of the field formations.
Encl: As above
Yours faithfully, Smita Roy Technical officer TRU-II
📘 Frequently Asked Questions (FAQs) on Instruction No. 01/2025-GST
Q1: What is the essence of Instruction No. 01/2025-GST?
Answer: The instruction clarifies the implementation of Notification No. 08/2024 – Integrated Tax (Rate) dated 08.10.2024. It provides IGST exemption on import of services by foreign airline companies from related establishments outside India, if done without consideration and under strict conditions certified by the Ministry of Civil Aviation (MoCA). —
Q2: Which services qualify for this exemption?
Answer: This applies to "import of services" by a foreign airline’s Indian establishment from its related party abroad (like parent company, overseas branches), provided the services are rendered without consideration and the specified conditions are met. —
Q3: What are the key conditions for claiming IGST exemption?
Answer: ✅ GST must be paid on domestic passenger and goods transportation in India. ✅ MoCA must certify the Indian establishment is that of a designated foreign airline under an official bilateral Air Services Agreement. ✅ MoCA must certify that designated Indian airlines are not taxed similarly in the foreign airline’s home country (reciprocal tax treatment). —
Q4: What is MoCA’s role in this context?
Answer: MoCA is responsible for issuing two key certifications: ✈️ One confirming the airline's designation under a bilateral agreement 🌍 One verifying that Indian airlines are not subject to equivalent foreign taxes, ensuring reciprocity MoCA’s certification is mandatory for the exemption to apply. —
Q5: Has MoCA shared any actionable lists with CBIC?
Answer: Yes. 📋 Annexure I: List of designated foreign airlines operating in India under the Winter 2024-25 schedule. 🛫 Annexure II: Comments from Indian airlines (Air India, IndiGo, Akasa) affirming reciprocal tax treatment by foreign nations. —
Q6: Is this exemption applicable where services are received with consideration?
Answer: ❌ No. The exemption is strictly limited to services received without consideration. If any payment is involved, IGST shall apply as per normal provisions under the IGST Act. —
Q7: What happens if the conditions are not met?
Answer: If any of the conditions—GST payment in India, MoCA certification, or reciprocity—are not fulfilled: 🚫 The exemption under Notification No. 08/2024 is not available. 📄 The services would then be liable to tax under the reverse charge mechanism in accordance with IGST rules. —
Q8: How does this impact designated foreign airlines operating in India?
Answer: It provides significant cost savings for foreign airlines operating in India by exempting IGST on internal support services received from overseas offices—if compliance is ensured. It also encourages bilateral tax parity in civil aviation. Need help with compliance? Finodha has you covered: https://finodha.in/gst-compliance/ —
Q9: How can Indian businesses or airline agents use this instruction?
Answer: ✈️ Airline representatives should coordinate with MoCA to secure the required certifications. 📋 Documentation must be maintained to prove services are received without consideration. 💼 GST filings must clearly mention IGST exemption reference and CBIC instruction. —
Q10: Can Finodha assist with aviation GST and customs compliance?
Instruction No. 01/2025 - GST and Notification 08/2024 – Integrated Tax (Rate) offer a vital tax benefit to foreign airlines, provided MoCA certification and bilateral reciprocity are in place. Businesses must ensure full compliance to leverage this exemption.
📢 For GST compliance, aviation tax strategies, or MoCA documentation, consult Finodha today.
Instruction No. 01/2025-GST फा. सं. GST/INV/Instructions/21-22 वित्तमंत्रालय राजस्वविभाग केन्द्रीय अप्रत्यक्ष करएवंसीमाशुल्कबोर्ड GST-Investigation Wing
10 वाँ माला, टावर-2, जीवन भारती बिल्डिंग कनॉट सर्कस, नई दिल्ली-110001. दिनांक 13 जनवरी 2025
Instruction No. 01/2025 - GST: Guideline for arrest and bail in relation to offences punishable under the CGST Act, 2017
(Amendment to Instruction No. 02/2022-23 GST (Investigation) dated 17.8.2022)
SUBJECT: GUIDELINES FOR ARREST AND BAIL IN RELATION TO OFFENCES PUNISHABLE UNDER THE CGST ACT, 2017 - REG.
Please refer to Instruction No. 02/2022-23 GST (Investigation) dated 17.8.2022 on the above subject
Hon'ble High Court of Delhi in case of KSHITIJ GHILDIYAL versus DIRECTOR GENERAL OF GST INTELLIGENCE, DELHI [W.P. (CRL) No. 3770/2024], vide judgement dated 16.12.2024, has held that the grounds of arrest have to be communicated in writing to the arrested person. In coming to this conclusion, the Hon'ble High Court has relied on the judgements of Hon'ble Supreme Court the cases of Pankaj Bansal Versus Union of India & Ors., Criminal Appeal Nos. 3051-3052 of 2023 {@ Special Leave Petition (Crl.) Nos. 9220 21 of 2023} dated 3rd October, 2023, and PRABIR PURKAYASTHA Vs STATE (NCT OF DELHI), CRIMINAL APPEAL (D. No. 42896/2023) Judgement dated 15th May, 2024.
In this context it is relevant to note the distinction between 'reasons for arrest' and 'grounds of arrest' made by the Hon'ble Supreme Court in the case of PRABIR PURKAYASTHA VS STATE (NCT OF DELHI), CRIMINAL APPEAL (D. No. 42896/2023). The relevant para of the said Judgement dated 15th May, 2024, reads as follows:
"49. It may he reiterated at the cost of repetition that there is a significant difference in the phrase 'reasons for arrest 'and 'grounds of arrest . The 'reasons for arrest 'as indicated in the arrest memo are purely formal parameters, viz., to prevent the accused person from committing any further offence; or proper investigation of the offence; to prevent the accused person from causing the evidence of the offence to disappear or tempering with such evidence in any manner; to prevent the arrested person for making inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him from disclosing such facts to the Court or to the Investigating Oficer.
These reasons would comnmonly apply to any person urrested on charge ofu erime whereas the 'grounds of arrest ' would be required to contain all such details in hand of the Investigating Officer which necessitated the arrest of the accused. Simultaneously, the grounds of urrest informed in wrilting must convey to the arrested accused. all basic facts on which he was being arrested so as to provide him an opportunity of defending himself against custodial remand and to seek bail. Thus, the 'grounds of arrest' would invariably be personal to the accused and cannot be equated with the 'reasons of arrest' which are general in nature."
In light of the above, Para 4.2.1 of Instruction 02/2022-23 GST (Investigation) dated 17.8.2022 is amended and may be read as follows -
Para 4.2.1 The grounds of arrest must be explained to the arrested person and also furnished to him in writing as an Annexure to the Arrest Memo. Acknowledgement of the same should be taken from the arrested person at the time of service of the Arrest Memo.
Principal Chief Commissioner(s)/ Chief Commissioner(s) of CGST, All Zones.
Principal Director General [DGGI], New Delhi.
Webmaster, CBIC (www.cbic.gov.in) for uploading on the website of CBIC under Instructions.
📘 Frequently Asked Questions (FAQs) on Instruction No. 01/2025-GST
Q1: What is Instruction No. 01/2025-GST?
Answer: It’s an official amendment by CBIC to prior arrest and bail procedures under the CGST Act, 2017. Issued in May 2025, it aligns customs practices with the latest judgments from the Supreme Court and Delhi High Court, emphasizing the mandatory written communication of "grounds of arrest" to the accused. —
Q2: Why was this instruction issued?
Answer: This update was necessitated by the Delhi High Court’s judgment in Kshitij Gildhiyal v. DGGI (Dec 2024), and key Supreme Court decisions in: 📌 Pankaj Bansal v. Union of India (Oct 2023) 📌 Prabir Purkayastha v. State (May 2024) These rulings mandated that arrested individuals must receive written grounds of arrest, not just reasons, ensuring fairness under Article 21 of the Constitution. —
Q3: What’s the difference between “reasons for arrest” and “grounds of arrest”?
Answer: ✍️ Reasons for Arrest = Generic parameters like preventing evidence tampering, influencing witnesses, etc. 🧾 Grounds of Arrest = Personalized facts explaining why this individual is being arrested — essential for defending bail or opposing custody. These must be shared in writing and acknowledged by the accused. —
Q4: What has been amended in Para 4.2.1 of the previous instruction?
Answer: Para 4.2.1 now mandates: 📝 Grounds of arrest must be: — Clearly explained to the accused — Given in writing as an annexure to the arrest memo — Acknowledged by signature at the time of arrest This replaces the previous non-written protocol from Instruction 02/2022-23 GST. —
Q5: How does this protect GST-registered taxpayers?
Answer: This instruction ensures that: ✅ Arrests are not arbitrary ✅ Legal due process is followed ✅ Accused can immediately challenge detention or apply for bail ✅ Investigating officers are held accountable for arrests Need GST legal assistance? Finodha can guide you: https://finodha.in/gst-compliance/ —
Q6: Who must comply with this new guideline?
Answer: This applies to: 🛃 All DGGI, CGST Zones, GST Commissionerates 📋 GST Intelligence Units conducting arrests 👥 Any CGST official authorized to arrest under Section 69 of the CGST Act —
Q7: What rights does an arrested person have under CGST now?
Answer: 🧾 Right to written grounds of arrest 📄 Right to receive a copy of the arrest memo 🛑 Right to remain silent ⚖️ Right to legal counsel and to apply for bail without delay 📌 Right to challenge unlawful arrest in court Finodha helps you protect your compliance profile: https://finodha.in/online-gst-registration/ —
Q8: What happens if the officer fails to provide written grounds?
Answer: Failure to comply with this instruction can lead to: 🚨 Judicial scrutiny and case dismissal ❌ Arrest deemed illegal ⚖️ Court-directed compensation 📝 Internal disciplinary action against the officer —
Q9: How can Finodha assist if a GST-related arrest is anticipated or made?
Answer: Finodha offers: 📁 Legal documentation review ⚖️ Guidance on bail filings 📋 Pre-arrest advisory 🧾 Representation before GST authorities Need fast expert legal support? Visit: https://finodha.in/gst-return-filing/ —
Q10: Where can officers and professionals find this updated instruction?
Answer: ✔ Instruction No. 01/2025-GST is available on the CBIC website under “Instructions” ✔ Shared with all CGST Zones and the Principal Director General of DGGI ✔ Finodha also interprets all such notifications at: https://finodha.in/gst-compliance/ —
✅ Conclusion:
Instruction No. 01/2025 - GST is a significant step toward protecting taxpayer rights and bringing GST enforcement in line with constitutional safeguards and Supreme Court directives.
📢 For compliance, legal consultation, or risk protection during GST audits or proceedings, choose the trusted guidance of Finodha: https://www.finodha.in
Important Keywords: Instruction No. 08/2025 - Customs, Attari ICP closure 2025, Wagah border shutdown, CBIC land customs ban, Indo-Pak trade stop 2025, Finodha GST and border compliance,
Words: 937; Read time: 5 minutes.
Table of Contents
Instruction No. 08/2025 - Customs F. No. 581/09/2023-LC Ministry of Finance Department of Revenue Government of India Central Board of Indirect Taxes & Customs International Customs Division
Room No. 227 A, North Block, New Delhi Dated 05th May, 2025
Instruction No. 08/2025 - Customs: Closing of the Integrated Check Post Attari for all types of incoming and outgoing passengers and movement of goods
To.
All Principal Chief Commissioners/ Chief Commissioners of Customs All Principal Chief Commissioners/ Chief Commissioners of Customs (Prev.) All Principal Chief Commissioners/ Chief Commissioners of CGST & Customs All Principal Director Generals/Director Generals under CBIC
Sir/Madam,
Subject: Closing of the Integrated Check Post, Attari for all types of incoming and outgoing passengers and movement of goods-Regarding.
Kind reference is drawn to Instruction No. 06/2025-Customs dated 26.04.2025 conveying the direction of the Ministry of Home Affairs, Foreigners Division (Immigration Section) vide OM No. 25022/05/2025-Imm. dated 24.04.2025 to close Integrated Check Post (ICP), Attari.
2. Ministry of Home Affairs, Foreigners Division (Immigration Section) vide OM No. 25022/05/2025-Imm. dated 01.05.2025 (copy enclosed) has reviewed and partially modified the direction mentioned in OM even no. dated 24.04.2025.
2.1 OM even no. dated 01.05.2025 inter-alia states that the OM even no. dated 24.04.2025 has been reviewed and in partial modification, it is now ordered that a Pakistani national with Pakistani travel documents may be allowed to exit India to go into Pakistan and an Indian National with Indian travel documents may be allowed to enter India from Pakistan through the Integrated Check Post at Attari, till further orders.
3. Revised instructions are for information and suitable necessary action at your end.
4. This issues with the approval of the Competent Authority.
(Megha Bansal) Under Secretary (Land Customs) Tel: 011-23095438 Email: uslc-cbec@gov.in
Q1: What does Instruction No. 08/2025 - Customs announce?
Answer: Instruction No. 08/2025-Customs, issued by CBIC’s Land Customs Section, reiterates that the Integrated Check Post (ICP) at Attari will continue to remain closed for all types of inbound and outbound passengers and cargo movement. This is a continuation of prior instructions issued under the Ministry of Home Affairs directives. —
Q2: Why has the Attari ICP been closed?
Answer: The closure was initiated in response to national security concerns, including potential cross-border threats and intelligence alerts following recent regional disturbances. It was previously formalized in Instruction No. 06/2025-Customs and reinforced in Instruction No. 07/2025-Customs that banned all trade with Pakistan. —
Q3: Does this closure affect both trade and travel?
Answer: Yes. This closure applies to: 🚫 Commercial import/export of goods 🚫 Movement of passenger traffic via the Wagah-Attari land border 🚫 Customs clearances, inspections, and logistics at Attari ICP —
Q4: What’s the difference between Instruction No. 06 and 08/2025-Customs?
Answer: Instruction No. 06/2025-Customs initiated the closure, while Instruction No. 08/2025-Customs serves to reconfirm and re-enforce the same restriction, indicating the closure is still active and applicable as of May 2025. —
Q5: Are any exemptions permitted under this order?
Answer: ❌ No. There are no exemptions for humanitarian, commercial, or diplomatic reasons unless specifically authorized in writing by the Government of India through the Ministry of Home Affairs. —
Q6: What alternatives are available for Indian exporters and importers?
Answer: ✅ Use sea ports like Mundra, Nhava Sheva ✅ Opt for air cargo for sensitive goods ✅ Reroute through legal land corridors with other countries (e.g., Nepal, Bangladesh) Need assistance realigning your logistics? Finodha can help: https://finodha.in/setup-business/ —
Q7: What should customs brokers and CHA agents do?
Answer: 📌 Stop documentation referencing Attari ICP 📋 Cancel or revise ICEGATE filings for Attari 📦 Notify exporters about customs route blocks 📝 Use alternate port codes where allowed For updated port compliance support: https://finodha.in/gst-compliance/ —
Q8: How does this closure impact India–Pakistan trade relations?
Answer: 📉 India-Pakistan trade through land borders is currently halted 🔒 Security measures override economic engagement 📊 Traders need to pause Pakistani-origin procurement until further notice For trade restructuring post-border ban: https://finodha.in/online-gst-registration/ —
Q9: Can Finodha help businesses impacted by the Attari ICP shutdown?
Q10: How to stay updated on future border or customs developments?
Answer: ✔ Bookmark Finodha’s Customs Circulars section → https://finodha.in/gst-compliance/ ✔ Subscribe to CBIC’s notification service ✔ Follow updates from the Ministry of Home Affairs and DGFT
✅ Conclusion:
Instruction No. 08/2025-Customs signals the continued suspension of passenger and cargo activity through Attari ICP. Businesses must pivot promptly, maintain compliance, and explore alternate trade corridors.
📢 For border compliance, customs rerouting, or GST strategy — Finodha is your trusted trade facilitator: : https://www.finodha.in
Important Keywords: Instruction No. 07/2025 - Customs, Pakistan import ban 2025, CBIC trade restrictions, Para 2.20A FTP 2023, DGFT Pakistan trade ban, Finodha GST customs support,
Words: 1051; Read time: 6 minutes.
Table of Contents
Instruction No. 07/2025 - Customs F. No.401/17/2025-Cus.Ill Government of India Ministry of Finance, Department of Revenue (Central Board of Indirect Taxes & Customs) *****
227A, North Block, New Delhi Dated: 03.05.2025
Instruction No. 07/2025 - Customs: Prohibition on import or transit of all goods originating in or exported from Pakistan – Insertion of Para 2.20A of Foreign Trade Policy (FTP), 2023
To
All Principal Chief Commissioners/ Chief Commissioners of Customs/ Customs (Preventive)/Customs & Central Taxes. All Principal Commissioners/Commissioners of Customs /Customs (Preventive). All Pr. Director General/Director Generals under CBIC.
Subject: Prohibition on import or transit of all goods originating in or exported from Pakistan – Insertion of Para 2.20A of Foreign Trade Policy (FTP), 2023 - reg.
Madam/Sir,
Reference is invited to Notification no. 06/2025-26 dated 02.05.2025 issued by the DGFT under Section 3 read with Section 5 of Foreign Trade (Development & Regulation) Act, 1992, read with paragraph 1.02 end 2.01 of the Foreign Trade Policy (FTP) 2023, as amended from time to time.
2. Vide the aforesaid Notification dated 02.05.2025, a new Para 2.20A has been inserted in Foreign Trade Policy, 2023 as follows with immediate effect: “Para 2.20A: Prohibition on Import from Pakistan Direct or indirect import or transit of all goods originating in or exported from Pakistan, whether or not freely importable or otherwise permitted, shall be prohibited with immediate effect, until further orders. This restriction is imposed in the interest of national security arid public policy. Any exception to this prohibition shall require prior approval of the Government of India.”
3. Thus, under Para 2.20A of FTP, 2023, direct or indirect import or transit of all goods originating in or exported from Pakistan is Prohibited with immediate effects until further orders.
4. In view of the above, it is requested that necessary action may be taken to sensitize officers under your jurisdiction regarding the said matter.
5. The difficulties, if any, may be brought to the notice of the Board.
Q1: What does Instruction No. 07/2025 - Customs announce?
Answer: Instruction No. 07/2025 - Customs notifies the immediate prohibition of direct or indirect import and transit of all goods originating in or exported from Pakistan. This is pursuant to Para 2.20A inserted into the Foreign Trade Policy (FTP) 2023 by DGFT Notification No. 06/2025-26 dated 02.05.2025. —
Q2: What is Para 2.20A in the Foreign Trade Policy 2023?
Answer: Para 2.20A reads: “Direct or indirect import or transit of all goods originating in or exported from Pakistan, whether or not freely importable or otherwise permitted, shall be prohibited with immediate effect until further orders.” It aims to protect national security and public policy interests. —
Q3: Is this ban permanent?
Answer: No. The ban is in effect “until further orders.” It can be amended, extended, or revoked by the Government of India based on future diplomatic, trade, or security considerations. —
Q4: What types of goods are affected?
Answer: 🚫 All categories of goods—raw materials, semi-finished items, finished products—whether commercial, industrial, or consumer-use, are covered. 📦 No exemption exists by product category without specific approval from the Government of India. —
Q5: Does the ban include re-routed or transshipped goods?
Answer: Yes. The ban includes indirect imports and goods in transit, even if routed through third countries. Any origin declared as Pakistan or re-exported from Pakistan falls under this restriction. 💡 Need clarification on product origin rules? Contact Finodha: https://finodha.in/gst-compliance/ —
Q6: Is there a way to get exemptions under the ban?
Answer: ✅ Yes—but only under strict conditions. As per Para 2.20A, any exception requires prior written approval from the Government of India. Businesses must apply via proper channels and justify the exemption on legal and strategic grounds. —
Q7: How are customs and ports instructed to respond?
Answer: Customs officers across India are instructed to: 📋 Halt clearance of any consignment linked to Pakistan 🚫 Refuse any transit or import documentation 📢 Sensitize field staff to enforce the ban strictly Any discrepancies or violations must be reported to CBIC. —
Q8: How should traders and importers respond?
Answer: ✅ Immediately discontinue any ongoing or planned procurement from Pakistani suppliers ✅ Inform logistics providers and customers ✅ Avoid rerouting goods with Pakistani origin through alternate ports ✅ Seek compliance support to prevent regulatory action Need route/partner restructuring? Finodha helps you navigate trade bans smartly: https://finodha.in/setup-business/ —
Q9: What happens to goods already in transit from Pakistan?
Answer: If such goods are en route or held at ports, they will be denied entry and may be subject to seizure or redirection. Importers must coordinate with customs authorities and may need to initiate cancellation or refund actions with suppliers. 📦 Finodha can assist with trade documentation corrections and re-export logistics: https://finodha.in/gst-return-filing/ —
Q10: Can Finodha help with legal, customs, and policy compliance?
Instruction No. 07/2025 - Customs marks a significant step in India's foreign trade policy with Pakistan. All businesses must assess their supply chains and take corrective action immediately to avoid legal and logistical complications.
📢 For expert customs help, FTP guidance, or realignment of your import-export business — Finodha is your trusted compliance partner: https://www.finodha.in
