Govt raises duty-free limit to ₹75,000; customs duty on personal imports slashed

Govt raised duty-free import limit to ₹75,000; customs duty on personal goods cut to 10%, with exemptions for cancer and rare disease medicines

The government has announced significant changes to baggage and customs rules, offering relief to passengers and consumers. Under the newly-notified Baggage Rules, 2026, the duty-free allowance for passengers bringing imported goods into India has been raised from ₹50,000 to ₹75,000. The revised rules, effective from Monday, permit clearance of goods worth up to ₹75,000 carried on the person or in bona fide baggage.

Certain items, however, remain excluded from this relaxation. These include firearms, cartridges exceeding 50, cigarettes beyond 100 sticks, cigars over 25, tobacco above 125 grams, alcohol exceeding two litres, gold or silver in forms other than ornaments, and televisions. For foreign tourists entering India by means other than land routes, the duty-free limit has been increased to ₹25,000 from the earlier ₹15,000.

In a parallel move, the Union Budget for 2026-27 has proposed a major cut in customs duty on goods imported for personal use. The basic tariff rate has been reduced from 20% to 10%, aimed at rationalising the duty structure and lowering household costs. This reduction is expected to make personal imports such as smartphones, laptops, and other electronic items more affordable, particularly those sourced from markets like the United States where new models are often released earlier at competitive prices.

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The Budget also introduced measures to ease the financial burden on patients. Basic customs duty has been exempted on 17 drugs and medicines used in cancer treatment. Additionally, seven more rare diseases have been included under the exemption framework, covering drugs, medicines, and Food for Special Medical Purposes required for their treatment.

These changes are expected to benefit both frequent travellers and consumers, while also providing critical relief to patients requiring specialized medicines. By raising the duty-free limit and reducing customs duties, the government aims to simplify import rules, lower costs, and ensure better access to essential goods and healthcare products.

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