7 Key Export Opportunities Unveiled in Union Budget 2025-26 for Indian Exporters

Here are the important initiatives an exporter should exploit.

1. Importers and exporters, Bill of Entry / Shipping bill revision Industry

Section 18A, under the Union Budget 2025, has made a new provision for streamlining the procedure of filing an application for voluntary rectification of entries about cleared goods in customs. The facility would be very helpful to the importers and exporters Industry when any correction or updation is required to be done to entries after the clearance of goods.

Key Features of Section 18A: 

(a) Voluntary Revision of Entries

• The importer and exporter may change the entries relating to goods after clearance.
• The change can be done within the prescribed time under the conditions determined by the authorities.

(b)Self-Assessment of Revised Entries

• The revised entries shall be considered as self-assessment; the importer/exporter may correct mistakes in his declarations at the initial stage.
• It may be paid along with the duty on the revised entries based on the updated information or, in case of an overpayment, treated as a refund claim under Section 27.

MYGST Refund Insights: This new provision under Section 18A will add flexibility and efficiency to handling goods clearance and compliance. The importers and exporters will both benefit from this.

1. This provision relieves the burden of importers/exporters, who, upon clearance, realize that an error or omission has been made in their original entry. They can now correct it and ensure the proper payment of duties.

2. It helps in smoother compliance with customs regulations and avoids unnecessary penalties or delays due to entry mistakes.

3. It also streamlines the refund process in case of excess duty payment, and the business can amend their entries and treat them as refund claims

2. Export Duty on Crust Leather reduced to 0% w.e.f 02 February 2025

One of the most significant changes in the budget is the reduction of export duty on crucial products, such as crust leather, from 20% to 0%

MYGST Refund Insight: With the abolition of export duty on crust leather, the prohibition under Section 54 which prohibits GST refund at the time of exports when export duty is levied shall also come to an end. Taxpayers can now file their GST refund claims for the exports of crust leather.

3. Bharat Trade Net Platform for Export Documentation

The launch of the Bharat Trade Net platform, a unified trade documentation and financing platform, promises to make the export process simpler.

MYGST Refund Insights: This will ease the compliance burden on exporters and help them focus more on expanding their business.

4. Export Benefit for Handicrafts:

The export period for handicrafts is extended from six months to one year, and in case of necessity, it is further extended for three months.

Duty-free inputs: Nine more items will be added to the list of duty-free inputs, which will reduce the cost for exporters and make them more competitive.

MYGST Refund Insights: This will reduce compliance burdens on the exporters and let them focus more on expanding their business.

Pro Tip: Using our GST Refund Calculator helps you get the refund effortlessly, thereby making GST easy. Through our tool, you can know the amount you get as your refund or the status of it easily. This way, know your GST refund in a short span of time accurately with the help of our tool.

5. Export Building Toys Under 'Make in India' Initiative

That presents the Make in India initiative as a game-changer for the Indian toy industry itself. It transforms an import-dependent sector into a Global Hub for exports. India will be geared to becoming a significant player in the global toy market, and exports will see a quantum jump in the coming years with strengthened domestic production, increased quality parameters, and sustainability.

• MYGST Refund Insights: With the initiative to develop the toy industry in India, exports will see a significant boost. Additionally, it encourages toy manufacturers to leverage e-commerce platforms, leading to increased sales and higher turnover.

6. Warehousing facility for air cargo

Union Budget 2025-26 has proposed a dedicated warehousing facility for air cargo, making the logistics process easy and cost-efficient. This should enable favorable implications to exporters who are major users of fast and efficient global shipment, including pharmaceuticals, perishable goods, electronic goods, and high-value exports.

MYGST Refund Insights: The exporters would be able to avail of easier GST documentation and refund claims as the goods are stored in the dedicated airport warehouses, especially IGST refunds on exports. This would help ease compliance and get tax credits processed faster.

7.Increased opportunities for GST refunds for businesses:

Export-Oriented Refunds: Extended timeline for exports, which is 6 months → 1 year. Hence, more time to claim refunds. Import of duty-free raw materials, such as leather, minerals, pharma, and electronics, reduces costs and increases refunds.

Inverted Duty Structure (Interactive Flat Panel Display): Increased BCD from 10% to 20%. Potentially higher input tax credits on inputs would mean higher potential GST refunds for manufacturers.

Conclusion:

The Union Budget 2025-26 has introduced a series of transformative initiatives aimed at boosting India's export sector. Key changes, such as the introduction of Section 18A for rectifying shipping bill entries, the elimination of export duty on crust leather, and the Bharat Trade Net platform, will simplify compliance and enhance trade efficiency. Additionally, the reduction of costs through duty-free inputs, the expansion of export benefits for handicrafts, and improved warehousing for air cargo will further strengthen India's global competitiveness.

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