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The exemptions on inputs used in display assemblies and inductor coil modules will remain valid until the aforementioned date, March 31, 2029.
According to notifications issued by the Finance Ministry and the Central Board of Indirect Taxes and Customs (CBIC), the duty exemption applies to key inputs used in manufacturing inductor coil modules for wireless charging in mobile phones, components used in display assemblies for automotive, medical and industrial applications, and lithium-ion cells, an Economic Times report noted The government has also expanded customs duty concessions for machinery used in lithium-ion battery manufacturing by introducing a technology-neutral exemption that covers equipment used at different stages of battery production. “This simplifies the customs framework, removes end-use-based distinctions, and significantly reduces compliance and interpretational challenges for manufacturers.”, according to Mohan. The decision covers components used in wireless charging modules for smartphones, display assemblies for certain electronic applications, lithium-ion cells and machinery used in battery manufacturing, the Reuters report noted. The changes are part of the government’s efforts to support domestic electronics production and expand local manufacturing capacity. He also added that the “Exemption for lithium-ion cell manufacturing may spur investment in domestic battery production for electronics and electric mobility.