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Customs duty payment: A guide to pay customs duty online

Custom duty is the tax imposed by governments on imports and exports. Here is a step-by-step guide on how to pay customs duty online on ICEGATE.

In today's global marketplace, managing customs duty payments is essential for businesses and individuals involved in the import and export of goods. The rise of e-commerce and the expansion of global supply chains have increased the volume and frequency of international shipments, necessitating more streamlined customs processes. Traditional methods of handling customs duties — often characterized by paper-based documentation and in-person payments — pose considerable challenges in terms of time, cost, and error margins.

The ICEGATE portal addresses these complexities and simplifies the customs duty payment process. In this blog post, we will discuss the procedure for making customs duty payments through ICEGATE and the steps for challan creation on the CBIC-GST.

What is ICEGATE e-payment portal?

The Indian Customs Electronic Gateway (ICEGATE) is an online portal of the Central Board of Indirect Taxes and Customs (CBIC) that offers e-filing services to traders for filing bills of entry, shipping bills, etc. The portal also facilitates electronic payment of customs duty, significantly reducing the time and effort traditionally required for this process.¹ Businesses and individuals can use ICEGATE to make their customs duty payments from anywhere at any time. This enhances efficiency, reduces operational delays, and minimizes the risk of errors.

Procedure for challan creation on CBIC-GST portal

Before proceeding to the ICEGATE portal for customs duty payment, one must create a challan on the CBIC-GST Portal. Here is an overview of the steps involved in the process:

1. Login to the CBIC-GST portal:

Start by accessing the Central Board of Indirect Taxes and Customs GST portal. Use your existing user credentials to access the portal.

2. Navigate to ‘services’:

Within the portal, find and click on the 'Services' menu.

3. Select ‘e-payment’:

From the options available, choose 'E-payment' and then click on 'Create Challan'. You also have the option to 'Track Challan Status' if you wish to monitor the status or validity of your challan.

4. Enter details for challan creation:

A new screen will appear, prompting you to select either 'Service Tax (ST) Registration Number' or 'Central Excise (CE) Registration Number'. After making your selection, enter the CAPTCHA code and click 'Submit'.

5. Verify payer details:

Your details, including name, email address, CE/ST registration number, mobile number, and address along with chief departmental representative (CDR) details, will be displayed. Review these details for accuracy.

6. Select tax account heads:

Use the drop-down menu to choose the tax account heads relevant to your payment (up to six account heads can be selected).

7. Enter amount and proceed:

Input the respective amount for each selected tax account head. The total will be auto calculated on this screen. Once done, click on the 'Next' button.

8. Review the consolidated amount:

The next screen will display the total amount in words for all the duty heads combined. Review this information for accuracy.

9. Edit details if necessary:

If you need to make any changes, select 'Edit' to go back to the previous screen for corrections.

10. Generate challan:

Once all details are validated and you're ready to proceed, click on the 'Generate Challan' button. This will process the details and display the Challan Temporary Identification Number (CTIN).

11. Challan validity:

Note that the generated challan will be valid for 15 days, and a confirmation message stating ‘Challan created successfully’ will appear on the screen.

12. Proceed to payment:

A 'Make Payment' button will become available. Clicking this button will redirect you to the ICEGATE Portal for payment completion.²

Step-by-step guide to make customs duty payment on ICEGATE portal

After you have created a challan on the CBIC-GST portal, you can make the customs duty payment on the ICEGATE portal. Here is an overview of the process:

1. Log in to ICEGATE:

Access the ICEGATE e-payment portal using your user ID and password. If you're a new user, you'll need to register first.

2. Navigate to financial services:

Once logged in, click on the 'Financial Services' tab and select 'e-Payment'.

3. Fill in payment details:

Choose the required Duty Type, Document Type, and Location. Then enter your Identification Number along with your ICEGATE user ID and password again if prompted.

4. Verification:

Enter the CAPTCHA displayed on the screen and click 'Verify & Proceed' to move forward.

5. Choose challan:

From the displayed list of unpaid challans, select the one you wish to pay.

6. Select payment method:

Choose the desired payment method and proceed by clicking 'Make Payment'.

7. Confirm challan details:

Review the challan details and proceed with the payment.³

Conclusion

The integration of technology in customs processes through platforms like ICEGATE has simplified the customs duty payments process. Traders can now use an accessible and effective platform that streamlines compliance, increases transparency, and guarantees secure and prompt customs processes.

This has particularly benefited e-commerce exporters, who can now complete these procedures from anywhere in India without having to navigate complex paperwork or travel long distances to submit these in person. For additional support with compliance documentation, payments, or other aspects of e-commerce exports, exporters can leverage the tools and services offered by e-commerce export programs like Amazon Global Selling.

Amazon Global Selling: Easy e-commerce exports and hassle-free shipping

If you are a business owner and you want to sell your products to the world, Amazon Global Selling enables you to list and sell ‘Made in India’ products on 18 Amazon global marketplaces. As an e-commerce exports program, Amazon Global Selling provides support and guidance at every step of your export journey, connecting you to Amazon’s Service Provider Network for tailored compliance, payments, and logistics support.

Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for Fulfillment by Amazon (FBA) and outsource order fulfillment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.

Frequently Asked Questions

What is the CBIC GST portal?

The CBIC GST Portal is a digital platform developed by the Central Board of Indirect Taxes and Customs (CBIC) in India, designed to facilitate the administration of the Goods and Services Tax (GST) for taxpayers and businesses across the country.⁴It serves as a one-stop destination for filing GST returns, making tax payments, applying for refunds, and managing various GST-related services and compliances. The portal offers tools and resources for efficient tax administration, aiming to simplify the process of GST compliance through digital means, thereby enhancing transparency, ease of doing business, and ensuring seamless tax administration and compliance.

Published on June 11, 2024.

Sources:

1. https://www.icegate.gov.in/about-us/what icegate#:~:text=Indian%20Customs%20Electronic%20Data%20Interchange,and%20other%20Trading%20Partners%20electronically.
2. https://cleartax.in/s/icegate-e-payment-portal
3. https://cbic-gst.gov.in/pdf/Advisory-01072019-CE-ST-Tax-Payers-NEFT-RTGS-Payment-process.pdf
4. https://www.cbic.gov.in/

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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.

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