In a major policy boost for India’s cross-border e-commerce and micro, small and medium enterprises (MSMEs), the government on Friday extended export benefits to goods shipped through the postal mode.
The decision, effective from January 15, allows exporters to claim incentives under the duty drawback, remission of duties and taxes on exported products (RoDTEP), and rebate of state and central taxes and levies (RoSCTL) schemes for postal exports made in electronic form.
Levelling the Playing Field
The government described the move as a “landmark measure” aimed at creating a level playing field for exporters using the postal channel. It is expected to significantly enhance the competitiveness of MSME exporters, particularly those in smaller towns and remote areas while giving a substantial push to postal exports and the overall growth of India’s digital export ecosystem.
Saurabh Agarwal, tax partner, EY India, noted that extending RoDTEP and RoSCTL to the postal route removes a long-standing compliance barrier for MSMEs in remote clusters. “It’s strategic realignment of our trade infrastructure to mirror the global e-commerce shift. In an era of heightened global volatility, providing a seamless, digital-first refund mechanism empowers our ‘last-mile’ exporters to remain price-competitive and ensure that our exports remain competitive in the global market,” Agarwal said.
To implement these benefits, the Central Board of Indirect Taxes (CBIC) has amended the Postal Export (Electronic Declaration and Processing) Regulations, 2022, enabling exporters to claim duty drawback, RoDTEP and RoSCTL benefits for goods exported through the postal route.
Digital Integration
The initiative aligns with the government’s broader efforts to strengthen India’s e-commerce export framework. Over the years, the government has undertaken several reforms, including a dedicated chapter on “Promoting Cross-Border Trade in the Digital Economy” in the Foreign Trade Policy 2023. This provides a comprehensive structure for facilitating exports through courier, post, e-commerce export hubs, and Dak Niryat Kendras (DNKs).
India currently operates 28 Foreign Post Offices (FPOs). CBIC, in a statement, said that the Postal Export (Electronic Declaration and Processing) Regulations, 2022, enabled end-to-end electronic processing of export declarations for postal exports. Automation of IGST refunds for postal exports was implemented in September 2024, the statement reads.
To further promote e-commerce exports, CBIC, in collaboration with the Department of Posts, launched the ‘Hub and Spoke’ model in December 2022, and set up over 1,000 DNKs across the country to facilitate booking, aggregation and processing of export parcels, particularly benefiting MSMEs and small exporters.