CBIC issued clarifications confirming industrial lithium-ion battery energy storage systems (BESS) qualify for 10% concessional BCD, excluding power banks.
Industrial BESS Eligible for Concessional 10% BCD
The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 45/2026-Customs, clarifying the applicability of concessional Basic Customs Duty (BCD) at 10% for stationary, grid-scale, and industrial lithium-ion Battery Energy Storage Systems (BESS). The circular explicitly excludes consumer-grade power banks from this benefit, resolving ambiguity in classification.
The clarification ensures that BESS deployed in utility-scale renewable integration, industrial backup systems, and smart grids are not conflated with portable lithium-ion devices commonly used for mobile charging. Eligibility is contingent upon fulfillment of conditions laid down in Notification 24/2005 and technical verification by Customs officials to confirm industrial use and compliance with Bureau of Indian Standards (BIS).
This circular provides much-needed clarity for importers and developers in the clean energy sector. Legal practitioners must ensure proper documentation and technical specifications are submitted to substantiate industrial use and avoid misclassification. The distinction between BESS and power banks under CTI 8507 aligns with global trade norms and supports India’s energy transition goals.
