The move will boost MSME competitiveness in smaller towns, enhance exports, and leverage the postal network effectively
NEW DELHI
The government has extended export incentives to goods sent through postal shipments to strengthen India’s e-commerce and MSME sectors, officials said on Friday.
The Central Board of Indirect Taxes and Customs announced that export benefits under Duty Drawback, Remission of Duties and Taxes on Exported Products, and Rebate of State and Central Taxes and Levies will now apply to postal exports made electronically from January 15.
The move is expected to improve the competitiveness of micro, small, and medium enterprises, especially those based in smaller towns and remote areas. Officials said it will also give a strong push to exports using the postal network.
According to the Finance Ministry, the decision creates a level playing field for exporters who rely on the postal route and supports the growth of cross-border e-commerce in an inclusive manner.
India currently has 28 Foreign Post Offices notified under the Customs Act, which handle international postal trade. Over the years, the government has taken several steps to simplify postal and courier-based exports.
The Postal Export Electronic Declaration and Processing Regulations introduced in 2022 enabled complete digital processing of export declarations. This was followed by the Postal Import Regulations in 2025 to allow electronic handling of imports.
In September 2024, automated refund of integrated GST for postal exports was also rolled out, reducing delays and paperwork for exporters.
To further support e-commerce exports, the government launched the Hub and Spoke model in partnership with the Department of Posts. Under this system, more than 1,000 Dak Niryat Kendras have been set up across the country.
These centres help MSMEs and small exporters with booking, aggregation, and processing of export parcels.
Officials said the latest decision reflects the government’s continued focus on digital reforms and policy support to help MSMEs access global markets and grow exports through simpler, faster channels.