Stone Export from India: Taxes, Duties & Export Regulations

India is one of the largest suppliers of granite, sandstone, marble, limestone, and slate to the world. Many natural stone exporters from India ship containers daily to the USA, Europe, Middle East, and Australia.

But before a single container leaves the port, exporters must follow certain tax rules, duty structures, and export regulations.

Let’s understand everything step by step.

Is There Export Duty on Natural Stone?

Good news first.

In most cases, finished stone products like:

• Granite slabs

• Marble tiles

• Natural stone flooring

• Thin stone veneer from India

• Processed limestone

do not attract export duty.

The Indian government encourages exports, so many value-added stone products are exported without export tax.

However, raw blocks in some categories may have restrictions or duties depending on policy updates. That is why exporters must always check the latest government notifications.

GST in Stone Export from India

GST (Goods and Services Tax) applies to domestic sales in India. But exports are treated differently.

Exports are considered zero-rated supplies under GST.

That means:

• No GST is charged to international buyers.

• Exporters can claim refund of input GST paid on raw materials and services.

There are two main options for exporters:

1. Export Under LUT (Letter of Undertaking)

Exporter:

• Does not charge GST on export invoice.

• Files LUT online.

• Claims input tax refund later.

This is the most common method used by natural stone exporters from India.

2. Export with Payment of GST

Exporter:

• Pays GST at the time of export.

• Later claims refund from the government.

Most exporters prefer LUT to avoid blocking working capital.

Required Export Registrations

Before starting stone export from India, certain registrations are mandatory.

1. IEC (Import Export Code)

Issued by DGFT (Directorate General of Foreign Trade).

Without IEC, you cannot export goods legally.

2. GST Registration

Required to operate as a registered exporter and claim refunds.

3. RCMC (Registration Cum Membership Certificate)

Issued by export promotion councils.

For stone exporters, membership with relevant export council may be required depending on product category.

HS Code Classification for Stone Products

Every exported product must have a correct HS Code (Harmonized System Code).

For example:

• Granite slabs

• Limestone tiles

• Thin stone veneer from India

• Marble blocks

Each has a specific HS classification.

Wrong HS code can lead to:

• Customs delays

• Penalty

• Incorrect duty calculation at destination

Professional limestone exporters from India carefully verify HS codes before shipping.

Customs Clearance Process in India

Once goods are ready and container is loaded, customs clearance begins.

Basic steps include:

1. Filing Shipping Bill online.

2. Submitting export invoice and packing list.

3. Providing certificate of origin.

4. Completing customs examination (if required).

5. Receiving Let Export Order (LEO).

Only after LEO is issued can the container be loaded onto the vessel.

Certificate of Origin (COO)

This certificate proves that goods are manufactured in India.

Some countries require COO for:

• Duty benefits

• Trade agreements

• Import clearance

It is usually issued by:

• Chamber of Commerce

• Authorized export bodies

Without this document, the buyer may face difficulty clearing goods.

Export Incentives for Stone Exporters

The Indian government provides certain export incentives under various schemes.

These may include:

• Ro DTEP (Remission of Duties and Taxes on Exported Products)

• Duty drawback benefits (in some cases)

These schemes help natural stone exporters from India improve competitiveness in global markets.

However, incentive rates change periodically. Exporters must check current notifications before claiming benefits.

Duties in Importing Country

While India may not charge export duty on finished stone, importing countries may apply:

• Import duty

• VAT or sales tax

• Anti-dumping duty (if applicable)

For example:

• USA may apply specific tariff rates.

• European countries apply VAT.

• Middle East may apply customs duty.

Exporters must clearly mention whether shipment is:

• FOB (buyer pays freight and import duty)

• CIF (exporter pays freight but buyer pays import duty)

• DDP (exporter pays everything including duty)

Clear agreement avoids confusion.

Compliance for Environmental Regulations

Stone quarrying and processing are regulated industries.

Exporters must ensure:

• Legal quarry sourcing

• Environmental compliance

• Proper mining permits

International buyers increasingly ask for sustainable sourcing documents.

Especially in Europe, compliance with environmental norms is becoming important.

Quality Inspection & Testing

Some countries require:

• Quality inspection certificate

• Phytosanitary certificate (for wooden packaging)

• Fumigation certificate

For example: Thin stone veneer from India packed in wooden crates must follow ISPM-15 standards.

Without heat-treated wooden pallets, customs may reject the shipment.

Banking & Payment Regulations

Export payments must follow RBI (Reserve Bank of India) guidelines.

Common payment methods include:

• Advance payment

• Letter of Credit (LC)

• DP (Documents against Payment)

Export proceeds must be realized within the time frame allowed by RBI.

Banks monitor export transactions carefully.

Common Regulatory Mistakes to Avoid

Even experienced exporters can make errors.

Common mistakes include:

• Wrong HS code

• Incorrect invoice value

• Missing certificate

• Misdeclaration of weight

• Ignoring updated export policy

These mistakes can result in:

• Shipment delay

• Financial penalty

• Customs hold

Professional limestone exporters from India usually work with experienced Custom House Agents (CHA) to avoid such risks.

Why Proper Compliance Builds Trust

International buyers prefer suppliers who:

• Follow legal export rules

• Provide correct documentation

• Maintain tax compliance

• Offer transparent pricing

In global trade, trust is everything.

Natural stone flooring projects involve large investments. Buyers do not want regulatory problems at their port.

That is why experienced natural stone exporters from India focus strongly on documentation and compliance.

Final Thoughts

Taxes, duties, and export regulations may sound complicated. But once the system is understood, the process becomes structured and manageable.

For successful stone export from India, exporters must:

• Obtain proper registrations

• Use correct HS codes

• Follow GST rules

• Maintain clean documentation

• Understand import country duties

• Follow environmental and packaging norms

Whether you are exporting granite slabs, marble tiles, limestone blocks, or thin stone veneer from India, regulatory compliance protects your business.

Production creates value.

Shipping delivers value.

But compliance protects the entire transaction.

And in international trade, protection of trust and reputation is what builds long-term success.