On 20 May 2026, the DGFT issued amended IEC validation guidelines effective 15 June 2026. All active IEC holders in engineering and auto components must now re-submit digitally signed declarations and updated factory inspection certificates through the DGFT portal. This marks the first mandatory validation cycle under the new anti-diversion framework introduced to strengthen supply-chain authenticity for PLI-eligible manufacturers and prevent shell-entity misuse.
Market signals
The new DGFT framework requires biometric-linked digital signatures on IEC declarations and real-time GPS-stamped factory photographs. Manual submissions are no longer accepted.
Third-party inspection reports (approved by DGFT-notified agencies only) must confirm active manufacturing within 30 days of submission. Dormant or trading-only units face IEC suspension.
From 15 June, GST portal will flag mismatches between IEC factory location and GST registration. ITC claims on export invoices will be blocked until alignment is corrected.
Engineering and auto-component exporters must treat the 15 June deadline as non-negotiable. Non-compliance triggers automatic IEC suspension, which freezes all export credits and invalidates GST input tax claims on outstanding invoices. The DGFT's anti-diversion stance directly impacts PLI scheme eligibility audits, as customs will cross-verify IEC status during claim verification. Vinayakam Consultants' IEC and GST audit teams help manufacturers pre-validate documentation, resolve GST-IEC mismatches, and prepare digital compliance packs to meet the deadline without export disruption.
Your action checklist
- Obtain fresh factory inspection certificate from DGFT-notified agency (list available on DGFT portal) dated within 30 days of IEC re-submission.
- Generate biometric-linked digital signature certificate (Class 3 or higher) and test upload on DGFT IEC portal before 10 June.
- Cross-check IEC factory address against GST registration GSTIN; file GST amendment if addresses diverge; allow 5–7 days for portal sync.
- Compile and digitally upload the IEC re-validation package (declaration, inspection report, board resolution, ownership proof) on DGFT portal by 14 June 11:59 PM IST.
Frequently asked questions
All active IEC holders in engineering and auto components must re-validate their IEC codes by June 15, 2026, under the new DGFT rules by submitting digitally signed declarations and updated factory inspection certificates.
Non-compliance triggers automatic IEC suspension, which freezes all export credits and invalidates GST input tax claims on outstanding invoices, directly impacting PLI scheme eligibility.
From June 15, 2026, the GST portal will flag mismatches between IEC factory location and GST registration, blocking ITC claims on export invoices until alignment is corrected.