Calculating the import duties on goods you plan to sell in India can be overwhelming.
Use this simple guide to navigate the process.
Customs duty calculator - India
Calculate your import taxes for goods
sold in India
What is customs duty?
Customs duty is a tax imposed by governments on goods being imported into a country. Customs duty can also be called import duty, or import tax.
Governments assess customs duty on all incoming goods, and typically have different ways of charging duty based on the type of product and where it’s coming from. This can lead to fairly complex systems of customs duty, which vary from one country to another.
Customs duty is applied to increase government revenue, manage the flow of goods into the country, and – at times – to stop local industry being damaged by competition from international suppliers.
Types of custom duty
All goods imported into India are assessed for import taxes and tariffs. Different custom duties may apply to different types of products. Here are some of the duties, tariffs and surcharges you may need to pay:
- Basic Customs Duty (BCD)
- Social Welfare Surcharge (SWS)
- Integrated Goods and Services Tax (IGST)
- GST Compensation Cess
- Anti-Dumping Duty
- Safeguard Duty
- Customs Handling Fee
Not all of these taxes apply to all imports. The exact fees you have to pay will depend on what you’re importing, and where it is coming from.
Selected product categories are exempted from some fees – and Free Trade Agreements can also mean custom taxes are waived or reduced, depending on where you’re importing from.
Understanding Indian customs duty
While there are a number of different potential import taxes to pay when bringing goods into India, some are more commonly applied than others.
Here’s what you need to know about the key customs costs when importing to India:
1. What is Basic Customs Duty (BCD)?
Basic Customs Duty is set according to
the type of item you’re importing. Usually this tax is applied
based on the assessable value of the import - although for some
types of product there’s a specific duty set per unit. BCD is
reviewed from time to time, and currently runs from 5% to 40%
for most products.
2. What is Integrated Goods and Services Tax (IGST)?
Goods and Services Tax (GST) is levied on
goods being imported into India, or moved between states. IGST
is the form of GST which applies to imports, and is collected by
the central government. There are different IGST slabs which are
set at 0%, 5%, 12%, 18% and 28%.
3. What is Social Welfare Surcharge (SWS)?
The Social Welfare Surcharge is set at
10% of the value of goods being imported into India. The SWS
replaces the earlier Education Cess. Some imports are exempted
from this fee.
How to calculate import tax?
To calculate import tax you’ll need to know the product code under the Harmonized System of Nomenclature (HSN code). This code will help you find out the IGST rate which applies to your goods.
You’ll also need to look up which other taxes apply to your import, based on the type of product and where you’re importing from. You’ll find lots of information over on the online portal of the Indian Central Board of Excise and Customs (ICEGATE) as well as full details of how to pay the duties you owe.
To give a picture, check out our example of how to calculate the import duty on an item valued at INR100.
Working out the import taxes you need to pay can be complex. Save yourself time, and get an answer more quickly, using our import duty calculator. Simply fill in the fields following the online prompts to get the Indian customs duty information you.
| Category |
Type of duty |
Rate |
Price (Rs.) |
Calculation |
|
A |
Price of an article |
250 free, $0.30 after that |
100Rs. |
|
|
B |
Basic Duty of Customs |
30% | 30Rs. | |
|
C |
Social Welfare Surcharge |
10% | 3Rs. | B*10/100 |
|
D |
Anti-dumping duty |
0% | 0Rs. | A*0/100 |
|
E |
IGST |
18% |
23,94Rs. |
(A+B+C+D)*18/100 |
|
F |
Compensation CEss |
0% |
0Rs. |
(A+B+C+D+E)*0/100 |
|
G |
Total applicable duty |
0% |
56,95Rs. |
Total value from B to F |
|
H |
Total value |
|
156,94Rs. |
A+G |
Custom duty payment online
How to pay customs duty in India?
You can file and pay your Indian custom duty online through the portal of the Indian Central Board of Excise and Customs (ICEGATE). Here are the steps you’ll need to take:
- Log into ICEGATE and select e-payment
- Check all of the e-challans which are awaiting payment and select the one you want to pay
- Choose how you want to pay, following the online prompts
- You’ll be redirected according to your chosen payment method and can make the online transfer required
- After the payment is completed, you’ll be returned to the ICEGATE page where you can print your confirmation for your records
Sending or receiving international payments?
Import duty FAQs:
1. Do I need to pay custom duty on gifts to India?
Gifts being sent by mail, up to the value
of INR5,000 are usually exempt from customs duty. However,
you’ll need to check there are no restrictions or requirements
for the specific product type before you send your gift.
2. What is custom duty exemption?
The government can choose to make some
goods exempt from paying custom duty. This may apply for certain
essential goods which need to be imported into the country, or
for items being brought in under a Free Trade Agreement for
example.
3. Where can I pay custom duty in India?
The easiest way to settle your bill is to
pay your customs duty online using the ICEGATE portal.
4. Is custom duty included in GST?
GST is one form of custom duty - but it
is not the only one. You’ll also need to understand and pay
other common custom taxes such as Basic Customs Duty and the
Social Welfare Charge.