Calculating the import duties on goods you plan to sell in India can be overwhelming.
Use this simple guide to navigate the process.
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 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.
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:
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.
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:
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 |
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: