GST on Imported Goods India — IGST & Customs Duty
Updated: 3 June 2026 | Customs Act & GST Act 2017 | IGST on Imports
Imported goods attract IGST = GST rate × (CIF value + BCD + other customs levies). GST-registered importers can claim 100% ITC of IGST paid. Basic Customs Duty (BCD) is NOT creditable. Imported services taxed at 18% IGST under Reverse Charge (paid by Indian recipient).
ITC ✓
IGST paid on imports = fully creditable as ITC for GST-registered businesses.
Use IGST credit to pay output GST. Only IGST is creditable — BCD/SWS cannot be claimed as ITC.
Use IGST credit to pay output GST. Only IGST is creditable — BCD/SWS cannot be claimed as ITC.
Import Tax Calculation — Step by Step
| Component | Basis | Example (₹1L CIF, BCD 10%) |
|---|---|---|
| CIF Value (Assessable) | Cost + Insurance + Freight | ₹1,00,000 |
| Basic Customs Duty (BCD) | Rate × CIF | 10% × ₹1L = ₹10,000 |
| Social Welfare Surcharge | 10% × BCD | 10% × ₹10K = ₹1,000 |
| IGST Base | CIF + BCD + SWS | ₹1,11,000 |
| IGST (if 18%) | 18% × IGST base | 18% × ₹1,11,000 = ₹19,980 |
| Total Duty | BCD + SWS + IGST | ₹10,000 + ₹1,000 + ₹19,980 = ₹30,980 |
| Total landed cost | CIF + Total duty | ₹1,30,980 |
IGST Rates on Common Imported Goods
| Product Category | BCD | IGST Rate | Can Claim ITC? |
|---|---|---|---|
| Capital machinery (industrial) | 5-7.5% | 18% | Yes (if business use) |
| Raw materials | 0-10% | 5-18% | Yes |
| Electronic components | 0-10% | 18% | Yes |
| Mobile phones | 20% | 12% | Yes (if stock) |
| Laptops/computers | 0% | 18% | Yes |
| Gold | 15% | 3% | No (exempt supply) |
| Crude oil | Varies | 0% (outside GST) | No |
| Medicines | 0% | 0-12% | Yes |
GST on Imported Services — Reverse Charge
| Service Type | IGST Rate | Who Pays? | ITC Available? |
|---|---|---|---|
| Cloud services (AWS, Azure, Google) | 18% | Indian recipient (RCM) | Yes |
| Software licenses (Microsoft, Adobe) | 18% | Indian recipient (RCM) | Yes |
| Foreign consulting / management fees | 18% | Indian recipient (RCM) | Yes |
| Royalties to foreign entities | 18% | Indian recipient (RCM) | Yes |
| Online advertising (Google, Meta) | 18% | Indian advertiser (RCM) | Yes |
Frequently Asked Questions
What is IGST on imported goods and how is it calculated?
When goods are imported into India, IGST (Integrated GST) is levied in addition to Basic Customs Duty (BCD) and other levies. IGST on imports = IGST rate × (Assessable Value + BCD + Customs Education Cess + any other duty). The assessable value is CIF (Cost + Insurance + Freight). Total tax on imports: BCD (0-100% depending on HS code) + Social Welfare Surcharge (10% of BCD) + IGST (5/12/18/28%). Importers registered for GST can claim IGST paid as Input Tax Credit (ITC).
Can I claim ITC on IGST paid on imports?
Yes. If you are a GST-registered importer, you can claim 100% ITC of IGST paid at customs. The IGST paid on imports is credited to your Electronic Credit Ledger and can be used to: Pay output GST on domestic sales; Pay CGST or SGST on domestic supply. ITC on imports is available in GSTR-2B from the customs portal data. You cannot claim ITC of BCD (Basic Customs Duty) — only IGST is creditable. Condition: Goods must be used for business purposes (not personal); proper bill of entry must exist.
What taxes apply when importing goods for personal use (not business)?
For personal imports (unregistered individuals): Basic Customs Duty: varies by product (0-100%). IGST: 5/12/18/28% depending on product. Social Welfare Surcharge: 10% of BCD. Health Cess: 5% on medical devices (if applicable). Effective tax calculation: If you buy a laptop from abroad (HS code 8471): BCD 0%, SWS 0%, IGST 18% on CIF value — so ₹1 lakh laptop: IGST = ₹18,000. For personal imports < ₹10,000 CIF: generally exempt. Above ₹10K: full duty applicable. Cannot claim ITC as unregistered.
What is the GST rate on imported services (reverse charge)?
Imported services are taxed under Reverse Charge Mechanism (RCM) — the Indian recipient pays GST. GST on imported services = 18% IGST (for most services). RCM applies when: a GST-registered Indian person imports any service from a foreign supplier (e.g., cloud services, software licenses, consulting from foreign firms). The Indian importer self-reports and pays 18% IGST via RCM. If registered, can claim the RCM-paid IGST as ITC immediately. Unregistered person importing services: must register and pay GST if aggregate value > ₹20L (₹10L for special category states) — or even for single import above threshold.
Do online purchases from Amazon US, eBay etc. attract GST in India?
Yes. Online purchases from foreign e-commerce (Amazon.com, eBay, AliExpress) attract customs duty + IGST when imported. For gifts received from abroad: up to ₹5,000 CIF — duty-free; above ₹5,000 — regular duty applies. For personal purchases: CIF > ₹10,000 — BCD + IGST applies. Customs clearance: Air cargo/courier: declared at airport customs; postal imports via India Post: cleared by customs. Practical reality: Many small parcels below ₹10K CIF arrive without duty. But the formal rule is: all imports are dutiable — the ₹10K is an informal de minimis practice, not a legal exemption.
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