GST on Import of Goods — How IGST Works

There is no separate "import GST rate". IGST on an import mirrors the domestic GST slab for that product, based on its HSN code. Under GST 2.0 the common slabs are 5% (merit/mass-use goods), 18% (standard — most machinery, electronics, raw materials) and 40% (large cars/SUVs and sin/luxury goods). Some notified items such as life-saving medicines are nil-rated.

The mechanism did not change — IGST still equals the domestic rate for the goods. But because GST 2.0 (effective 22 September 2025) collapsed the old four slabs into two (5% and 18%) plus a 40% demerit rate and removed most 12% and 28% items, the actual IGST on many imports moved: for example most electronics and appliances shifted 28%→18%, and many mass-use textiles/footwear 12%→5%. Always check the current HSN rate.

IGST is the Integrated GST levied on inter-state supplies and on imports, which are treated as inter-state supplies into India. Charging IGST at the port puts imported goods on the same tax footing as domestically produced goods and feeds the same input-tax-credit chain, so a registered importer is not disadvantaged versus a domestic buyer.

IGST is charged on the assessable value plus Basic Customs Duty plus Social Welfare Surcharge — not on the CIF value alone. Example: CIF ₹1,00,000 + 1% landing = ₹1,01,000 assessable; BCD @ 10% = ₹10,100; SWS @ 10% of BCD = ₹1,010; IGST base = ₹1,12,110; IGST @ 18% = ₹20,180. Total duty at the port = ₹31,290, of which ₹20,180 IGST is creditable as ITC.

After adding customs duty. The IGST base is the assessable value (CIF plus notional landing charges) plus Basic Customs Duty and the Social Welfare Surcharge. Because IGST sits on top of BCD, the duties compound — this is why the effective tax on an import is higher than simply applying the IGST rate to the invoice value.

Basic Customs Duty (and the Social Welfare Surcharge) is a Customs Act levy that is not creditable — it is a permanent cost added to the landed price. IGST is a GST Act levy that a registered importer recovers in full as Input Tax Credit. So BCD is a cost, IGST is a pass-through. BCD rates vary widely by product (0% to 100%+); IGST follows the standard GST slab for the goods.

Yes. IGST paid at customs is fully available as Input Tax Credit to a GST-registered importer. It flows from the ICEGATE portal into GSTR-2B against the Bill of Entry and can be set off against CGST, SGST or IGST on outward supplies. Conditions: goods imported in the importer's GSTIN, a valid Bill of Entry, goods used for taxable or zero-rated supply, and the credit not blocked under Section 17(5).

Yes. Unlike some other regimes, IGST paid on imported capital goods (machinery, plant, equipment) is available as Input Tax Credit in full in the month of import — it is not spread over multiple years. The goods must be used for taxable or zero-rated business supply and the credit must not be otherwise blocked under Section 17(5).

It appears in your GSTR-2B, auto-populated from the ICEGATE customs system against your Bill of Entry. Reconcile the Bill of Entry details on ICEGATE with GSTR-2B before claiming; if an entry is missing you can trigger a query on the ICEGATE portal so it flows through correctly.

Import of services is taxable under the Reverse Charge Mechanism (RCM). When an Indian registered person receives a service from a foreign supplier, the recipient pays IGST at the rate that would apply domestically — commonly 18% — on the invoice value, self-assessed in GSTR-3B. The recipient can then claim that IGST as ITC subject to conditions. Personal imports of services by individuals (e.g. an OTT subscription) are generally outside RCM.

The Indian recipient. Under reverse charge the foreign supplier does not register or charge Indian GST; instead the registered Indian recipient self-pays IGST on the imported service in GSTR-3B and, where eligible, claims it back as ITC. This applies to services such as foreign consultancy, software, cloud, licensing and professional fees used in business.

Yes. An SEZ is a deemed foreign territory, so goods imported into an SEZ unit are exempt from IGST (and often Basic Customs Duty). Export Oriented Units and importers under Advance Authorisation or EPCG can bring in inputs and capital goods for export production without IGST, subject to an export obligation. Verify the exact notification/scheme for your product before clearance.

Exports are zero-rated, so exporters recover input GST in one of two ways: export under a Letter of Undertaking (LUT) without paying IGST and claim a refund of accumulated input ITC, or export on payment of IGST and claim a refund of the IGST paid. Both routes are processed through ICEGATE and the GST portal within defined timelines.

You can import without GST registration, but then IGST paid at customs becomes an unrecoverable cost like BCD. To claim ITC on import IGST you must be GST-registered, and the goods must be imported under your GSTIN with a valid Bill of Entry. Businesses importing for resale or manufacture should register to keep IGST a pass-through rather than a cost.

Yes. IGST is a single central levy applied uniformly at the port of import regardless of the destination state, so the import IGST rate for a given product is the same nationwide. The state element is settled later through the IGST settlement mechanism; the importer simply pays IGST at customs and claims it as ITC.