Import duty calculator in India
Learn how to calculate import duty for goods sold in India with our handy guide on import duty calculation. And get the mid-market exchange rate with no markups, to send and receive cross border payments for less.
How to calculate custom duty?
The import duty calculation you need to do when importing into India depends on the products you’re importing, what they’re made of - and where they’re from. Check the product’s code under the Harmonised System of Nomenclature HSN as tax and IGST are based on HSN codes.
The main import costs are Basic Customs Duty (BCD), Integrated Goods and Services Tax (IGST), and Social Welfare Surcharge (SWS). You’ll pay IGST on all imports into India - there may also be other taxes including Countervailing Duty (CVD) and Anti-Dumping Duties, depending on the situation.
India’s Central Board of Excise and Customs has an online gateway - ICEGATE - offering trade services including e-filing and a customs duty calculator. Check tax rates by HSN here.
Let’s look at an import duty calculation for an article worth 100Rs:
| Category | Type of duty | Rate % | Price (Rs.) | Calculation |
|---|---|---|---|---|
A | Price of an article | 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 | 56,95Rs. | Total value from B to F | |
H | Total value | 156,94Rs. | A+G |
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IGST on import of goods
IGST full form is the Integrated Goods and Services Tax. IGST became law in 2017, and is an aggregate tax pulling in several older tax types. This makes calculations simpler, saving traders time, and improving payment accuracy. Under IGST, taxes must be paid on interstate shipments and imports according to the IGST rate for the specific goods being shipped. IGST is paid to the end-point state for any goods - or services - being imported into India.
How to pay custom duty in India?
You can pay Indian import duty online easily through ICEGATE. Here’s how:
- Go to the ICEGATE e-payment portal
- Log in using your ICEGATE credentials, or enter your import/export code
- Click on the e-payment option
- Check the payments outstanding in your name - these are shown as e-challans, electronic payment demands
- Choose which challan you want to pay, and click to select the payment method
- You’ll be redirected to the bank you select to process payment
- Once you have followed the bank’s online prompts to pay, you’ll be redirected back to ICEGATE
- Print your payment receipt, and save to your records
