How to calculate import duty in India
Importing stock to sell online? Here's exactly how customs duty is built up, with a free calculator that does the maths for you.
Import duty in India isn't a single number — it's a stack of charges applied in a set order on the value of your goods. If you import inventory to sell on Amazon, Flipkart or your own store, you need to know the landed cost before you commit. Our Import Duty Calculator works it out instantly; this guide explains what's under the hood.
The components of import duty
- Assessable Value (AV): CIF value — cost + insurance + freight.
- Basic Customs Duty (BCD): a percentage of AV, set by the product's HSN code.
- Social Welfare Surcharge (SWS): usually 10% of BCD.
- IGST: charged on (AV + BCD + SWS), at the product's GST rate.
- Compensation Cess: on specific goods only.
The calculation order (worked example)
Say you import goods with an assessable value of ₹1,00,000, BCD of 10%, and an IGST rate of 18%.
| Step | Component | Amount (₹) |
|---|---|---|
| 1 | Assessable Value | 1,00,000 |
| 2 | BCD @ 10% | 10,000 |
| 3 | SWS @ 10% of BCD | 1,000 |
| 4 | IGST @ 18% of (1+2+3) | 19,980 |
| 5 | Total duty (2+3+4) | 30,980 |
| 6 | Landed cost (1+5) | 1,30,980 |
The good news: IGST is creditable
The IGST you pay at import is available as input tax credit if you're GST-registered. BCD and SWS are not creditable — they're a real cost. So your effective duty burden is mostly BCD + SWS, with IGST flowing through as ITC.
Find your rates first
BCD and IGST both depend on the HSN code. Look it up with the HSN Code Finder, then drop the values into the Import Duty Calculator for an instant landed-cost estimate.
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What is assessable value for customs?
It's the CIF value — the cost of goods plus insurance and freight to the Indian port. Duty is calculated on this value.
Is import IGST refundable?
It's not refunded, but GST-registered importers can claim it as input tax credit against their output GST.
Which import charges are not creditable?
Basic Customs Duty and the Social Welfare Surcharge are costs you cannot claim as ITC. Only IGST and cess (where applicable) are creditable.
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