IGST on imports and input tax credit

One of the most misunderstood parts of importing is IGST. Unlike BCD and SWS, import IGST is fully creditable for GST-registered businesses — turning a scary-looking duty bill into a manageable cash-flow item.

How import IGST arises

At customs, IGST is charged at your product's GST rate on the value after BCD and SWS. Model it with the Import Duty Calculator.

How to claim the credit

1. Ensure you're GST-registered with the importing entity's GSTIN on the Bill of Entry.
2. Pay the IGST at customs and obtain the Bill of Entry.
3. Confirm the import reflects in your GSTR-2B (it flows from ICEGATE).
4. Claim the credit in GSTR-3B against your output tax.

Documents you need

• Bill of Entry showing IGST paid.
• Correct GSTIN recorded on the Bill of Entry.
• Matching entry in GSTR-2B.
• Import invoice and shipping documents.

Common mistakes

• Wrong or missing GSTIN on the Bill of Entry.
• Trying to claim BCD or SWS as ITC (you can't).
• Claiming before the entry appears in GSTR-2B.
• Importing under personal name instead of the GST-registered business.

Plan the whole chain

If you import and sell across states, line up your registrations early — see importing to sell on Amazon India and the Multi-state GST Checker.

Frequently asked questions