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Published on: Jun 24, 2026

Igst On Imports - Calculation Methodology

The formalities for import and export would change once GST is implemented in India on 1st July 2017. Under GST, certain types of duties and taxes like Basic Customs duty, Education Cess, Anti-dumping duty, Safeguard duty and the like would continue. On the other hand, Countervailing Duty (CVD) and Special Additional Duty of Customs (SAD), would be replaced by Integrated Goods and Services Tax(IGST). In this article, we look at the levy of IGST on imports along with the procedure for calculation of Igst On Imports into India.

Duties Levied on Imports under GST

From 1st July 2017, the duties and tax levied on imports into India would change significantly. Before implementation of GST, the following types of duties and taxes are levied on imports into India based on the HSN code of the item.

  • Basic Customs Duty
  • Countervailing Duty (CVD)
  • Special Additional Duty of Customs (SAD)
  • Education Cess
  • Anti-dumping duty
  • Safeguard duty

Once GST is implemented, the following duties and taxes would be applicable for a majority of the products :

Cutoff Date for GST Implementation Purposes

According to a notification issued by the Central Board of Excise and Customs, IGST and GST Compensation Cess would be levied on all cargo that arrives into India on or after 1st July 2017. Further, IGST and GST Compensation Cess would be applicable on all goods that arrived into India after 30th June 2017 for which Bill of Entry is filed on or after 1st July 2017. In case of goods arriving into India after 1st July 2017 for which advance bill of entry was filed, the bill of entry can be recalled, and the Customs Officer could reassess for levy of IGST and GST Compensation Cess.

Calculating GST on Imports

GST is applicable on all imports into India in the form of levy of IGST. It is levied on the value of imported goods + any customs duty chargeable on the goods. Hence, IGST must be calculated after adding the applicable customs duty to the value of imported goods. 1.

"<yoastmark If for any imported articles, in addition to basic customs duty, other duty of customs is chargeable, then it must be included along with the basic customs duty to arrive at the value on which GST cess or IGST is calculated. To arrive at the rate for levying IGST or GST Compensation Cess, the methodology shall include education cess, higher education cess, as well as anti-dumping and safeguard duties. Further, it shall also include, anti-dumping and safeguard duties must be added along with basic customs duty.

Input Tax Credit for Imports under GST

Under GST, the

input tax credit would be provided for IGST paid, and GST Compensation Cess paid. However, the input tax credit is not applicable for basics customs duty paid during imports. To avail input tax credit, the importer would have to obtain GST registration and quote the GSTIN on Bill of Entry. During the transitional period, provisional GSTIN can also be quoted instead of GSTIN.

Know more about GST at the IndiaFilings GST Portal

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Frequently Asked Questions

Common questions about IGST Calculation for Imports in India Effective July 2017.

Under GST, the major duties and taxes levied on imports into India are Basic Customs Duty, Integrated Goods and Services Tax (IGST), GST Compensation Cess, Education Cess, Anti-dumping duty, and Safeguard duty.
IGST on imports is calculated by adding the applicable Basic Customs Duty to the value of imported goods, and then applying the IGST rate on that sum. Any other duty of customs like Anti-dumping duty or Safeguard duty must also be included in this calculation.
According to the notification issued by the Central Board of Excise and Customs, IGST and GST Compensation Cess will be levied on all cargo that arrives into India on or after 1st July 2017, as well as on goods that arrived into India after 30th June 2017 for which the Bill of Entry is filed on or after 1st July 2017.
Yes, input tax credit can be claimed for IGST paid on imports under GST. However, input tax credit is not available for Basic Customs Duty paid during imports.
To avail input tax credit on imports under GST, the importer must obtain GST registration and quote the GSTIN on the Bill of Entry. During the transitional period, a provisional GSTIN can also be quoted instead of GSTIN.
The rate for levying IGST or GST Compensation Cess on imports is determined by including Education Cess, Higher Education Cess, as well as Anti-dumping and Safeguard duties along with Basic Customs Duty.
In case of goods arriving into India after 1st July 2017 for which an advance bill of entry was filed, the bill of entry can be recalled, and the Customs Officer can reassess for the levy of IGST and GST Compensation Cess.
No, GST does not replace all duties and taxes on imports. Basic Customs Duty, Education Cess, Anti-dumping duty, and Safeguard duty will continue to be levied on imports even after GST implementation.
Under GST, the Countervailing Duty (CVD) and Special Additional Duty of Customs (SAD) are replaced by the Integrated Goods and Services Tax (IGST) on imports.
No, GST Compensation Cess may not be applicable on all imports. It will be levied only on certain categories of imported goods, as specified by the government.