Taxes on Imports 2026: BCD, IGST, Social Welfare Surcharge & GST Credit
Imports attract Basic Customs Duty, IGST plus SWS - and you can claim IGST as input tax credit under GST. Understanding the 25/35/50 (IGST) flow and how e-invoicing plus ICEGATE complete the loop.
IEC Registration
Get IEC Registration online. Import Export Code from DGFT portal. Professional fees ₹2,997 by GSTC INDIA GROUP.
GST Registration (Regular)
Get your regular GST registration done online. Professional fees ₹849 + Govt fees. Expert assistance, fast processing, doorstep service by GSTC INDIA GROUP.
The tax stack
- Customs value = CIF (cost, insurance, freight) in rupees
- BCD at the HS-code tariff rate
- SWS at 10% of BCD (where applicable)
- IGST at the GST rate applicable on the category on (CIF + BCD + SWS)
- Result: total duty = BCD + SWS + IGST - claim the IGST in your books
ITC mechanics
- IGST paid via customs appears in GSTR-2B auto-populated
- Only the IGST leg is creditable (BCD and SWS are not refundable credits)
- Claim against output GST in GSTR-3B monthly
- Reconcile the ICEGATE bill of entry with GSTR-2B before filing
- For capital goods/plant imports, the same credit rules apply
Documents and parties
- Bill of entry (customs broker files), invoice, packing list, bill of lading/AWB, insurance certificate
- HS code classification decides BCD - misclassification is the #1 assessment query
- IEC + GSTIN + bank details must match before clearance
- BOE number appears in GSTR-2B only when GSTIN-IEC linking is clean
Pitfalls
- Mis-declared HS code → higher duty in audit
- IGST credit missed because GSTIN wasn't on the shipping documents
- SWS ignored in costing - margins get squeezed
- Late payment interest under the Customs Act on delayed e-payment
- Non-reconciliation of GSTR-2B credit against ICEGATE
What you should do
- Get the HS classification locked by a customs professional before the first shipment
- Register GST + IEC before importing (see the IEC guide)
- Keep import invoices and BOEs in a folder for GST audit
- Check for notification-level exemptions (concessional duty) for your industry
- Track GSTR-2B IGST lines every month - claim the credit consciously
Need help filing this? Our advisors handle it end-to-end
IEC Registration
Get IEC Registration online. Import Export Code from DGFT portal. Professional fees ₹2,997 by GSTC INDIA GROUP.
GST Registration (Regular)
Get your regular GST registration done online. Professional fees ₹849 + Govt fees. Expert assistance, fast processing, doorstep service by GSTC INDIA GROUP.