How to calculate IGST under imports?


Method of calculation of IGST under imports


How to calculate duty after GST implementation?

How to calculate IGST under importsIGST rate: IGST rates have been notified through notification 01/2017-Integrated Tax (Rate), dated 28-06-2017. IGST rate on any product can be ascertained by selecting the correct Sl. No. as per description of goods and tariff headings in the relevant schedules of the notification. Importers are advised to familiarize themselves with IGST and GST compensation cess rates, schedule and exemptions which are available on CBEC website. The Customs duty calculator would be made available on CBEC and ICEGATE website. There are seven rates prescribed for IGST- Nil, 0.25%, 3% 5%, 12%, 18% and 28%. The actual rate applicable to an item would depend on its classification and would be specified in Schedules notified under section 5 of the IGST Act, 2017. The rates applicable to goods of Chapter 98 are as under:


9801- Project Imports- 18%


9802- Laboratory Chemicals- 18%


9803- Passenger baggage – Nil Rate


9804- Specified Drugs and medicines for personal use- 5%


9804- Other drugs and medicines for personal use- 12%


9804- All other dutiable goods for personal use- 28%


Likewise, different rates of tax have been notified for goods attracting Compensation Cess which is leviable on 55 item descriptions (of supply). These rates are mostly ad valorem. But some also attract either specific rates (e.g. coal) or mixed rates (ad valorem + specific) as for cigarettes. The coverage of the goods under GST compensation cess is available on CBEC website along with their HSN codes and applicable cess rates. The IGST Rates of Goods, Chapter wise IGST rate, GST Compensation Cess rates, IGST Exemption/Concession are available on CBEC website for trade and departmental officers as well.


Valuation and method of calculation: IGST is liveable on the value of imported goods and for calculating integrated tax on any imported article, the value of such imported goods would be the aggregate of -

(i) the value of imported article determined under sub-section (1) of section 14 of the Customs Act, 1962 or the tariff value fixed under sub-section (2) of the that section and

(ii) any duty of Customs chargeable on that article under section 12 of the Customs Act, 1962 and any sum chargeable on that article under any law for the time being in force as an addition to, or as duty of Customs but does not include to the tax referred in the sub-section 7 (IGST) and sub-section 9 (Compensation Cess).


The value of the imported article for the purpose of levying GST Compensation cess shall be, assessable value plus Basic Customs Duty levied under the Act, and any sum chargeable on the goods under any law for the time being in force, as an addition to, and in the same manner as, a duty of customs. These would include education cess or higher education cess as well as anti-dumping and safeguard duties. The inclusion of anti-dumping duties and safeguard duty in the value for levy of IGST and Compensation Cess is an important change. These were not hitherto included in the value for the levy of additional duty of customs (CVD) or Special Additional Duty (SAD). The IGST paid shall not be added to the value for the purpose of calculating Compensation Cess.


Although BCD, Education Cesses and IGST would be applicable in majority of cases, however, for some products CVD, SAD or GST Compensation cess may also be applicable. For different scenarios the duty calculation process has been illustrated in Annexure - I of this document

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subramanian: we are machinery importer, shall we take input of GST amount for return filing time

Ashok : If i import ceratin goods Under HSN 8542 what will be basic duty and GST applicable on it. Thanks and regards Ashok

akmal : dear sir how to claim my igst tax sales against zero rated sales by export bcoz i m already tax paid so plz help how to claim my igst and if i not apply in my billing amount igst tax so can i apply bill to other party

Mohan .e .k. : Dear sir, I brought samples of artificial grass from Turki. For that they charged me the duty like 6000/irs. I don't understand this type of duty ..plz ecplane me .. Thanks

Mumtaz Ali: Hi! Dear sir, 1. I have no any registered company, neither TIN number nor IEC code, but have to import some electronic items from China. What should I do? Who and where the custom/GST needs to pay? Kindly guide me... Regards

amit: if we import the goods under duty free scheme from Japan then what IGST % will be applicable?

T.A.MURUGESAN: how to adjust the ITC from Import Machnery

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