How is import duty calculated in India?

Duty is charged on the CIF (Cost + Insurance + Freight) value, called the assessable value. Basic Customs Duty is applied first, then a 10% Social Welfare Surcharge on that duty, then IGST on the running total, and finally any Compensation Cess. The sum of these is the total import duty and tax.

What is the Social Welfare Surcharge?

The Social Welfare Surcharge (SWS) is a 10% levy charged on the Basic Customs Duty amount, not on the goods value. It replaced the older Education and Higher Education cesses and applies to most imports.

How does IGST work on imports?

IGST replaced the old CVD and SAD. It is charged on the duty-inclusive value — CIF plus Basic Customs Duty plus the Social Welfare Surcharge. For GST-registered businesses the IGST paid is available as input tax credit, but it is still a cash outlay at the border.

What is Compensation Cess?

Compensation Cess is an additional levy on demerit and luxury goods such as large cars, tobacco and aerated drinks. It is charged on the same base as IGST. Leave it at zero for ordinary goods that do not attract cess.

Are duty rates the same for every product?

No. Both the Basic Customs Duty and the IGST rate depend on the product's HSN classification, and some goods enjoy concessional or nil rates under trade agreements. Always confirm the exact rates for your HSN code on the official CBIC or ICEGATE tariff.

India Import Duty & Customs Calculator

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The India Import Duty & Customs Calculator estimates the full landed cost of goods imported into India under the post-GST customs regime. Indian import taxation is a chain of compounding levies on the shipment’s CIF value, so the headline duty rate alone understates what you actually pay. This tool walks through each layer — Basic Customs Duty, Social Welfare Surcharge, IGST and optional Compensation Cess — to give the true cost at the border.

How it works

The assessable value is the CIF value (Cost + Insurance + Freight). From there the levies stack:

BCD   = BCD%  × CIF
SWS   = 10%   × BCD
IGST  = IGST% × (CIF + BCD + SWS)
Cess  = Cess% × (CIF + BCD + SWS)

Total duty   = BCD + SWS + IGST + Cess
Landed cost  = CIF + Total duty

Notice that IGST and Cess are charged on the duty-inclusive value, not on the bare CIF — this is why the effective rate the tool reports is higher than the headline BCD. IGST replaced the earlier CVD and SAD components, and the 10% Social Welfare Surcharge replaced the old education cesses.

Worked example

A shipment with a CIF value of ₹1,00,000, a 10% BCD and 18% IGST: BCD is ₹10,000, the SWS is ₹1,000, and IGST is 18% × 1,11,000 = ₹19,980. Total duty and tax is ₹30,980, giving a landed cost of ₹1,30,980 — an effective rate of about 31% on CIF, well above the 10% headline.

Notes

For GST-registered businesses the IGST is creditable, but it is still cash out at the border, so it is included in landed cost here.
Rates depend entirely on the product’s HSN code; some goods carry nil or concessional duty under free-trade agreements. Confirm against the official CBIC / ICEGATE tariff before committing. All figures are computed in your browser and never uploaded.