Import Duty Calculator (India)

How import duty is calculated in India

Customs duty in India is not a single percentage — it stacks in layers on the landed value of your goods. Here's the order:

1. Assessable value (CIF) = product cost + insurance + freight to the Indian port.
2. Basic Customs Duty (BCD) — a percentage of the CIF value, set by the product's HS code.
3. Social Welfare Surcharge — 10% of the BCD amount.
4. IGST — charged on (CIF + BCD + surcharge), at the same rate as the domestic GST for that product.

The calculator above adds these up so you see the total duty payable and the final landed cost — the number you should actually price against.

Worked example

Import worth ₹1,00,000 + ₹1,500 insurance + ₹8,000 freight = ₹1,09,500 CIF. With 10% BCD (₹10,950), 10% surcharge on BCD (₹1,095), and 18% IGST on ₹1,21,545 (₹21,878), the total duty is about ₹33,923 — a landed cost near ₹1,43,423. Pricing on the ₹1,00,000 product cost alone would wipe out your margin.

Tips for importers selling online in India

• Always price on landed cost, not invoice cost — duty can add 25-45%.
• Claim IGST credit — registered businesses recover import IGST as input tax credit.
• Check trade agreements — FTAs (ASEAN, etc.) can reduce or zero the BCD for some origins.
• Watch for cess / anti-dumping duty on specific categories — they add on top of the above.

Once you know your landed cost, use the pricing calculator to set a selling price with your target margin and GST.

FAQs

How is import duty calculated in India?

BCD on the CIF value, plus 10% Social Welfare Surcharge on the BCD, plus IGST on (value + BCD + surcharge). The calculator above stacks all three.

What is CIF / assessable value?

Cost + Insurance + Freight — the total landed value at an Indian port, which customs uses as the base for all duties.

Does FlexiCommerce handle imported-product pricing?

FlexiCommerce stores landed cost per product and computes margin + GST automatically. See the demo.