IGST Refund on Imports Claim Procedure 2026 Guide | BEFACH International
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IGST Refund on Imports: How to Claim & Timeline 2026
February 24, 2026
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IGST Refund on Imports: How to Claim & Timeline 2026
Thailand vs Vietnam Imports from India: A Complete Trade Cost Comparison for 2026
Thailand vs Vietnam Imports from India: A Complete Trade Cost Comparison for 2026
When you're planning to import from Southeast Asia, understanding the IGST refund on imports claim procedure is essential for accurate cost planning. Thailand and Vietnam consistently emerge as your top two contenders. Both countries offer competitive manufacturing, strategic locations, and growing trade ties with India. But which one delivers better value for your specific product category? And more importantly—what are the real landed costs when you factor in everything from customs duties to logistics, compliance, and your IGST refund timeline?
This guide gives you a side-by-side comparison of importing from Thailand versus Vietnam in 2026. You'll get actual numbers: HS codes, duty structures, shipping costs, and regulatory requirements that directly impact your bottom line.
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India's trade with ASEAN nations has been accelerating. Under the ASEAN-India Free Trade Agreement (AIFTA), both Thailand and Vietnam offer preferential duty rates on thousands of product lines—but the benefits aren't identical.
Vietnam's manufacturing sector has expanded aggressively in electronics, textiles, and furniture. Thailand remains dominant in automotive parts, processed foods, and industrial machinery.
Your choice between these two markets will affect not just your product cost, but your supply chain reliability, compliance burden, and long-term sourcing strategy.
Tariff Structure: Where Your Money Goes
Basic Customs Duty (BCD) Under AIFTA
Both Thailand and Vietnam benefit from AIFTA, but the applicable rates depend on your product's specific HS code and whether you can produce a valid Certificate of Origin.
Product Category
HS Code Range
Thailand BCD
Vietnam BCD
AIFTA Rate
Electronics & Electrical
85xx
7.5-15%
7.5-15%
0-5%
Textiles & Apparel
61xx-63xx
10-20%
10-20%
0-10%
Auto Parts
87xx
10-15%
10-15%
0-5%
Furniture
94xx
15-20%
15-20%
0-10%
Processed Foods
16xx-22xx
15-30%
15-30%
0-15%
Machinery
84xx
7.5-15%
7.5-15%
0-5%
Key Point: The AIFTA preferential rate only applies if your supplier provides a Certificate of Origin (Form AI) approved by the exporting country's designated authority. Without this document, you'll pay the standard MFN rate—often 2-3x higher.
Social Welfare Surcharge (SWS)
Social Welfare Surcharge at 10% applies on the Basic Customs Duty (not on the CIF value). This is identical for imports from both countries.
Integrated Goods and Services Tax (IGST)
IGST applies on the assessable value (CIF + BCD + SWS). The rate depends on your product HS code:
5% for essential goods
12% for standard goods
18% for most industrial products
28% for luxury/sin goods
💡 Pro Tip: Unlike BCD, IGST is fully available as input tax credit if you're GST-registered. Factor this into your working capital calculations.
IGST Refund on Imports Claim Procedure
Whether you import from Thailand or Vietnam, the IGST refund on imports claim procedure follows the same regulatory framework under India's GST laws. Since IGST is levied on imports to ensure parity with domestic goods, registered businesses can claim it as input tax credit (ITC) against their output GST liability.
Step 1: Obtain Valid GST Registration
Before initiating the IGST refund on imports claim procedure, ensure your business has an active GST registration with Import-Export Code (IEC). The GSTIN must be quoted on all customs documentation.
Step 2: File Accurate Bill of Entry
When your shipment arrives, file the Bill of Entry (BoE) electronically through ICEGATE. Declare the correct HS code, CIF value, IGST rate applicable to your product category, and your GSTIN. Errors in the BoE can delay your IGST credit claim.
Step 3: Pay IGST at Import Stage
Pay the calculated IGST at the time of customs clearance. This amount appears in your Electronic Cash Ledger on the GST portal within 24-48 hours of payment confirmation.
Step 4: Claim Input Tax Credit in GSTR-3B
The core of the IGST refund on imports claim procedure involves claiming credit in your monthly or quarterly GSTR-3B returns. Report the IGST paid under Table 4(A)(1) – Import of Goods. This credit auto-populates in GSTR-2A/2B based on customs data.
Step 5: Reconcile and Maintain Documentation
Reconcile your claimed IGST with GSTR-2A/2B generated from customs records. Maintain the following documents for audit purposes:
Copy of the Bill of Entry (with customs duty payment proof)
Commercial invoice from Thai or Vietnamese supplier
Certificate of Origin (Form AI) for AIFTA benefits
Timeline for Credit Utilization
Once claimed in GSTR-3B, the IGST credit reflects in your Electronic Credit Ledger immediately, available to offset against output tax liability. For excess IGST credit beyond liability, cash refunds typically process within 60 days of filing the refund application in Form RFD-01, as mandated under Section 54 of the CGST Act.
Common Compliance Issues
Indian customs authorities scrutinize IGST credit claims closely for imports from ASEAN countries. Ensure your transaction value matches the actual consideration paid to avoid valuation disputes. Also, verify that your supplier has correctly mentioned your GSTIN on the commercial invoice to ensure seamless data flow between ICEGATE and GSTN systems.
Shipping and Logistics Costs
Sea Freight Comparison (Average rates for FCL 20ft container to Nhava Sheva/Mundra)
Route
Transit Time
Freight Cost (INR)
Frequency
Bangkok → Nhava Sheva
10-14 days
₹1,85,000 – ₹2,40,000
Daily
Ho Chi Minh → Nhava Sheva
12-16 days
₹1,65,000 – ₹2,20,000
3-4x weekly
Laem Chabang → Mundra
12-15 days
₹1,75,000 – ₹2,30,000
Daily
Hai Phong → Nhava Sheva
14-18 days
₹1,70,000 – ₹2,25,000
2-3x weekly
Vietnam advantage: Slightly lower freight costs on most routes, primarily due to newer vessel deployments and growing shipping line competition.
Thailand advantage: More frequent sailings and better schedule reliability. If you're running just-in-time inventory, Thailand's daily sailings reduce your safety stock requirements.
Air Freight Comparison (Per kg, Mumbai/Delhi airport)
Route
Cost per kg (INR)
Transit Time
Bangkok → Mumbai
₹180 – ₹240
1-2 days
Ho Chi Minh → Mumbai
₹165 – ₹220
2-3 days
Bangkok → Delhi
₹190 – ₹250
1-2 days
Hanoi → Delhi
₹175 – ₹235
2-3 days
Compliance and Certification Requirements
BIS Certification Requirements
Both countries face identical BIS (Bureau of Indian Standards) requirements when exporting to India. Key product categories requiring mandatory BIS registration include:
Electronics: IS 616, IS 13252
Chemicals: Various IS standards
Food products: FSSAI licensing (not BIS)
Toys: IS 9873 series
The certification process timeline and costs are the same regardless of whether your supplier is in Thailand or Vietnam. Budget ₹75,000 – ₹1,50,000 and 45-90 days for BIS registration if your product falls under the Compulsory Registration Scheme (CRS).
FSSAI for Food Imports
If you're importing processed foods, both countries require:
FSSAI Importer License (₹7,500 annual fee for 1-year license)
Product-specific FSSAI compliance
Health certificates from exporting country authorities
⚠️ Watch Out: Vietnam's seafood exports to India have faced periodic testing requirements for antibiotic residues. Ensure your Vietnamese supplier provides comprehensive lab test reports to avoid detention at Indian ports.
Product-Specific Recommendations
Choose Thailand When:
Automotive components: Established supply chains to Indian OEMs, proven quality standards
Processed foods: Strong FSSAI compliance track record, established brands
Industrial machinery: Technical documentation and after-sales support infrastructure
Rubber products: Natural rubber raw materials and processed rubber goods
Choose Vietnam When:
Electronics & mobile accessories: Aggressive pricing, high volume capability
Furniture: Significant cost advantages in wooden and metal furniture
Textiles & garments: Competitive pricing, especially for basic apparel
Footwear: Growing manufacturing base with competitive rates
Regulatory Updates for 2026
Stay current with these recent changes affecting both trade corridors:
AIFTA Rule of Origin amendments: Stricter compliance requirements for claiming preferential rates. Maintain detailed manufacturing process documentation.
QCO expansion: More products added to mandatory Quality Control Orders. Check if your HS code falls under new BIS mandates before placing orders.
Customs valuation scrutiny: Indian customs has increased focus on transaction value verification, especially for imports from Vietnam. Ensure your pricing reflects genuine arm's length transactions.
Cost Calculation: Worked Example
Let's compare landed costs for a furniture import (HS 9403) worth USD 50,000 CIF:
Cost Component
Thailand
Vietnam
CIF Value
₹41,50,000
₹41,50,000
BCD (5% AIFTA)
₹2,07,500
₹2,07,500
SWS (10% of BCD)
₹20,750
₹20,750
Assessable Value
₹43,78,250
₹43,78,250
IGST (18%)
₹7,88,085
₹7,88,085
Total Landed Cost
₹51,58,335
₹51,58,335
Note: Actual freight differences would apply based on your specific shipment terms.
Final Verdict: Which Market Should You Choose?
Your decision between Thailand and Vietnam shouldn't rest on tariff differences alone—both offer similar AIFTA benefits. Instead, evaluate:
Product specialization: Match your product category to each country's manufacturing strengths
Supplier reliability: Vet manufacturer credentials, not just country reputation
Total landed cost: Include freight, insurance, handling, and compliance costs
Long-term scalability: Which market can grow with your volume requirements?
📌 Key Update: The India-Vietnam Comprehensive Economic Partnership Agreement (CEPA) negotiations are progressing. If concluded in 2026, this could provide Vietnam with tariff advantages over Thailand for certain product categories. Monitor DGFT notifications if Vietnam sourcing is part of your long-term strategy.
Frequently Asked Questions (FAQ)
Q1: What is the IGST refund on imports claim procedure for goods from Thailand and Vietnam?
A: The IGST refund on imports claim procedure is identical for both countries. After paying IGST during customs clearance, GST-registered importers claim input tax credit in their GSTR-3B returns. The credit reflects in your Electronic Credit Ledger and can offset against domestic GST liability, or be claimed as cash refund using Form RFD-01 if it exceeds your output tax.
Q2: How long does it take to receive IGST refunds for imports from these ASEAN countries?
A: Input tax credit reflects immediately in your Electronic Credit Ledger upon successful filing of GSTR-3B. For cash refunds of excess IGST beyond output liability, the refund processes within 60 days of submitting Form RFD-01 on the GST portal, provided all documentation including Bill of Entry and customs payment proofs are in order.
Q3: Can I claim IGST refund if I don't have a GST registration?
A: No. The IGST refund on imports claim procedure requires mandatory GST registration with Import-Export Code (IEC). Unregistered importers cannot claim input tax credit and must treat IGST as a cost component. This makes GST registration critical for businesses importing from Thailand or Vietnam to maintain competitiveness.
Q4: What documents are essential for the IGST refund procedure when importing electronics or machinery?
A: Regardless of product category (electronics HS 85xx or machinery HS 84xx), you need: (1) Bill of Entry with IGST payment proof, (2) Commercial invoice from supplier, (3) Bill of Lading/Airway Bill, (4) GST payment challan, and (5) Certificate of Origin (Form AI) if claiming AIFTA benefits. Keep these records for minimum six years as per GST law (Section 36 of CGST Act).
Q5: Does the AIFTA agreement affect IGST rates or refund procedures?
A: AIFTA reduces Basic Customs Duty but does not affect IGST rates or the IGST refund on imports claim procedure. IGST applies uniformly on the assessable value (CIF + BCD + SWS) regardless of whether goods originate from Thailand, Vietnam, or other countries. The refund procedure remains standardized under GST law.
How Befach International Helps
Whether you choose Thailand or Vietnam, importing involves complex documentation, compliance verification, and cost optimization. At Befach International, we handle:
Supplier verification and factory audits in both countries
AIFTA documentation to secure preferential duty rates
BIS/FSSAI compliance management for regulated products
End-to-end logistics coordination from supplier to your warehouse
Ready to start importing from Southeast Asia? Contact our team for a customized cost analysis based on your specific product HS code and volume requirements.
Sources:
Directorate General of Foreign Trade (DGFT): https://dgft.gov.in/
Central Board of Indirect Taxes and Customs (CBIC): https://www.cbic.gov.in/
ASEAN-India Free Trade Agreement tariff schedules
Ministry of Commerce and Industry trade statistics
TARGET KEYWORD: IGST refund on imports claim procedure
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