GST on Imports: Everything You Need to Know
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Importing goods into India? Then you must understand how GST (Goods and Services Tax) applies. Under the IGST Act, imports are treated as inter-state supplies, and IGST is levied in addition to customs duties. At Befach, we help businesses simplify GST compliance while importing goods.
How GST Applies to Imports
According to the Central Board of Indirect Taxes and Customs (CBIC), GST on imports is levied as IGST at the time of customs clearance. The importer pays IGST on the value of goods plus applicable customs duties.
Formula for IGST on Imports
IGST = (Assessable Value + Basic Customs Duty + Other Duties) × GST Rate
Example Calculation
Suppose you import goods worth ₹1,00,000. - Basic Customs Duty (BCD): 10% = ₹10,000 - Assessable Value = ₹1,10,000 - IGST @18% = ₹19,800
Total Import Cost = ₹1,29,800
Input Tax Credit (ITC) on Imports
The good news? Importers can claim Input Tax Credit (ITC) of IGST paid on imports, provided the goods are used for business purposes and proper documentation (Bill of Entry) is maintained.
Key Documents Required
- Bill of Lading / Airway Bill
- Commercial Invoice
- Packing List
- Bill of Entry (filed on ICEGATE)
- Insurance Certificate
- FSSAI License (for food imports)
Compliance Checklist
- Obtain an IEC (Importer Exporter Code)
- File Bill of Entry on ICEGATE
- Pay IGST and customs duties via CBIC portal
- Claim ITC on GST Portal
How Befach Helps Importers
At Befach, we provide end-to-end support for importers:
- Sourcing products at competitive prices
- Logistics and freight management
- Customs clearance and GST compliance
- Consultation for GST and ITC claims
Quick Summary
GST on imports is levied as IGST, calculated on the assessable value plus customs duty. Importers can claim ITC on IGST paid, provided they comply with CBIC, ICEGATE, and GST Portal requirements. With Befach’s sourcing, logistics, and clearance expertise, businesses can import confidently and stay tax-compliant.