Importing goods into India means more than just the product price on your supplier's invoice. Customs duty, Social Welfare Surcharge (SWS), and IGST all stack on top of your CIF value — and getting the numbers wrong can wipe out your margin or surprise your buyer with a higher landed cost. This guide explains how Indian import duty is calculated, what each component means, and how to use Pitara's free customs duty calculator India for planning and quotations — before you file your Bill of Entry.
Indian import duty — the three main components
When goods arrive at an Indian port, customs assesses duty based on the assessable value (usually CIF converted to INR) and the HS code tariff rates. The three charges importers plan for most often:
- Basic Customs Duty (BCD): Applied on assessable value at the rate specified for your HS code (can be 0%, 7.5%, 10%, 20%, or higher depending on product).
- Social Welfare Surcharge (SWS): Typically 10% of BCD — not 10% of assessable value.
- IGST: Charged on Assessable Value + BCD + SWS (and other applicable duties). Rate matches GST slabs: 5%, 12%, 18%, or 28%.
Additional duties like Anti-Dumping Duty (ADD) or Safeguard Duty may apply to specific products — always verify on ICEGATE or with your CHA (Customs House Agent).
Customs duty calculation formula (simplified)
For planning purposes, the standard sequence is:
- Assessable Value (AV) = CIF value in INR (product + freight + insurance to Indian port).
- BCD = AV × BCD rate %
- SWS = BCD × 10% (standard rate on most imports)
- IGST base = AV + BCD + SWS
- IGST = IGST base × IGST rate %
- Total duty = BCD + SWS + IGST
Example: AV = ₹10,00,000, BCD = 10%, IGST = 18%
- BCD = ₹1,00,000
- SWS = ₹10,000 (10% of BCD)
- IGST base = ₹11,10,000
- IGST = ₹1,99,800
- Total duty ≈ ₹3,09,800
Step-by-step: use the Customs Duty Calculator
- Open Customs Duty Calculator on Pitara Tools.
- Enter assessable value (CIF in INR) — convert foreign currency first if needed.
- Set BCD rate from your HS code tariff schedule.
- Confirm SWS rate (default 10% of BCD for most goods).
- Select IGST slab (5%, 12%, 18%, or 28%).
- Review the breakdown: BCD, SWS, IGST, and total duty payable.
For currency conversion, pair with the Currency Converter to convert USD/EUR/CNY invoice values to INR before entering assessable value.
HS code — why it matters
Every imported product has an HS code (Harmonized System code) that determines BCD rate, any exemptions, and IGST slab. Two similar products can have very different duty rates. Before quoting landed cost to a customer:
- Look up your HS code on the CBIC customs tariff or ICEGATE
- Check for any notification-based exemptions (FTA, preferential rates)
- Confirm IGST rate matches the product category under GST
- Ask your CHA to verify before filing Bill of Entry
CIF vs FOB — assessable value confusion
FOB (Free on Board): Product cost only — freight and insurance added separately for duty calculation.
CIF (Cost, Insurance, Freight): Product + freight + insurance to Indian port — this is typically your assessable value base.
If your supplier quotes FOB, add ocean freight and marine insurance to get CIF before entering the calculator. For a full picture including port charges and per-unit cost, use the Landed Cost Calculator alongside this tool.
Common mistakes importers make
- Applying IGST on assessable value only — IGST base includes BCD + SWS
- Using outdated BCD rates after budget notification changes
- Forgetting SWS entirely in quotations
- Mixing up IGST (imports) with CGST+SGST (domestic sales)
- Not accounting for port handling, agency fees, and transport after duty
Planning vs official filing
Pitara's calculator is for estimates and planning — proforma invoices, supplier comparisons, and pricing decisions. Official customs filing goes through ICEGATE via your CHA with verified HS codes, supporting documents, and actual exchange rates on the date of Bill of Entry. Always treat calculator output as a planning figure, not a legal duty assessment.
Full import workflow tools
Import-export traders typically need several calculations together:
- CBM Calculator — estimate container volume for freight quotes
- Landed Cost Calculator — total cost per unit including duty and charges
- GST Calculator — domestic GST after import clearance
All tools on the Import/Export & Logistics hub run in your browser — no data sent to servers.
Start estimating import duty now: Customs Duty Calculator India — free, instant, and private.
Frequently Asked Questions
How is IGST calculated on imports?
IGST is charged on Assessable Value + BCD + SWS. Enter your IGST slab (5%, 12%, 18% or 28%) on that combined base.
What is Social Welfare Surcharge?
SWS is typically 10% of Basic Customs Duty on most imports in India — not 10% of assessable value.
What is assessable value?
Assessable value is usually the CIF value (product + freight + insurance to Indian port) converted to INR.
Is this calculator official for customs filing?
No. This is for planning and estimates. File through a CHA and verify HS code rates on ICEGATE.
FOB vs CIF — which do I enter?
Enter CIF in INR as assessable value. If your quote is FOB, add freight and insurance separately first.
Where do I find BCD rate for my product?
Look up your HS code on the CBIC customs tariff or ICEGATE. Rates vary by product category.
Try it free
Use our Customs Duty Calculator tool — runs in your browser, no upload required.
Open Customs Duty Calculator