Why is my total more than the duty rate plus the IGST rate?

Because IGST is charged on the value including duty. The bases differ, so the rates compound rather than add.

Can I recover any of this?

A registered importer can claim the IGST as input credit. Basic customs duty and the surcharge are costs and cannot be recovered.

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Customs Duty Calculator

Customs duty on an import, with the cascade applied. IGST is charged on the value plus duty rather than on the value alone, so the effective rate exceeds the sum of the headline percentages.

Also called: import duty calculator, customs calculator india.

Total duty and tax

₹77,450

₹77,450 on an assessable value of 2,50,000, an effective rate of 30.98%. IGST of ₹49,950 is charged on the value plus duty, not on the value alone, which is what makes the total more than the sum of the headline rates.

Basic customs duty

₹25,000

Social welfare surcharge

₹2,500

IGST

₹49,950

Compensation cess

₹0

Landed cost

₹3,27,450

Effective rate

30.98%

On the cascade

IGST and cess apply to the value plus duty, so the effective rate exceeds the sum of the headline rates.

How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

Basic customs duty applies to the assessable value, which is cost plus insurance and freight. The social welfare surcharge is charged on the duty rather than on the value. IGST is then charged on the value plus both, which is the cascade: a ten percent duty and eighteen percent IGST come to more than twenty-eight percent because the IGST base includes the duty. IGST paid is creditable for a registered importer, so for a business the real cost is the duty and surcharge rather than the whole figure.

IGST applies to the duty-inclusive value, so duties compound rather than add

V: Assessable value

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

a standard import

Assessable value (CIF): ₹2,50,000
Basic customs duty: 10%
Social welfare surcharge on BCD: 10%
IGST rate: 18%
Compensation cess: 0%

Total duty and tax₹77,450

18% of 2,77,500, not of 2,50,000; note 30.98 exceeds 10 + 18

Open this example

no duty leaves IGST on the value alone

Assessable value (CIF): ₹2,50,000
Basic customs duty: 0%
Social welfare surcharge on BCD: 10%
IGST rate: 18%
Compensation cess: 0%

Total duty and tax₹45,000

boundary: the cascade disappears

Open this example

Method and limits

What it assumes

A single tariff line with the rates entered.

What it deliberately does not model

Anti-dumping, safeguard and countervailing duties apply to specific goods and are not included.
Preferential rates under trade agreements require a certificate of origin.
Valuation disputes over the assessable value are common and outside this calculation.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Why is my total more than the duty rate plus the IGST rate?: Because IGST is charged on the value including duty. The bases differ, so the rates compound rather than add.
Can I recover any of this?: A registered importer can claim the IGST as input credit. Basic customs duty and the surcharge are costs and cannot be recovered.