Export and import tax, also known as customs duty, is levied when you bring goods into India or send goods out of India. For FY 2025-26, imports are generally taxed (customs duty plus IGST on imported goods), while exports are usually zero-rated for tax purposes (you don't pay tax on exports and can claim refund of any input taxes). Understanding import-export tax is crucial for businesses involved in international trade, as these taxes affect pricing, competitiveness, and profit margins significantly.
For FY 2025-26, when you import goods, you pay customs duty (which can be Basic Customs Duty, Countervailing Duty, Safeguard Duty, etc.) plus IGST. Customs duty rates vary by product - some items have 10% duty, some have 20%, and some have even higher rates depending on government policy and trade agreements. Imported services also attract IGST. On exports, you typically pay zero tax and can claim GST refund on inputs used to produce export goods. There are also incentives like MEIS, SEIS, and duty drawback schemes for exporters.
Our export import tax calculator helps you estimate the total tax burden on your imports or export benefits. For imports, you'll see customs duty, IGST, and cess separately so you can factor total cost into your pricing. For exports, you'll see how much GST refund you can claim. Many importers also need to pay GST on domestically sold goods, and they can claim input credit on import IGST paid. Understanding complete tax picture is essential for import-export businesses.
Import-export tax affects overall business profitability. If you're running a company involved in international trade, use our corporate tax calculator to see how customs duties impact your company's tax liability. Also, many import-export businesses are GST registered and need to comply with customs procedures, payment of duties, and claiming exemptions/refunds. The complexity increases with different product categories having different duty rates.
For customs duty rates, import procedures, and export incentives, visit the Central Board of Indirect Taxes and Customs website at CBIC official website which has updated customs tariff, import-export procedures, and duty rates for all product categories under the Indian Trade Classification system.
Input the value of goods or services in Indian Rupees.
Choose between Import or Export transaction.
Select whether the transaction involves goods or services.
For imports, select GST rate and customs duty category. For exports, taxes are automatically zero-rated.
Click calculate to see detailed tax breakdown and total amount payable.
Export and import taxation in India follows a destination-based taxation principle. This means goods and services are taxed in the country where they are consumed. As a result, exports from India are zero-rated, while imports into India are fully taxed to ensure a level playing field for domestic manufacturers.
When goods are imported, the tax system treats them similarly to domestic supplies by charging customs duty and Integrated GST (IGST). Customs duty protects domestic industries, while IGST ensures GST parity between imported and locally produced goods.
For exporters, the system is designed to remove tax burden entirely. Exporters do not pay GST on outward supplies and can claim refunds on taxes paid on inputs, making Indian exports globally competitive.
Exports are zero-rated for GST, meaning no GST is charged on export transactions. Exporters can claim refund of input tax credit on inputs used for exports.
Imports are subject to customs duty, IGST (Integrated GST), and cess. Customs duty is calculated on the transaction value, and IGST is calculated on the assessable value.
Ensure proper documentation, correct classification of goods, and compliance with customs regulations. Consult with customs agents or tax advisors for complex transactions.
Customs duty is not a single tax. It consists of multiple components depending on the nature of goods, country of origin, and applicable trade policies. Understanding these components helps businesses estimate true landed cost accurately.
In most cases, importers primarily deal with Basic Customs Duty (BCD) and IGST. However, certain goods may also attract safeguard duty, anti-dumping duty, or compensation cess depending on policy objectives.
In real-world trade operations, most tax disputes do not arise from incorrect tax rates but from misclassification of goods under HS codes. A minor classification error can change duty rates significantly and lead to penalties, interest, or shipment delays.
Another common issue is improper documentation during exports, which results in delayed or rejected GST refunds. Missing shipping bills, incorrect invoice values, or mismatch between GST returns and customs filings often trigger scrutiny.
Businesses that maintain accurate invoices, consistent product classification, and proper reconciliation between GST and customs data experience faster clearances and smoother refunds.
Exports are zero-rated for GST, meaning no GST is charged. Imports are subject to customs duty, IGST, and cess. The tax structure differs significantly between the two transaction types.
Customs duty is calculated as a percentage of the transaction value. The rate varies by product category, ranging from 8% for pharmaceuticals to 30% for luxury goods. The assessable value includes transaction value plus customs duty.
IGST (Integrated GST) is the GST applicable on imports. It is calculated on the assessable value (transaction value + customs duty) at the applicable GST rate (0%, 5%, 12%, 18%, or 28%).
Certain goods may be exempt from customs duty or IGST based on government policies, trade agreements, or specific exemptions. Check the latest customs notifications and tariff schedules for current exemptions.
Required documents include commercial invoice, packing list, bill of lading/airway bill, customs declaration, and any specific certificates or licenses required for the goods being imported/exported.
Yes. IGST paid on imports can be claimed as input tax credit if you are GST registered and the goods are used for taxable business supplies.
Exports are zero-rated under GST, meaning no GST is charged. However, exporters must comply with documentation requirements to claim refunds.
HS code (Harmonized System code) classifies goods internationally. Correct HS classification determines customs duty, IGST rate, and eligibility for exemptions.
Yes. Imports from countries under Free Trade Agreements (FTAs) may attract lower or zero customs duty if proper certificates of origin are provided.