--- title: "New GST on Import Goods 2026: IGST, Customs Duty & Import Rules" description: "New GST rate on imported goods in 2026 varies by HSN code with IGST applied on all imports. Busy ensures accurate GST billing on every sale and purchase." canonical: "https://busy.in/gst-rates/import-goods/" author: "Apurva Maheshwari" published: "2025-05-15T12:32:10.000Z" category: "GST Rates" --- - Imported goods in India are taxed under both Customs Duty and Goods and Services Tax (GST). - New GST rates for imports include 18% for electronics, 5% or 18% for apparel, and 40% for luxury goods. - Low-value goods imported via courier under ₹5,000 also attract IGST based on the product category. - Importers can claim Input Tax Credit (ITC) on IGST if the goods are for business use and proper documentation is available. - All imports attract IGST in addition to customs duties, and sometimes a compensation cess for specific luxury items. # New GST on Imported Goods in India: Customs and IGST Whether you’re importing electronics, apparel, or business supplies, imported goods in India are subject to taxes under both Customs Duty and [**Goods and Services Tax (GST)**](https://busy.in/gst/) . If you’re a buyer or a business dealing with global trade, understanding **gst on import goods** helps you avoid surprises at the border. ## New GST Rate for Imports (IGST) in India The Government of India is updating GST rates effective after **22 Sep 2025**. Below are the **expected new GST rates** (IGST on import of goods; no compensation cess except for the special 40% bucket). ## New GST for Imports: Applicable Rates | Category of Goods | HSN Chapter | New GST Rate | | --- | --- | --- | | Electronics (phones, TVs) | 85 | 18% | | Apparel / Footwear | 61, 62, 64 | 5% or 18% (by item) | | Luxury goods (watches, perfumes, high-end accessories) | Varies | 40% (special slab) | | Toys, books, stationery | 95, 49, 48 | 0% / 5% / 18% (by item) | | Food items and packaged goods | 20, 21, 22 | 0% / 5% / 18% (by item) | Note: IGST is levied in addition to customs duties (e.g., BCD/SWS) as applicable; classification and exemptions continue to depend on the specific HSN. ## New GST on Low Value Imported Goods Low-value consignments imported via courier/post also attract IGST at the product’s applicable slab. | Type of Item | Imported Value | New GST Rate | | --- | --- | --- | | Apparel from international websites | < ₹5,000 | 5% or 18% (by item) | | Gadgets from foreign platforms | < ₹5,000 | 18% | | Personal use items (non-commercial) | Varies | Applicable at product’s New GST Rate | Reminder: The 12% and 28% slabs are discontinued; items formerly at 12% generally move to **5%**, and many at 28% move to **18%**. A narrow luxury/sin list falls under the **40%** special slab. ## Is GST Applicable on Imports? Yes. Under Indian tax law, imports are treated as inter-state supplies, and hence **Integrated GST (IGST)** is applicable in addition to customs duties. So, when a product enters India from another country, it attracts: - Basic Customs Duty (BCD) - Social Welfare Surcharge (SWS) - IGST (GST for imports) - Compensation Cess (if applicable on luxury/sin goods) **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) Live Demo Available Today ## Bill Import Goods in Multiple Currencies Without Conversion Errors Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## How is GST Calculated on Imports? Here’s how the value for IGST is calculated: **IGST = (Assessable Value + BCD + SWS) × Applicable GST Rate** Example: - Assessable value: ₹10,000 - BCD: 10% = ₹1,000 - SWS: 10% of BCD = ₹100 - IGST rate: 18% **IGST =** (₹10,000 + ₹1,000 + ₹100) × 18% = ₹11,100 × 18% = ₹1,998 **Total tax payable:** ₹1,000 (BCD) + ₹100 (SWS) + ₹1,998 (IGST) **Explore a Free Demo of –** [**Best Inventory Management Software For Small Business**](https://busy.in/accounting-software/inventory-management/) ## Old GST for Imports: Applicable Rates ### (Old GST Rates – Applicable Until 21st September) | Category of Goods | HSN Chapter | IGST Rate | | --- | --- | --- | | Electronics (phones, TVs) | 85 | 18%–28% | | Apparel/footwear | 61, 62, 64 | 12%–18% | | Luxury goods (watches, perfumes) | Varies | 28% + Cess | | Toys, books, stationery | 95, 49, 48 | 12%–18% | | Food items and packaged goods | 20, 21, 22 | 5%–18% | Note: IGST is levied in addition to customs duties (e.g., BCD/SWS) as applicable; classification and exemptions continue to depend on the specific HSN. ## Old GST on Low Value Imported Goods ### (Old GST Rates – Applicable Until 21st September) Even low value imported goods are not exempt from GST. Items shipped via courier or postal services (under ₹5,000) also attract IGST. | Type of Item | Imported Value | GST on Low Value Goods | | --- | --- | --- | | Apparel from international websites | < ₹5,000 | 12%–18% | | Gadgets from foreign platforms | < ₹5,000 | 18% | | Personal use items (non-commercial) | Varies | Yes, GST applicable | **Get a Free Trial –** [**Best GST Accounting Software For Small Business**](https://busy.in/accounting-software/gst-accounting/) ## Can Importers Claim Input Tax Credit (ITC)? Yes. Registered businesses importing goods can [**claim Input Tax Credit**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) on IGST paid at customs, provided: - The goods are used for business - The importer has a valid GSTIN - The bill of entry (customs document) is available - The ITC is properly reported in [**GSTR-2B / GSTR-3B**](https://busy.in/gst/what-is-gstr-2b-and-why-is-it-important/) However, BCD and SWS are not eligible for ITC. ## Conclusion Understanding the **gst on import goods** is key for pricing products, clearing customs, and maintaining accurate records—especially if you’re an eCommerce seller, global trader, or regular online shopper. ## About the author **Apurva Maheshwari** I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant. ## Frequently asked questions ### Is GST applicable on all imported goods? Yes. All imports attract **IGST**, in addition to customs duties. ### What is the GST for imports under ₹5,000? Even low-value goods attract GST based on the product category (typically **12%-18%**). ### Can IGST on imports be claimed as ITC? Yes, if the goods are for business use and you are GST-registered. ### Do I have to pay both GST and customs duty? Yes. Imports attract **Customs Duty + IGST**, and sometimes **Cess** for specific goods. ### Is GST different for personal vs. commercial imports? The tax rates are the same, but **ITC is available only for business/commercial imports**. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)