How Does Customs Duty Calculated after GST in India

Calculate Customs Duty in India after GST

Whenever any kind of merchandise is imported into the country or exported from it to other regions, an indirect tax is levied on the products, and every country has different rules and policies for implementing it. The customs duty charged in India is defined under the Customs Act, 1962 and the Central Board of Excise & Customs (CBEC) is the regulatory body responsible for formulating the policies and measures regarding it.

There are two kinds of taxes levied –

  1. Customs duty on the imported items.
  2. Export duty on the exported products.


When the import duty is calculated on a product, the following things are kept in view – Integrated Goods and Services Tax

  • Integrated Goods and Services Tax
  • Compensation Cess
  • Basic Customs Duty


There are different rules and chapters allocated to various kinds of products which are imported. Different rates apply to different categories, and to determine which category your products fall under you can simply check out the tariff list on Central Board of Excise and Customs (CBEC) website. The duty tax can vary from 0% to even 150% depending on the product. Some products like lifesaving drugs are exempted from the tax.

The custom duty taxes include the following:

  • CESS (Education + Higher Education)
  • Countervailing Duty (CVD)
  • Landing Charge (LC)
  • Additional CVD


After the implementation of GST by the government, the way taxes are calculated has changed a little. Now, the Countervailing Duty (CVD) and Special Additional Duty of Customs (SAD) have been effectively replaced by Integrated Goods and Services Tax(IGST), hence this change must be kept in mind while finding out the net amount. The simple point to remember is, that IGST is calculated after all the necessary customs duty has been calculated and added to the product.


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  1. Pingback: What is the Meaning of Customs Duty in India and its Types - ShipRocket

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