GST and Customs Duty for Indian Buyers

Importing into India from the Canton Fair runs through the general customs framework covered on this guide’s general customs page, plus a few India-specific mechanisms worth understanding before you place a commercial order.

The Import Export Code

Commercial imports into India generally require an Import Export Code (IEC), issued by the Directorate General of Foreign Trade (DGFT) — this is a baseline requirement for importing as a business, distinct from any personal-use allowance for a small quantity of goods.

GST on imports: IGST, not domestic GST

India applies Integrated GST (IGST) to imported goods at the point of entry, calculated on the assessable value plus applicable customs duty — this runs alongside Basic Customs Duty (BCD), not instead of it, meaning an imported shipment typically carries both a duty component and an IGST component rather than one or the other.

Registered for GST, or not, changes what you can recover

A GST-registered business importing for resale can generally claim input tax credit on the IGST paid at import, offsetting it against GST collected on subsequent domestic sales — an unregistered importer, or one importing for personal use, doesn’t have this option. Whether GST registration makes sense for your situation is a question worth raising directly with an accountant familiar with import transactions, not something to assume either way.

Get the HS classification right specifically for your product

Correct product classification matters especially here, since India’s duty and IGST structure varies by classification, and an incorrect code can mean paying the wrong amount or triggering a compliance question at the border that a correct filing would have avoided.

Why a customs broker is worth it for a first order

Between the IEC requirement, correct HS classification, and the combined duty-plus-IGST calculation, a first-time importer has several places to make a costly mistake. A licensed Indian customs broker familiar with this specific process is considerably cheaper than the cost of a shipment held up or incorrectly assessed at the border.

What’s next

Read the general customs framework this page builds on, or go back to the visa requirements for Indian buyers if you haven’t settled that side of the trip yet.

Frequently asked questions

Do I need an Import Export Code to import from the Canton Fair into India?

For commercial imports, an Import Export Code (IEC) issued by India's Directorate General of Foreign Trade is generally required — this guide treats this as the standard baseline rather than an edge case, though confirming current requirements for your specific situation with a customs broker or the DGFT directly is worth doing before you commit to an order.

Is GST charged on goods imported into India?

Yes, in the form of Integrated GST (IGST) applied at the point of import, in addition to basic customs duty — this guide describes the general structure rather than current rates, which change and should be confirmed for your specific product classification before you order.

Should I hire a customs broker for a first import into India?

For a first-time importer, yes — correctly classifying your product, calculating the right duty and IGST, and handling the paperwork correctly is a specialised skill, and a licensed customs broker is considerably cheaper than a costly classification mistake or a shipment held at the border.