IGST on Imports
IGST (Integrated Goods and Services Tax) on imports is the GST levied on goods imported into India, charged in addition to Basic Customs Duty (BCD) and any applicable cess. It is calculated on the assessable value plus BCD, so duty and IGST compound, and it is paid at the time of clearing the Bill of Entry through ICEGATE.
For a GST-registered importer, the IGST paid at import is generally available as input tax credit, offset against output GST liability — so it is largely cash-flow rather than a final cost. Getting the classification and valuation right on the Bill of Entry is what determines both the BCD and the IGST payable.
IGST is often the largest single line on an Indian import's duty calculation, and because it is charged on value plus BCD, small classification or valuation errors compound. For importers it is mostly recoverable as input credit — but only if it is assessed and documented correctly at the Bill of Entry.
Is import IGST recoverable?
For a GST-registered importer, IGST paid at import is generally available as input tax credit against output GST.
How is import IGST calculated?
On the assessable value plus Basic Customs Duty (and any cess), so BCD and IGST compound.