Custom duty India – Must for Traders

Custom duty is an indirect tax that the government levies when goods cross a country’s borders. The tax that governments impose on imported or exported commodities. Custom duty serves various purposes. It helps to stabilize the country’s economy, jobs, environment, and regulate the movement of products in and out of the country. Custom duty helps governments control on restricted items.

Custom duty India falls under the Customs Act 1962. The act enables the government of India to charge taxes from imports and exports, prohibit or regulate the import or export of goods, procedures for import/export of goods, rules and regulations, penalties, etc. All matters pertaining to the custom duty India are monitored of Center Board of Excise and Customs (CBEC). The CBEC runs under the Ministry of Finance.

Custom duty from India levied on nearly all commodities entering India. Export duty is charged on specific commodities detailed in second schedule. The government of India does not charge import duty on certain goods like fertilizer, food grains, lifesaving drugs, etc. Import duty India is classified into :-

· Basic Custom duty

· Countervailing duty

· Education Cess

· Protective Duty

· Safeguard duty

· Anti-dumping duty

The government of India made a major change custom duty from India. The GST or Goods Service Tax was introduced on 1 July 2017 and it replaced multiple indirect taxes across the country. The GST has three categories :-

· CGST (Central Goods and Services Tax)

· SGST (Sales Good and Service Tax)

· IGST (Integrated Good and Service Tax)

The CGST and SGST are used for intra-state transaction. The IGST is intra-state transactions. Custom duty India has been replaced by the IGST. The IGST Act2017 defines the import of goods as bringing goods into from outside of India. The import duty India rates are the integrated tax along with the basic customs duty.

Import duty India is charged on ad valorem or on specific basis. This means the import duty India is charged on the value of the product. The valuation is done according to the rules of Customs Valuation Rules 2007.

· Comparative value method

· Deductive value method

· Computed value method

· Fallback method

It is the duty of international trader to pay the correct SAC code finder. You can find the latest import duty India based on product Name or hs code finder on our website.