Software and IT imports involve two distinct categories with very different customs treatment: tangible goods (servers, laptops, networking equipment, and peripheral hardware) and intangible software (delivered electronically). Physical hardware faces normal import duty; electronic software is an import of services subject to GST, not customs duty.
Tangible IT Hardware — Import Duty
| Product | HS Code | BCD | IGST | Notes |
|---|---|---|---|---|
| Servers (enterprise) | 8471.50 | 0% | 18% | ITA-1 zero duty |
| Laptops | 8471.30 | 0% | 18% | ITA-1 zero duty |
| Routers / switches | 8517.62 | 20% | 18% | Telecom goods: higher BCD |
| Storage systems (NAS/SAN) | 8471.70 | 0% | 18% | ITA-1 |
| Network cables, fiber | 8544.70 | 10% | 18% |
Information Technology Agreement (ITA-1) — Zero BCD
India is a signatory to WTO's ITA-1 (Information Technology Agreement) which provides zero BCD on a wide range of IT products including:
- Computers (all types)
- Semiconductor devices and chips
- Software on physical media
- Telecom equipment (some, not all)
- Scientific instruments (some)
Software Delivered Electronically — Not a Customs Import
Software downloaded from a foreign server (SaaS, cloud software subscriptions, software licenses) is an import of services, not an import of goods. Customs duty does NOT apply. Instead:
- GST applies under Reverse Charge Mechanism (RCM)
- Indian business pays IGST at applicable rate (18% for software services) under RCM
- This is declared in GSTR-3B; no bill of entry involved
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