IGST on Imports (India)

IGST on imports replaced the old CVD and SAD components of Indian import duty after July 2017. For GST-registered importers, this was a major win — IGST paid at customs is fully claimable as Input Tax Credit (ITC), whereas CVD/SAD were only partially claimable. This guide explains IGST calculation, ITC claiming, common problems, and what to do when GSTR-2B data doesn't match.

IGST on Imports — Key Facts

• IGST rate on imports = domestic GST rate for the same goods
• Calculated on: CIF + BCD + SWS (not just CIF)
• Collected at customs along with BCD on the bill of entry
• For GST-registered importers: fully claimable as ITC
• For non-registered importers: final cost (no ITC)
• Flows to GSTR-2B automatically from ICEGATE monthly

ITC Claiming Process — Step by Step

1. Pay IGST on bill of entry via ICEGATE e-payment
2. ICEGATE sends data to GSTN; appears in GSTR-2B (Table 3 — Import of Goods)
3. Log in to GST portal; download GSTR-2B for that month
4. Verify: BoE number, GSTIN, IGST amount all match your BoE copy
5. In GSTR-3B, claim ITC in Table 4A(1) "ITC Available — Import of Goods"
6. ITC offsets your output GST liability first; excess goes to Electronic Credit Ledger

When IGST Doesn't Appear in GSTR-2B

Blocked ITC on Imports — Section 17(5) CGST Act

Even though IGST is paid at customs, ITC cannot be claimed for imports of:

• Motor vehicles for passenger transport (unless leasing/transport business)
• Food, beverages, beauty products for personal use
• Goods used for personal consumption
• Construction materials for buildings (unless property is sold)

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