How does India charge customs duty?
India charges customs duty on the value of goods when they enter the country. The rate comes from the Customs Tariff, using each product's HSN code, and duty usually builds up in layers. Passenger baggage is the exception:
- It falls under one tariff heading, 9803.
- The rate is a flat 35% on the value above your allowance, about 38.5% with the surcharge.
- The item's own HSN code doesn't change it.
Courier shipments don't get the baggage rate.
This guide is our interpretation of India's published customs rules, for general information. It isn't legal or customs advice, and Smuggl isn't liable for loss from relying on it. Customs decides how your goods are treated when you land.
How is customs duty calculated in India?
Customs works out duty on the value of the goods, using the rate for their tariff code. Duty usually builds up in layers:
- Basic customs duty, at the rate the tariff gives for that code.
- A social welfare surcharge, usually 10% of the basic duty.
- IGST, charged on the value plus the duty so far.
- For some goods, extra levies on top.
Here is how the layers add up on ₹100 of goods, using made-up rates for illustration. A 20% basic duty is ₹20. The 10% surcharge on that duty is ₹2. An 18% IGST on ₹122 is ₹21.96. The total is ₹43.96, or about 44% of the value.
Because each code has its own rates, two goods with the same price can attract very different duty. On a cargo shipment, a bill of entry is filed and each product is classified under a tariff code. Courier shipments are assessed the same way. The baggage rate described below doesn't cover them, and the notification that sets it says so.
What is an HSN code?
HSN stands for Harmonized System of Nomenclature, a worldwide way of naming and numbering traded goods. The first six digits are the same in almost every country. India's Customs Tariff adds two more, so each product ends up with an eight-digit code, and each code carries its own duty rates.
GST uses HSN codes too. Both systems start from the same international list, so the first digits match, but the rates are set separately.
How is passenger baggage charged?
Goods a passenger brings in as baggage fall under one heading of the Customs Tariff, 9803: "all dutiable articles imported by a passenger or a member of a crew in his baggage". Notification No. 26/2016-Customs, updated for the 2026 rules, gives that heading a single rate.
| Detail | What the rules say |
|---|---|
| Tariff heading | 9803 |
| Rate | 35% ad valorem on the value above your allowance |
| With the 10% surcharge on that duty | About 38.5% |
| Unaccompanied baggage | The same 35% |
| Duty is charged on | Only the part above your allowance, not the whole price |
The item's own HSN code doesn't set the rate, so a camera and a set of cosmetics are charged alike once they're over your allowance.
Take a resident who returns with a new camera worth ₹1,00,000 and nothing else new. Their allowance is ₹75,000, so duty applies to the other ₹25,000. At about 38.5%, that's roughly ₹9,600. A ₹1,00,000 set of cosmetics would come to the same.
Which routes use HSN codes?
How the goods arrive decides how they're charged.
| How the goods arrive | How duty is set | Does the HSN code matter? |
|---|---|---|
| In your own baggage (accompanied) | One flat rate on the value above your allowance, under heading 9803 | No. The rate is the same for every item |
| Unaccompanied baggage, sent separately from you | The same flat rate. Declared on Form CBD-II | No |
| Courier | Not covered by the baggage rate. Assessed on the tariff for the goods | Yes |
| Cargo | Bill of entry, with each product classified under a tariff code | Yes |
What do you do at the airport?
- Add up what's new. Your allowance covers new items you carry, and used personal effects sit outside it. Our guides to the ₹75,000 limit and to used personal effects explain both, and the duty-free calculator keeps a running total for you.
- Declare anything dutiable in Form CBD-I through CBIC's Atithi app or ICEGATE. You can file up to three days before you land and update it until you arrive.
- Take the red channel if you have goods to declare. Our guide to the green and red channels explains which one is yours.
- Pay the duty. If you don't, customs can detain the goods. You can clear them later by paying the duty plus any interest and storage charges.
Frequently asked questions
How does India charge customs duty?
On the value of the goods, at the rate the Customs Tariff gives for their HSN code. Duty usually has several layers: basic customs duty, a social welfare surcharge, IGST and, for some goods, extra levies. Passenger baggage is the exception, with a flat 35% on the value above your allowance.
How is customs duty calculated in India?
Basic duty is the tariff rate applied to the value. The surcharge is usually 10% of that duty, and IGST is charged on the value plus the duty so far. With a 20% basic duty and an 18% IGST, for example, ₹100 of goods carries about ₹43.96 of duty. Real rates depend on the HSN code.
What is an HSN code?
A number from the Harmonized System, an international way of classifying traded goods. The first six digits are common across countries, and India's Customs Tariff extends them to eight. Customs uses the code to identify the goods, and the tariff attaches a duty rate to it.
Does customs use HSN codes for my baggage?
Not to set the duty. Passenger baggage is classified under tariff heading 9803, and the baggage notification gives that heading one rate: 35% on the value above your allowance. The item's own code doesn't change it.
What is the duty on baggage above my allowance?
35% ad valorem on the excess value, which is about 38.5% with the social welfare surcharge. Duty is worked out only on the part above the allowance, not on the whole value. Rates can change.
Is the duty the same for a laptop and for perfume?
Once an item is over your allowance, yes: the same flat rate applies to each. The rules separately allow one new laptop free of duty for passengers aged 18 or over, and that sits outside the ₹75,000.
Can I send goods to India by courier instead?
You can, but they don't get the baggage rate. The baggage notification excludes goods imported through a courier service, so they're assessed on their tariff code, and the amount depends on that code.
Is the HSN code the same as the GST code?
They come from the same international system, so the first digits line up, but they aren't the same list. Customs duty rates are set in the Customs Tariff, and GST rates are set separately.
Sources
Checked on November 13, 2026. Rules and rates can change.
- CBIC: Notification No. 26/2016-Customs, as amended by Notification No. 04/2026-Customs (the 35% rate on heading 9803, the explanation on excess value, and the courier exclusion)
- CBIC: Notification No. 14/2026-Customs (N.T.), the Baggage Rules, 2026 (the allowances)
- CBIC: Circular No. 04/2026-Customs, guidelines for uniform implementation of the Baggage Rules, 2026 (declarations and baggage procedures)
- CBIC: FAQs on the Baggage Rules, 2026 (Form CBD-I, the red channel, detained baggage)
- CBIC: Customs Clearance of Passengers At a Glance (baggage duty at 38.5%: basic duty 35% plus a surcharge of 10% of that duty)
Know someone flying to India soon?
Open the Smuggl web app