Imported goods generally attract IGST at customs on the assessable value plus applicable customs duties. Imported services generally attract IGST under reverse charge when the supplier is outside India, the recipient and place of supply are in India, and no special exception applies. Eligible registered businesses can claim import IGST or RCM credit after satisfying documentation and payment conditions.
Use the rule effective on the transaction date
This guide is a decision aid. GST rates, exemptions, valuation rules and portal procedures can change through notifications and circulars. Match the exact supply, HSN or SAC, parties, place of supply and invoice date against the current official material.
Do not file from a headline rate alone. Preserve the notification, classification working and transaction documents supporting the treatment selected.
Import of goods
Classify the goods under the Customs Tariff, determine origin and exemption eligibility, calculate assessable value and duties, and pay IGST through customs clearance. HSN examples must not replace product-specific classification.
Import of services
The IGST Act test generally requires a foreign supplier, Indian recipient and place of supply in India. Consideration, related-party Schedule I rules and specific place-of-supply provisions can change the outcome.
1 · IdentifyTransaction facts
2 · ClassifyHSN or SAC
3 · VerifyRate and date
4 · DocumentInvoice and return
Reverse charge
For a taxable import of service, the Indian recipient ordinarily pays IGST in cash under RCM and reports it in the applicable return. Foreign-currency conversion and time-of-supply rules should be documented.
Customs valuation and IGST
For goods, import IGST is applied to the customs valuation base after adding applicable basic customs duty and prescribed amounts. The rate follows the imported product’s GST classification.
Claiming input tax credit
For goods, match the Bill of Entry, GSTIN and ICEGATE data. For services, keep the foreign invoice, agreement, payment proof, RCM working and challan. Credit remains subject to business use and sections 16 and 17.
Common errors
Avoid reporting imported services in GSTR-1 as outward supply, claiming RCM credit before payment, using supplier country alone to decide place of supply, omitting free related-party services, or claiming credit against the wrong GSTIN.
Need a transaction-specific GST review?
Get support with classification, registration, valuation, ITC, invoices and return treatment.
Request GST supportFrequently asked questions
Who pays IGST on imported goods?
The importer pays through Customs at clearance.
Who pays GST on imported services?
The Indian recipient commonly pays IGST under reverse charge.
Is every foreign payment an import of service?
No. The supplier, recipient, place of supply, consideration and exceptions must be tested.
Can import IGST be claimed as ITC?
Eligible registered businesses may claim it with correct Bill of Entry and statutory compliance.
Is RCM reported in GSTR-1?
The recipient generally reports the liability and credit through the applicable inward-RCM fields, not as its outward supply.
Are free related-party services ignored?
Not necessarily; Schedule I can deem certain related-party business supplies taxable.
