[Home](/)/[Resources](/resources)/India Customs Duty for Electronics IndiaCustoms / Import # India Customs Duty for Electronics: HSN Codes and BCD Rates India's customs duty on electronics is deliberately asymmetric — zero duty for IT products under ITA-1 commitments, high duty (20%) for smartphones to drive local manufacturing, and mid-range rates for components. Understanding the BCD + SWS + IGST stack and which exemption notifications apply to your product is essential for accurate landed cost planning. Copy Link[Share on WhatsApp](https://wa.me/?text=https%3A%2F%2Fkrono-labs.com%2Fguides%2Findia-customs-duty-electronics) At a glance Key HSN chapters 4 Duty components 4 ITA-1 zero-duty examples 5 ## Key HSN chapters for electronics imports ChapterDescriptionExamplesTypical BCD Chapter 84Machinery and mechanical appliances; computersComputers, servers, printers, 3D printers, industrial machinery, CNC machines0% for ITA-1 items; 7.5%–20% for non-ITA items Chapter 85Electrical machinery and equipment; electronic componentsSmartphones, TVs, LED products, batteries, cables, switchgear, transformers, motors0% for ITA-1; 5%–20% for others; 20% for mobile phones (sub-heading 8517.12) Chapter 90Optical, measuring, medical and precision instrumentsMedical devices, oscilloscopes, cameras, laser equipment, dental instruments0%–7.5% depending on sub-heading; medical devices often concessional Chapter 87Vehicles and automotive componentsElectric vehicles, automotive electronics, batteries for EVsVaries widely: EVs 60%–100%; automotive parts 7.5%–15% ## Duty components and calculation stack ### Basic Customs Duty (BCD) Varies by product (0%–40%) Basis: Applied on Customs Value (CIF value + landing charges) Primary import duty. Rate set in Customs Tariff Act or reduced by notification. ### Social Welfare Surcharge (SWS) 10% of BCD Basis: Applied on BCD amount Calculated as 10% of the BCD payable. ### Integrated GST (IGST) 5%, 12%, or 18% (most electronics 18%) Basis: Applied on (Assessable Value + BCD + SWS) IGST is creditable as Input Tax Credit for GST-registered importers. For end-consumers and non-GST importers, it is a final cost. ### Compensation Cess Applicable to certain goods (vehicles, tobacco, luxury) Basis: Applied on assessable value Most electronics are not subject to compensation cess. Verify for your specific product. ## ITA-1 zero-duty electronics (examples) Computers (laptops, desktops, tablets) — 0% BCD under ITA-1 and Customs Tariff exemptions Semiconductors (ICs, transistors, diodes, PCBs) — 0% BCD Telecom equipment (certain routers, switches) — 0% BCD under specific notifications Scientific instruments — 0% or concessional duty under Project Import / DSIR notifications Components for manufacturing mobile phones — 0% under phased manufacturing programme (PMP) for approved manufacturers ## Frequently asked questions ### Why do smartphones attract 20% BCD in India when computers are at 0%? India deliberately applies higher customs duty on smartphones (20% BCD under HSN 8517.12) to encourage domestic manufacturing under the Make in India initiative and Production Linked Incentive (PLI) scheme. The ITA-1 (Information Technology Agreement) zero-duty framework covers computers and certain electronics, but mobile phones were excluded. The high import duty makes local assembly in India economically attractive for global smartphone OEMs. ### What is the total landed cost percentage for importing electronics into India? The total landed cost depends on the BCD rate, but as a benchmark: for a product with 20% BCD, the effective duty load is approximately 20% BCD + 2% SWS (10% of BCD) + 18% IGST on the cumulative base = approximately 44–46% of CIF value total additional cost. For 0% BCD products (ITA-1 items), IGST of 18% still applies on CIF value, making total cost approximately 18–20% above CIF. IGST is recoverable as Input Tax Credit for GST-registered businesses. ### What is the ITA-1 agreement and which electronics get zero duty under it? The ITA-1 (Information Technology Agreement) is a WTO agreement under which India committed to zero customs duty on a list of IT products. These include computers, printers, fax machines, semiconductors, telecom equipment, and certain components. The zero duty applies under specific notification numbers — importers must cite the correct notification on the Bill of Entry. Products outside the ITA-1 list attract the standard tariff rate unless a separate exemption notification applies. ### Is IGST paid on imports recoverable? Yes — for GST-registered businesses in India, IGST paid at import is available as Input Tax Credit (ITC) against their GST output liability. This means the IGST paid on imports is not a net cost for businesses — it flows through the GST credit chain. For companies without GST registration (individuals, NGOs, certain exempted entities), IGST is a final cost with no recovery mechanism. This distinction significantly affects landed cost calculations for different import scenarios. **Disclaimer:** Customs duty rates change through annual Union Budgets and custom notifications. Always verify current BCD rates on the CBIC tariff portal before planning import costs. 🇮🇳 India roadmap for your product Every standard, document, and test that applies — free, no account required. See your free roadmap[ Want an expert to take your product through 🇮🇳 India compliance for you? One consultant from Krono's compliance team takes your product from requirements to legal sale, with a fixed quote before any work starts. See compliance services](/services) Learn this properly In-depth course that teaches the full process, not just this one answer. [Start the course — $149](/courses/04-bis-certification-for-electronics)[Prefer to read? 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