Duty and GST are not the same; they are distinct taxes, though both often apply to imported goods. Duty is a tariff on specific imported goods to regulate trade, while GST (Goods and Services Tax) is a broad, consumption-based tax applied to the overall value of most goods and services.
Although customs duty aims to control international trade and shield domestic industries from external forces, GST simplifies the taxation of goods and services in the country. For companies, and for those that engage in cross-border trade in particular, both are important to running efficiently and effectively.
Import Duty is calculated as a percentage of the goods value or Customs Value (CV) of your consignment. GST is calculated at 10% of the Value of the Taxable Import (VoTI). The VoTI is calculated by the addition of the Customs Value (CV) plus the Duty plus the value of the International Transport and Insurance (T&I).
The GST amount is generally 10% of the “landed value” of the goods. This includes: The customs value of the goods. Any duty payable.
Under GST, the IGST replaces previous indirect taxes imposed on the import of goods and services. However, customs duty and other protective taxes such as anti-dumping duty, safe-guard duty continue to be levied on imports, in line with the previous tax regime.
GST on Imports
IGST is calculated on the value of imported goods plus any customs duty (BCD + Social Welfare Surcharge). The standard rate of IGST is 18%, but it can vary based on the GST rates applicable to different products.
All goods brought into Singapore are subject to goods and services tax, currently pegged at 9 per cent. However, travellers are granted GST import relief based on the duration of their trip. For those who have been overseas for 48 hours or more, they are entitled to GST relief of up to $500.
Claiming GST on Imports: If you are GST-registered, you can claim back the import GST as an input tax credit in your GST return, provided the goods are used for taxable business activities. Ensure you hold supporting documents, such as a Customs import entry form, to substantiate your claim.
All duty and GST will have to be paid in full prior to delivery.
Here are 7 of the best ways to do just that—and start taking control of your importing expenses.
Subtracting GST from Price
To calculate how much GST was included in the price, divide the total price by 11 ($1000∕11=$90.91). To calculate the price without GST, divide the price by 1.1 ($1000∕1.1=$909.09).
Items exempt from customs duty vary by country but generally include personal effects (used household goods, clothing), specific relief/aid goods (disaster relief, medical supplies), educational/cultural items, samples for trade shows, and sometimes low-value gifts or specific categories like certain machinery or basic groceries, often with conditions or value limits, like the U.S. $800 traveler exemption or de minimis rules for small packages (though these can change).
Understanding Duties and Taxes
Duties and taxes are imposed to generate revenue and protect local industry; almost all shipments crossing international borders are subject to duty and tax assessment by the importing country's government.
In economics, a duty is a target-specific form of tax levied by a state or other political entity. It is often associated with customs, in which context they are also known as tariffs or dues.
A 12% import duty is a tax levied by a government on specific imported goods, increasing their cost to the domestic consumer, with India recently implementing a 12% safeguard duty on certain flat steel products (like coils, sheets) for up to three years to protect local producers from cheap imports, particularly from China and Vietnam, affecting products like hot-rolled and cold-rolled steel.
Items that are sold for use on international flights or sea voyages, such as airline food or duty-free items, are generally treated as GST-free as well, provided the goods are delivered onboard or at an appropriate export point.
The GST is applied to transportation services at either at the current rate percent or at 0 percent (zero-rated). PURE DOMESTIC MOVEMENTS When the shipment origin and destination are in Canada, the GST/HST/QST will be applied at the appropriate rate percentage based on destination.
Under the GST regime, tax is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the turnover threshold of Rs. 20 lakhs (Rs.
If you are a consumer (not a GST registered business) and you buy imported services, digital products and low value imported goods, the price may include goods and services tax (GST). GST applies at the point of sale in the same way as when you buy goods from businesses in Australia.
Import tax in Australia is made up of customs duty and the Goods and Services Tax (GST). Duty is a percentage of the goods' customs value, and GST is 10% of the total taxable value, which includes duty, shipping, and insurance.
GST import relief is granted on goods imported by post or air, excluding liquors and tobacco, with a total value not exceeding S$400. If the value exceeds S$400, GST is payable on the total value of the shipment. Please refer to the Customs website here for more information on importing by postal or courier service.
Canada Customs Duty Rates
Cereals, edible fruits and vegetables (not frozen or processed), edible roots and tubers, fish and meat (not packaged or processed), tender coconut, jaggery, tea leaves (not processed), coffee beans (not roasted), seeds, ginger, turmeric, betel leaves, papad, flour, curd, lassi, buttermilk, milk, and aquatic feeds, and ...
Before the introduction of the GST, imports were liable for different taxes such as customs duty, countervailing duty (CVD), and special additional duty (SAD). However, these have been substituted with a single tax named IGST under the GST regime. It has simplified the tax system and made it more consistent.
Exports and supplies to SEZs are classified as zero-rated supplies, meaning no GST is charged on them. Yet importantly, the supplier can still claim a refund of unutilised input tax credit—either by exporting under a bond/Letter of Undertaking (LUT) without paying IGST or by paying IGST and claiming the refund later.