India Import Duty Rate for Passenger Cars
HS 8703 · Motor vehicles for transport of persons
India MFN Import Duty Rate
Live60–100%
60% BCD for CIF ≤ $40,000; 100% for CIF > $40,000. IGST 28% + cess 15–22%. Total effective rate can exceed 200%.
Rate varies — verify exact HS subheading at the official tariff schedule.
How duty is calculated
CIF value
Product cost + international freight + insurance
Import duty (60–100%)
Applied to CIF value. EU, UK, and most countries use CIF.
IGST (18%)
Applied to CIF value + duty. Collected at customs.
Use our Landed Cost Calculator to compute the full cost including freight, brokerage, and last-mile delivery.
Worked example: passenger cars worth US$10,000
A commercial shipment invoiced at US$10,000 with US$900 of international freight and insurance. India charges duty on the CIF value (goods + freight + insurance), so the duty base is US$10,900. Customs converts the amount to INR at the official exchange rate on the day of import.
| Charge | At 60% | At 100% |
|---|---|---|
| Import duty | $6,540 | $10,900 |
| Social Welfare Surcharge (10% of duty) | $654 | $1,090 |
| IGST (18%) | $3,257 | $4,120 |
| Total paid at the border | $10,451 | $16,110 |
IGST is usually recoverable for a registered business, so the cost that stays with you is the duty and levies. The rate depends on the exact subheading, which is why the example shows both ends of the 60–100% range. Excise, anti-dumping duties and broker fees are not included.
Classifying passenger cars correctly
Heading 8703 covers motor cars and other vehicles principally designed to carry people, split by engine type and size: petrol, diesel, hybrid and fully electric (8703.80).
- Pick-ups and vans built mainly for goods go to 8704
- Electric vehicles have their own subheading and often a different rate or incentive
- Vehicles shipped as CKD kits may qualify for lower assembly rates
Compliance. Cars must meet the destination's homologation and emissions rules (EU whole-vehicle type approval, US FMVSS and EPA certification) before they can be registered.
Importing into India: what you need
The Central Board of Indirect Taxes and Customs (CBIC) assesses duty through the ICEGATE portal; Basic Customs Duty rates are in the First Schedule to the Customs Tariff Act, 1975.
Registration. An Importer-Exporter Code (IEC) from the DGFT and GST registration to claim input credit on IGST.
Low-value shipments. India has no general de minimis for commercial goods. Courier imports under the Courier Imports Regulations have value caps and the full duty stack applies.
Documents customs will ask for
- Bill of Entry (filed on ICEGATE)
- Commercial invoice and packing list
- Bill of lading or air waybill
- Certificate of origin for FTA rates (with CAROTAR 2020 origin information)
- BIS registration for electronics and other items under compulsory certification
Charges on top of duty
- Social Welfare Surcharge: 10% of Basic Customs Duty
- IGST at the GST rate of the goods on value + BCD + SWS
- Agriculture Infrastructure and Development Cess on some goods
- Anti-dumping and safeguard duties
Watch out. Under CAROTAR 2020 the importer must hold origin information when claiming an FTA rate — a certificate alone is not enough if customs asks.
Frequently asked questions
What is the import duty rate for Passenger Cars in India?
The MFN (Most Favoured Nation) import duty rate for Passenger Cars (HS 8703) in India is 60–100% on the CIF value. 60% BCD for CIF ≤ $40,000; 100% for CIF > $40,000. IGST 28% + cess 15–22%. Total effective rate can exceed 200%.
Is IGST charged on Passenger Cars imports to India?
Yes. India charges IGST at 18% on the CIF value plus any import duty. This applies to virtually all commercial imports.
Are there FTA rates available for Passenger Cars in India?
India has free trade agreements with SAFTA (South Asia), India–ASEAN FTA, India–Japan CEPA, India–Korea CEPA. Check whether your origin country qualifies for a preferential rate on HS 8703.
How is import duty calculated for Passenger Cars entering India?
Duty is calculated on the CIF value of the goods. CIF value includes the product cost, international freight, and insurance. The MFN duty of 60–100% is applied to this value. IGST (18%) is then applied on the duty-paid value.
Verify this rate
Duty rates change. Always verify the current rate at the official tariff schedule before importing.
Indian Customs Tariff (ITC–HS) official database ↗Quick facts