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India Import Duty Rate for Solar Panels & PV Modules

HS 8541.40 · Photovoltaic cells and modules

India MFN Import Duty Rate

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40%

on CIF value

ALMM (Approved Models and Manufacturers) list compliance required. 40% BCD to promote domestic manufacturing.

How duty is calculated

CIF value

Product cost + international freight + insurance

Import duty (40%)

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: solar panels & pv modules 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 40%
Import duty	$4,360
Social Welfare Surcharge (10% of duty)	$436
IGST (18%)	$2,825
Total paid at the border	$7,621

IGST is usually recoverable for a registered business, so the cost that stays with you is the duty and levies. Excise, anti-dumping duties and broker fees are not included.

Classifying solar panels & pv modules correctly

Subheading 8541.43 (8541.40 before HS 2022) covers photovoltaic cells assembled into modules or made up into panels.

Panels with built-in inverters or other devices beyond simple diodes may move to 8501
Inverters are 8504.40 and mounting structures go to their material chapter
PV modules from China and South-East Asia face anti-dumping and countervailing duties in the US and other markets

Compliance. US imports must pass Uyghur Forced Labor Prevention Act supply-chain checks; the EU forced-labour regulation applies from December 2027.

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 Solar Panels & PV Modules in India?

The MFN (Most Favoured Nation) import duty rate for Solar Panels & PV Modules (HS 8541.40) in India is 40% on the CIF value. ALMM (Approved Models and Manufacturers) list compliance required. 40% BCD to promote domestic manufacturing.

Is IGST charged on Solar Panels & PV Modules 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 Solar Panels & PV Modules 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 8541.40.

How is import duty calculated for Solar Panels & PV Modules 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 40% is applied to this value. IGST (18%) is then applied on the duty-paid value.