What is custom duty in india

Customs duty in India is an indirect tax levied by the government on goods imported into or exported out of the country. Governed by the Customs Act, 1962, and the Customs Tariff Act, 1975, it serves as a major revenue source and a tool to regulate trade and protect domestic industries. The primary components include:

• Basic Customs Duty (BCD): Charged on the assessable value of goods.
• Integrated GST (IGST): Applied to imports to maintain parity with domestic products.
• Social Welfare Surcharge: Levied to fund various government welfare programs.
• Anti-Dumping and Safeguard Duties: Imposed to prevent unfair competition and sudden import surges.