Custom Duty on Readymade Garments in India 2026: Navigate Duties, Cut Costs, Stay Compliant

Overview of India's Import Duty Structure for Readymade Garments
India's customs framework for readymade garments is designed to balance domestic textile protection with international trade commitments. The structure primarily relies on Basic Customs Duty, which often features specific rate alternatives to prevent undervaluation. Total taxation is calculated cumulatively, including surcharges and integrated taxes applied at the point of entry.

Types of Duties and Taxes:

• Basic Customs Duty (BCD): This is the fundamental tax on imported goods, usually 20% to 25% for garments. It is often subject to a 'minimum' specific duty per piece to ensure floor pricing.
• Integrated Goods and Services Tax (IGST): Applied on the sum of the assessable value plus BCD. Most garments attract a rate of either 5% or 12% depending on the sale value.
• Social Welfare Surcharge (SWS): An additional tax calculated at 10% of the Basic Customs Duty. This surcharge supports government-led social development initiatives.
• Protective Duties: These include Anti-dumping or Safeguard duties applied to specific items. They are triggered to prevent injury to the domestic Indian garment industry from cheap imports.