Import duty on solar panels from China to India is charged as Basic Customs Duty (BCD) on the assessed value, plus applicable cesses and IGST, classified under the solar module HSN code. China is the largest source corridor, but the duty means the ex-works price is never the price you pay, you have to calculate total landed cost. Duty rates are set by government notification and change with budgets and policy, so the single most important step is to confirm the current applicable rate for your HSN code against the latest customs notification before you commit. This guide explains how the duty is structured and how to build the landed-cost calculation; it does not quote a fixed rate, because that rate moves.
”- Duty on Chinese solar imports is Basic Customs Duty on assessed value, plus applicable cesses and IGST.
- The rate is set by government notification and changes, always confirm the current rate before committing.
- Correct HSN classification is essential, it determines the duty applied and prevents clearance disputes.
- Landed cost = ex-works + duty + freight + certification, compare corridors on this, never on sticker price.
- Duty can flip which corridor is cheapest, a higher ex-works price elsewhere can land lower than China.
How the duty is structured
When you import solar modules from China into India, the duty is not a single flat charge. It is built from components applied to the customs-assessed value of the shipment:
- Basic Customs Duty (BCD), the primary duty, charged as a percentage of assessed value under the solar module HSN classification.
- Anti-Dumping Duty (ADD), which can apply to specific products (such as solar cells or solar glass) from specific origins, imposed by notification for a defined period. ADD is separate from, and stacks on top of, BCD.
- Applicable cesses, such as social welfare surcharge, applied on top of the duty.
- IGST, integrated GST, applied on the landed value including duty.
Because these stack, the effective duty on Chinese solar imports can be substantial. Depending on the specific product, its classification, the source, and the notifications in force at the time, the combined effective duty has ranged from around 40% to over 70%. That is a wide band, and it is exactly why the ex-works price from a Chinese supplier tells you very little about your real landed cost, and why the corridor decision cannot be made on sticker price alone.
Important, please read: the 40% to over 70% band above is an indicative, illustrative range, not an exact or current rate for your shipment. Duties on solar imports, especially Anti-Dumping Duty, are set by government notification, are product and origin specific, and are time-bound, they change, lapse and get renewed. Do not plan an import on this range or on any figure from an article. Confirm the current applicable BCD and ADD for your exact HSN code and origin against the latest official customs notification, and with your customs broker, before making any commercial decision.
How to confirm the current rate
Because the rate moves, verification is the most important step. To confirm the duty that applies to your import:
- Identify the exact HSN code for your product, module versus cell classification matters and changes the duty.
- Check the latest customs notification for that HSN code, this is the authoritative current rate.
- Confirm with your customs broker or CHA, who works with the live tariff daily.
Never plan a large import on a duty figure from an old article or a supplier's casual estimate. A rate that changed since you last checked can turn a profitable order into a loss, or make a different corridor cheaper.
How to calculate landed cost
Landed cost is the only number that lets you compare corridors honestly. Build it like this:
| Component | What it is |
|---|---|
| Ex-works price | The supplier's factory-gate price per watt |
| Freight and insurance | Sea freight from China, insurance, inland transport |
| Basic Customs Duty | Current BCD rate on assessed value (confirm per notification) |
| Cesses | Social welfare surcharge and any applicable cess |
| IGST | Applied on the landed value including duty |
| Certification and clearance | Compliance verification and customs handling |
Only once all of these are added do you have a number you can compare against Vietnam, Thailand or another corridor. For the broader import process, see how to import solar panels into India.
China versus other corridors
China offers the widest range and the deepest volume, which is why it remains the default corridor for many buyers. But duty can change the maths. A module with a higher ex-works price from another corridor can land cheaper depending on the applicable duty and freight, so the corridor decision should always be made on landed cost.
Compare the China corridor against the alternatives using the corridor guides: China, Vietnam, Thailand, Malaysia. The most reliable way to compare is to post one RFQ and let verified suppliers across corridors quote against the same specification, so landed costs sit side by side.
Financing the order and the duty
Duty is payable at clearance, before your project pays you, which adds to the working-capital gap an import already creates. Rather than fund the full landed cost, including duty, from reserves, attach financing to the order.
Trade Finance and LC lets you pay the Chinese supplier safely and can lock the INR rate, protecting against currency movement between order and payment. PO Finance can fund up to 100% of the order value. For the full set of options, see how to finance a bulk solar panel purchase.
Compare corridors on true landed cost
VyaparCred lets you post one RFQ and receive verified quotes across China and alternative corridors, with duty, freight and certification factored in, so you compare landed cost, not sticker price.
Verified suppliers across China, Vietnam, Thailand and more quote against the same specification.
Landed cost is built with duty and freight, so corridors compare honestly.
Attach Trade Finance to pay suppliers safely and lock the INR rate.