Technical note · tax and duty
GST and customs on a sauna quote: three layers, and where each is decided
A quotation for imported equipment can carry a price, a customs layer and a domestic tax layer, and they do not all apply to every buyer. This note shows the structure, gives the rates that are verified at a primary source with the source and date, and marks the points where your accountant or customs broker decides.
In this note
Three layers in one quote
- The price. The value of the goods and the services, with freight and insurance to the site.
- The customs layer. Basic customs duty, a surcharge and integrated tax, charged when the goods enter India.
- The domestic layer. GST on the supply and on the installation services.
Which layers appear depends on who imports. If your company or the contractor is the importer of record, the customs layer is paid at the port and appears in the accounts of the importer. If a supplier delivers duty-paid, it is folded into the price. Ask the question first: who is the importer of record? It decides who pays the customs layer and who may be able to take credit for it.
What the GST rates are today
| Item | Rate | Source |
|---|---|---|
| The standard structure | 5% and 18%, plus 40% on a short list of demerit goods; 12% and 28% slabs no longer exist as standard slabs | PIB, Ministry of Finance, 3 September 2025, effective 22 September 2025 |
| Electric heaters, HSN 8516 | 18% | Notification 09/2025-Integrated Tax (Rate), 17 September 2025, Schedule II |
| Chillers and refrigerating equipment, HSN 8418 | 18% | Same |
| Power-driven pumps, HSN 8413 and 8414 | 18% | Same |
| Prefabricated buildings, HSN 9406 | 18% | Same |
| Construction and works-contract services, SAC 9954 | 18% general rate (9% CGST plus 9% SGST, or 18% IGST); no pool- or sauna-specific entry | CBIC Notification 11/2017-Central Tax (Rate), entry 3(xii) |
The cabin's own heading, whether a prefabricated building, a wooden article or something else, is a classification question for your chartered accountant and customs broker; we do not guess it. The headings above are the ones we could read at the primary source for the heater, the chiller, the pumps and the installation.
The customs layer: duty, surcharge, then integrated tax
Goods imported into India are liable to integrated tax under section 3(7) of the Customs Tariff Act, 1975, and section 3(8)(b) puts the basic customs duty, and any addition to duty, into the value on which integrated tax is charged. The Social Welfare Surcharge is 10% and is charged on the duties, not on the value of the goods (CBIC Circular 3/2022-Customs, 1 February 2022). So the order of calculation is the value, then the basic customs duty, then the surcharge, then the integrated tax on all three.
| Step | Rule | Illustration (rates are illustrative, not actual) |
|---|---|---|
| Assessable value | Value of the goods plus freight and insurance | 100.00 |
| Basic customs duty | Rate for the tariff heading, read from the Customs Tariff | 10.00 at an illustrative 10% |
| Social Welfare Surcharge | 10%, on the duty | 1.00 |
| Integrated tax | On value plus duty plus surcharge | 19.98 at 18% on 111.00 |
| Landed cost before domestic tax | 130.98 |
We publish no basic customs duty rate on this site. The schedule we could read was dated 30 June 2024, and a rate that may be out of date is worse than none. Your customs broker reads the rate for the heading from the Customs Tariff in force on the date of the bill of entry, and the exemption lists for the surcharge sit in CBIC notifications such as 11/2018-Customs and 07/2025-Customs.
How our ranges relate to the tax lines
Every range on this site excludes GST and includes an allowance for freight and import duty to a metro site. A firm quote itemises both, together with crane hire, civil work by others and approvals. When you compare two quotes, compare the layers one by one: a low price without a customs line may simply have left the importer out.
Seven lines to expect on a quote
- Equipment value, with the Incoterm the price is quoted on.
- Freight and insurance to the port of entry, and the inland leg to your site.
- Customs layer: duty, surcharge and integrated tax, or the statement that the supplier carries it.
- Installation supervision and commissioning.
- Local trades and civil works, listed as by others or as priced.
- GST on the supply and on the services, as separate lines.
- Validity date and the payment stages: 40 / 40 / 20, the last on a signed temperature test.
Where we stop
We are not tax advisers. The structure and the rates above are read from the primary documents, with dates, so that you can check them. Whether a business can take credit for any of the tax, how a particular line is classified, and which entity should import are decisions for your chartered accountant and your customs broker. The paperwork note covers the documents that go with the heater.
Three ways an imported quote can be put together
| Structure | What it means | What to check |
|---|---|---|
| Delivered, duty paid | The supplier brings the goods to your site with the customs layer paid and folded into the price | Who is the importer of record, and are tax lines still shown separately? |
| Ex-works or free on board, buyer clears | The price stops at the supplier's door or the port; the buyer or its broker clears customs | Who has an import registration, who pays the port charges and who arranges the inland leg? |
| Local importer resells | An Indian importer buys, clears and resells to you with its own mark-up and invoice | Which entity gives the warranty and the compliance papers? |
These are three common shapes of an imported quote. The one that suits you depends on who in your organisation is registered to import and on your accountant's advice. Our quote states which of the three it follows, and names the importer of record, before any deposit is asked for.
A worksheet for comparing two quotes
| Line | Quote A | Quote B | What to ask |
|---|---|---|---|
| Incoterm and place | Where does the price stop? | ||
| Equipment value | Same scope, same ratings, same heater model? | ||
| Freight and insurance | To the port or to the site? | ||
| Customs layer | Included, allowance or actual? | ||
| Installation supervision | Named supervisor, days on site? | ||
| GST lines | Which headings, which rates, shown separately? | ||
| Exclusions | Structure, feeders, drains, crane, approvals |
Is GST on a sauna 28%?
Not since 22 September 2025. The 28% slab is gone as a standard slab; the headings for heaters, chillers, pumps and prefabricated buildings are listed at 18% in Schedule II of Notification 09/2025-Integrated Tax (Rate). The rate for your cabin depends on its classification, which your accountant confirms.
Are your ranges inclusive of GST?
No. They exclude GST and include an allowance for freight and import duty to a metro site.
Can we claim input credit?
That depends on your entity, your use and your accountant's reading of the rules. We show GST as a separate line so that the credit, where it exists, can be claimed.
Further notes
Technical notes that continue this one
Heater paperwork for tenders
The BIS order of 2026, the EU declaration, mains data and origin papers: what to ask for with an imported heater.
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Shortlisting a sauna contractor
Seven questions, a scoring sheet and the terms that matter when a hotel or club procures a wellness package.
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Timber and steel in the monsoon
Which timber, which stainless grade, which gaskets and which routines keep a cabin sound in Mumbai and Goa.
Open the pageFrom note to drawing
Send the quote you are comparing; we mark its layers line by line
Send the plan; the layout comes back
A floor plan or three photographs, the location of the distribution board and what you intend to build. The reply is a 3D layout, an equipment schedule and a range in lakh.
Open WhatsApp with the briefSpecify the suite first