Gold is woven into many celebrations in India. It is an integral part of marriages and festivals. It is also an important mode of investment for many families. However, there are certain things you must know before you consider bringing gold into the country or importing in bulk for sale. The import duty of Gold in India will determine how much you will end up paying. As of now, the duty is approximately 6%. This is the base customs duty plus an agricultural cess. But government policies are known to change and you should be on the lookout for any latest notifications before you consider importing gold.
What is Import Duty of Gold in India?
An import duty of gold in India is simply a customs tax for gold brought into India by air, sea, or courier.
What is import duty on gold in India and how is it practically implemented? The duty is assessed based on the value of gold as determined by customs and not based on the price you paid for it outside of India. Gold prices fluctuate based on the market, but the government maintains periodic updates to a tariff rate, so the assessed value is likely to stay around the same value.
Regardless of who is bringing gold into the country, whether it is a private individual, an NRI, a jeweler, or a commercial bullion trader, this duty is applicable. However, the amount of duty liability will certainly depend on the circumstances of the gold import. If your business activity involves trading in multiple precious metals, you may want to check our guide on Import Duty on Silver in India since there are many similar underlying principles of customs that are likely to be found there.
Components That Make Up the Duty
The complete import duty of gold in India does not represent an aggregate of gold import duties. The following form the components of the gold import duty:
- Basic Customs Duty (BCD), which is the principal component
- Agriculture Infrastructure and Development Cess (AIDC)
- Social Welfare Surcharge, wherever applicable
- Integrated Goods and Services Tax (IGST)
- Any other cess, which is levied on specific forms of gold
The effective rate typically hovers in the range of 6% to 6.5% for standard imports.
Current Gold Import Duty in India: Rates by Form
What, then, is the import duty on gold in India? The answer is contingent on the gold’s form: bars, coins, jewelry, or doré bars.
| Gold Form | BCD | AIDC | Approx. Total Duty |
| Gold bars | 5% | 1% | ~6% |
| Gold coins | 5% | 1% | ~6% |
| Gold jewellery | 5% | 1% | ~6% |
| Gold dore bar | 4.35% | 1% | ~5.35% |
The following rates represent the import duty of gold in India for typical commercial and personal imports. Compared to other forms of gold, dore bars are subject to significantly lower import duty rates since they are only partly refined, and the government supports, and thereby encourages, the further processing of dore bars to refine gold domestically.
Custom Duty of Gold in India: How It’s Calculated
The foundation to understanding the custom duty of gold in India is the assessable value, which is based on a price of gold announced by customs for every 10 grams of gold.
The gold custom duty is the product of the assessable value and the duty rate. For instance, if the assessable value for an import of 100 grams of gold is ₹650,000, and the duty rate is 6%, the gold custom duty is ₹39,000.
A few things can shift this number:
- The difference in value between 24K and 22K gold
- The tariff value set at the time of gold import as opposed to the prevailing market value
- If the importer is a passenger, NRI, or business importer
- The total quantity being imported
- If a trade agreement exemption is applicable
Getting the custom duty of gold in India right the first time prevents unexpected surprises at the airport or port.
Gold Import Duty in India for Different Categories of Importers
Not all importers pay the same and the structure is different for each type.
Passengers and NRIs
Travelers returning to India after residing abroad for over 6 months can bring limited amounts of gold duty free, usually 20 grams for men and 40 grams for women, as long as the jewelry is valued under a specific amount. Jewelry above the limits is subject to the regular duty.
Commercial and Business Importers
Businesses are required to possess a valid IEC and must import through the RBI designated agencies or banks approved for bullion trade. There are no duty free concessions for business importers. Custom duties are applied and removed for every gram of gold imported.
Documents You’ll Need
Getting the paperwork right saves time and prevents clearance delays. Before your import duty of gold in India gets finalized, customs typically wants:
- Passport (for individuals) or IEC certificate (for entities)
- completed customs declaration form at the point of entry
- Original invoice indicating the weight, purity and value
- Letter of authorization from the RBI or DGFT (if applicable)
- Payment of customs duties and collection receipt or payment challan
It is also advised to have both hard and soft copies of the aforementioned documents, particularly at busy entry ports.
Estimating Your Duty Before You Import
Daily fluctuations in the value of gold can make estimating customs duties challenging. The Customs Duty Calculator (available on the CBIC website or associated trade platform) allows for estimation of duties based on weight and purity prior to the actual import of gold. This is especially beneficial to importers who are new to the process in order to budget import costs and avoid unwelcome last-minute cash flow challenges.
Import Duty on Gold in India Compared to Other Metals
The Import duty on gold in India is levied at approximately 6 percent, unlike the other precious metals, which may have different tariff schedules. Importation duty on silver and platinum, for example, may vary on independent tariff schedules compared to gold, based on the prevailing market conditions. Gold is the metal that is most actively traded on the market, leading to more frequent and greater fluctuations of its market price compared to other metals.
A Quick Tip for New Importers
When new importers develop a budget for a trade, most expect to pay only customs duty. GST, insurance, and handling charges all increase the cost of bringing in goods. If the importation of gold is just one aspect of a larger trade plan, our Guide for New Export Entrepreneurs is a good resource that helps set up compliant trade operations.
Conclusion
Gold imports into India are not just a question of duty cost. The total is determined by the category of the gold, the category of the importing entity and the tariff value applicable. If you know the import duty of gold in India, have the required documents, and use the duty calculator and such tools, you can save time and avoid additional costs. If you are a traveler or an NRI or someone who needs to import gold to India for business, knowing the latest information on customs helps you avoid surprises.
FAQs
Q1. What is the current import duty on gold in India?
Import duty on gold is approximately 6% with the basic customs duty and agriculture cess included. The duty is subject to gold form and the latest government notification.
Q2. Is any gold jewelry exempt from duty?
Yes, NRIs returning after 6 months can carry gold jewelry exempt from duty, with men permitted 20 grams and women 40 grams.
Q3. What is the process of calculating gold import duty in India?
Custom duties are determined by the weight and purity of gold. Customs then applies the appropriate duty on the assessed value as per the relevant notifications.
Q4. Are there any duty exemptions on gold imports for businesses?
Duty exemptions are not available for commercial imports of gold. Every gold consignment is fully taxed as per its assessable value, without exception.
Q5. What are the consequences of not declaring gold at customs?
Failure to declare gold means seizure of the gold and the importer will face legal penalties as prescribed by the Customs Act, in addition to the duty owed.