Gold Import Duty in India
India charges 6% customs duty on imported gold: 5% basic customs duty plus a 1% Agriculture Infrastructure and Development Cess, a rate set in the July 2024 Union Budget. Because almost all of India's gold is imported, this duty is built into every jeweller's rate, and 3% GST is charged on top.
Live landed gold price in India (with 6% duty)
| Weight & purity | Price (INR) |
|---|---|
| 24K gold · 1 gram | live |
| 24K gold · 10 grams | live |
| 22K gold · 1 gram | live |
| 22K gold · 10 grams | live |
Indicative rate = live international gold price in rupees (TradingView FX_IDC:XAUINRG) plus India's 6% import duty, before 3% GST and making charges. How we calculate
How the duty is structured
| Component | Rate | Notes |
|---|---|---|
| Basic customs duty (BCD) | 5% | Set in the Union Budget |
| Agriculture Infrastructure and Development Cess (AIDC) | 1% | Collected with customs duty |
| Total customs duty | 6% | |
| IGST at import | 3% | Credited through the GST chain; the final buyer pays 3% GST |
Duty is calculated not on the invoice price but on a tariff value for gold that the Central Board of Indirect Taxes and Customs notifies regularly in US dollars, converted at the customs exchange rate. Tariff values track the market closely, so for consumers the effect is close to adding 6% to the international price in rupees.
Why the duty matters so much
India mines very little gold, so jewellers' raw material is imported as bars and doré by banks and nominated agencies. The duty therefore sets a floor under the domestic price: Indian gold trades roughly at the international price plus duty, adjusted by a dealer premium when demand is strong or a discount when it is weak. That is why the live table above multiplies the international rupee price by 1.06, and why the gap between Indian and Dubai prices is mostly the duty.
How duty changes have moved the rate
Governments have used gold duty to manage the trade deficit and smuggling. The rate was raised in steps from 2012 and reached 12.5% basic duty in the July 2019 budget. It was cut in 2021, when part of it was shifted into the AIDC, and raised again in July 2022 to an effective 15% (12.5% BCD plus 2.5% AIDC). The July 2024 budget reduced it to 6%, the lowest level in over a decade. Each change moved Indian prices immediately, independent of the international market.
Worked example: landed cost at 6% vs 15%
Suppose the international price is ₹12,600 per gram of 24K (illustrative):
| Step | At 6% duty | At 15% duty |
|---|---|---|
| International price per gram | ₹12,600 | ₹12,600 |
| Customs duty | ₹756 | ₹1,890 |
| Landed price per gram | ₹13,356 | ₹14,490 |
| Plus 3% GST | ₹13,756.68 | ₹14,924.70 |
| 10 g including GST | ₹1,37,566.80 | ₹1,49,247 |
At this illustrative price, the cut from 15% to 6% lowers the cost of 10 g of 24K by ₹11,680.20 after GST, about 7.8%. For 22K, multiply the landed price by 0.916: ₹13,356 × 0.916 = ₹12,234.10 per gram before GST and making charges. Check your own figures with the gold calculator.
Estimating the duty-paid rate yourself
You need two live numbers: spot gold in dollars per ounce and the dollar-rupee exchange rate. Divide the ounce price by 31.1035, multiply by the exchange rate, then by 1.06. With illustrative figures of $4,100 per ounce and ₹95.00 per dollar: $4,100 ÷ 31.1035 = $131.82 per gram; × 95.00 = ₹12,523; × 1.06 = ₹13,274 per gram of 24K. Bank and dealer quotes will differ a little because customs uses its own notified tariff value and exchange rate and because of the local premium or discount. See how the gold price is determined for the global side.
Effects beyond the price
- Smuggling: a large duty gap makes smuggling profitable, and smuggled gold undercuts legitimate imports. Lower duty narrows the incentive.
- Dubai comparison: the UAE does not levy customs duty on investment-grade gold in the same way, so its prices sit close to international parity. Compare Dubai with the India gold rate.
- MCX futures and ETFs: domestic gold futures and gold ETFs price in the duty, so their rupee value also jumps on budget day if the duty changes.
- Discounts and premiums: when local demand is weak, dealers sell below the duty-paid price; in festival or wedding peaks they charge a premium. See why gold rates differ by city.
Bringing gold into India as a traveller
Passengers arriving in India can bring a limited amount of gold jewellery duty-free, with limits that depend on factors such as gender, residence abroad and the length of stay. Gold above the allowance, and gold bars or coins, attract customs duty and must be declared at the red channel. The limits and conditions are set by Indian customs and are revised from time to time, so check the current baggage rules on the official CBIC website before you travel and keep purchase invoices for any gold you carry.