Customs Duty on Gold in India: Import Rates, Rules & Calculation 2026

The customs duty on gold in India as of 2026 is 6% Basic Customs Duty (BCD) with a 0% Agriculture Infrastructure and Development Cess (AIDC), making the total import duty 6% on the CIF value. Additionally, 3% IGST applies on gold bars and coins, bringing the effective total tax to 9.18% on the landed value.

What is the current customs duty on gold in India in 2026?

The Union Budget 2024-25 introduced a landmark reduction in the customs duty on gold, bringing the rate down from 15% to 6%. This rate remains in effect in 2026. This significant change was aimed at boosting domestic jewellery manufacturing and reducing the incentive for gold smuggling.

The current structure for importing standard refined gold bars (99.5% purity and above) is straightforward:

• Basic Customs Duty (BCD): 6%
• Agriculture Infrastructure and Development Cess (AIDC): Nil (0%)
• Integrated Goods and Services Tax (IGST): 3%

The 3% IGST is calculated on the combined total of the CIF (Cost, Insurance, and Freight) value plus the 6% BCD. This results in an effective total duty of approximately 9.18%. Note that the rates for gold jewellery imports differ from raw gold bars, and typically attract a 15% BCD plus the applicable IGST, to protect local artisans.

How is gold import duty calculated step by step?

Calculating the exact import duty requires determining the CIF value first and then applying the customs duty and IGST sequentially. Here is how you can calculate the landed cost:

• Step 1: Determine the CIF value. This is the international market price of the gold (often based on the London Bullion Market) plus the cost of freight and insurance to bring it to an Indian port.
• Step 2: Apply the Basic Customs Duty (BCD) at 6% on the CIF value.
• Step 3: Add the AIDC. For standard gold bars, the AIDC is currently 0%.
• Step 4: Calculate the IGST. Apply a 3% IGST on the sum of the CIF value and the BCD.

For example, if you are importing 1 kg of gold with a CIF value of ₹60,00,000:

BCD (6% of ₹60,00,000) = ₹3,60,000
Assessable Value for IGST = ₹63,60,000
IGST (3% of ₹63,60,000) = ₹1,90,800
Total Duty Paid = ₹5,50,800 (Effective rate: 9.18%)

Who can legally import gold into India?

While the duty rates apply uniformly, not everyone can import gold in commercial quantities. The Reserve Bank of India (RBI) and the Directorate General of Foreign Trade (DGFT) strictly regulate gold imports.

The following entities can legally import gold for commercial purposes:

• Nominated Agencies: These are specific banks (like SBI, HDFC) and trading houses authorised by the RBI to import gold on behalf of local jewellers.
• Star Trading Houses: Recognized large-scale exporters with a proven track record can import gold under specific conditions.
• SEZ Units and 100% EOUs: Units located in Special Economic Zones (SEZs) or Export Oriented Units (EOUs) that manufacture gold jewellery strictly for export purposes can import gold duty-free.
• Advance Authorisation Holders: Exporters of gold jewellery can import gold without paying duty against their export commitments under the advance authorisation scheme.

Individuals cannot import gold in commercial quantities; they are limited to personal baggage allowances.

What are the rules for carrying gold through Indian airports?

Indian residents returning from abroad are permitted to bring a certain amount of gold duty-free as part of their personal baggage, provided they meet specific criteria. The passenger must be an Indian resident returning after a stay abroad of at least six months.

The current duty-free baggage allowance for gold jewellery is:

• Male passengers: Up to ₹50,000 worth of gold jewellery.
• Female passengers: Up to ₹1,00,000 worth of gold jewellery.

It is important to understand that this allowance only applies to jewellery. Gold bars and gold coins always attract customs duty, regardless of their value. Any gold carried beyond the duty-free limits must be declared via a Customs Declaration Form at the airport, and the applicable customs duty must be paid before clearance.

What are the penalties for undeclared gold at customs?

Failing to declare gold at Indian customs is considered a serious offence, commonly treated as smuggling, and attracts severe penalties under the Customs Act, 1962.

The consequences of carrying undeclared gold include:

• Confiscation: The undeclared gold is subject to absolute confiscation under Section 111 of the Customs Act.
• Monetary Penalties: Under Section 112, customs authorities can levy a penalty up to five times the value of the duty evaded, or the value of the confiscated goods.
• Prosecution and Arrest: For larger quantities, passengers can face criminal prosecution and immediate arrest. The threshold for arrest is typically when the value of the smuggled goods exceeds a specified limit (often ₹50 lakhs).
• Adjudication and Appeals: While passengers can appeal the confiscation or penalty to the Customs Excise and Service Tax Appellate Tribunal (CESTAT), the process is lengthy, and the initial burden of proof rests on the passenger.

Frequently asked questions

Q: What is the customs duty on gold in India in 2026? A: Following the rate reductions in the Union Budget 2024-25, the total customs duty on gold bars is 6% (BCD), with no AIDC. A 3% IGST applies on the combined value, bringing the total effective duty to approximately 9.18%. Gold jewellery imports continue to attract a higher rate of 15% BCD plus IGST.

Q: How much gold can I carry to India without paying duty? A: Indian residents returning after at least six months abroad can bring gold jewellery duty-free up to ₹50,000 for male passengers and ₹1,00,000 for female passengers. Any amount above this, as well as all gold bars and coins, must be declared and will attract customs duty.

Q: Who is allowed to import gold commercially into India? A: Commercial gold imports are restricted to nominated agencies (such as RBI-authorised banks), specific Star Trading Houses, SEZ units, 100% EOUs manufacturing for export, and holders of an Advance Authorisation licence. Individuals are not permitted to import gold commercially.

Q: What is the difference between gold dore and refined gold for customs purposes? A: Gold dore refers to semi-pure gold bars (typically 80-95% pure) imported by refineries, attracting a lower BCD of 5.35% under HSN code 7108 12. Refined gold bars (99.5% purity and above) fall under HSN code 7108 13 and attract a 6% BCD.

Q: Is gold import duty refundable for exporters? A: Yes, jewellery exporters can recover the duty paid on imported gold through the duty drawback scheme at rates specified in the All Industry Rates schedule. Alternatively, they can import gold duty-free under the Advance Authorisation scheme or operate from an SEZ or EOU.

Gold duty calculations change with every budget. Eximoz tracks the latest BCD, AIDC, and IGST rates in real time so jewellery exporters and nominated agencies always know their exact landed cost.

Import Duty Rates Table