Customs Duty On Carrying Gold To India

India is one of the largest consumers of gold globally, both for jewellery and investment purposes. Gold is seen as a symbol of wealth and it plays a crucial role in Indian traditions. Import of  gold to India is subject to strict regulations imposed by the government to manage its impact on the economy. These regulations include customs duties, which are taxes levied on imported goods, to control the flow of gold into the country.

Import duty rate

Import duties on gold and silver findings and coins of precious metals is 15%. 

BCD of 10% + Additional 5% under AIDC with an exemption from SWS = 15% Import Duty

The import duty on spent catalysts containing precious metals is 14.35

BCD of 10% + Additional 4.35% under AIDC with an exemption from SWS = 14.35% Import Duty

Here,

• BCD = Basic Customs Duty 
• AIDC = Agri Infrastructure Development Cess
• SWS = Social Welfare Surcharge

How much tax a person should pay to buy gold in India?

The total tax on gold to be paid by a buyer in India is 18%.

Total Tax 18% = BCD of 10% + 5% under AIDC with an exemption from SWS + 3% GST.

Impact of customs duty on gold & silver bars 

Earlier, basic customs duty on gold bars was 12.5% which was reduced to 10% but the Agriculture Infrastructure Cess was increased to 5% from 2.5% which means there is no change in tax incidence.

In case of silver bars, the duty and cess have increased, basic customs duty increase to 10% from 7.5% and the Agriculture Infrastructure Development Cess increased to 5% from 2.5%.

Last 10 Years Gold Price in India

Duty-Free Allowance on carrying Gold To India

No customs duty is required on gold jewelry and ornaments if:

• Total weight is less than 20 grams.
• Entire value is less than INR 50,000.

For Example: If weight is less than 20 grams but value exceeds INR 50,000, a 10% customs charge applies on the excess amount. 

Passenger residing abroad for over one year:

• Male passenger: Up to 20 grams with a value cap of INR 50,000.
• Female passenger: Up to 40 grams with a value cap of INR 1 lakh.

This is also applicable to children if living abroad for longer than a year.

Are gold coins, biscuits or bars permissible to bring within the allowed limit?

Passengers cannot bring gold coins, gold biscuits, or gold bars within the allowed duty-free limit as it incur duty charges because this exemption only applies to gold jewellery not in any other form of gold.