In India, gold is traded in many forms, including physically and digitally. Indians consume gold as jewellery, coins, bars, and investment assets.
However, the government carefully regulates all this gold trading through tariffs. Customs duty is a type of tax that is applicable on goods imported from different countries.
Similarly, when gold is imported from other countries to India, it is subject to customs duty. There’s also a limitation on the amount of gold individuals can carry from one country to another.
What is customs duty on gold in India?
An individual may bring any type of gold jewellery, coins, or bars to India from abroad. However, these gold commodities need to be declared at the time of arrival at the customs kiosks.
The customs officer then calculates the applicable customs duty on the amount of gold which the individual will have to pay.
Furthermore, not all gold is subject to customs duty. If gold is imported under a certain limit, it is duty-free.
Duty Free Gold Limit
The customs authority has prescribed a limit on duty-free gold imports for male and female travellers.
Indian Customs Gold Allowance for Male Travellers
- Male travellers are allowed to bring 20 grammes, or ₹50,000, of duty-free gold overseas.
- A 3% customs duty is applicable on gold quantities ranging from 20 to 50 grams.
- 6% customs duty is applicable on gold quantities ranging from 50 to 100 grams.
- A 10% customs duty is applicable on gold quantities above 100 grams.
Indian Customs Gold Allowance for Female Travellers
- Female travellers can carry 40 gms or ₹1 lakh worth of duty-free gold.
- A 3% customs duty is applicable on gold quantities between 40 and 100 grams.
- A 6% customs duty is levied on gold quantities between 100 and 200 grams.
- Imported gold above 200 grams is subject to a 10% customs duty.
Children under the age of 15 years are subjected to the same Indian customs rules as for female travellers. However, they are required to carry the paperwork as proof of purchase.
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Difference Between Customs Duty and Gold Import Duty
While the terms are often used interchangeably, there is a technical difference that affects how much tax you actually pay.
- Customs Duty (Basic Customs Duty - BCD): This is the base tax applied to the imported good.
- Gold Import Duty: This is the total effective tax, which includes the Basic Customs Duty plus other cesses like the Agriculture Infrastructure and Development Cess (AIDC).
To calculate the final import duty for gold, you must sum these components up. As of late 2025, the breakdown is as follows:
| Component | Rate |
| Basic Customs Duty (BCD) | 5% |
| Agriculture Infrastructure & Development Cess (AIDC) | 1% |
| Total Effective Import Duty | 6% |
| Social Welfare Surcharge (SWS) | Exempt |
- Note: This 6% rate applies to standard gold bars and coins. Gold dore bars (unrefined gold) attract a slightly lower duty of 5.35% to encourage local refining.
Customs Duty on Different Types of Gold
Here’s a breakdown of India's customs gold limit and duty tariffs
- No customs duty on gold bars less than 20 grams.
- Gold bars above 20 grams are subject to a 3% customs duty.
- 10% custom charges apply on gold bars of 1kg.
- 100 grams gold coin is also subject to a 10% customs duty.
- Gold coins between 20 and 100 grams are also subject to a 10% customs duty.
- Gold coins under 20 grams are free from customs duty.
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Commercial vs. Personal Gold Imports: Key Rules
The rules for custom duty on gold differ depending on whether you are a passenger carrying it in your baggage or a business importing it for trade.
1. Personal Imports (Passenger Baggage)
- Eligibility: Duty-free allowances apply only if you have resided abroad for more than 6 months.
- Rates: If you exceed the duty-free limit (20g for men, 40g for women), you pay a concessional duty rate (usually 36.05% flat rate including cess for baggage) or the tiered rates mentioned above depending on the declaration.
2. Commercial Import Duty for Gold
For traders and jewelers importing gold via air cargo or courier:
- License Required: Imports are restricted and usually require a license or must be routed through nominated agencies (like banks).
- Standard Rate: The standard duty on gold import for commercial purposes is capped at the 6% effective rate mentioned in the table above.
- GST: In addition to the import duty, a 3% IGST (Integrated Goods and Services Tax) is applicable on the value of gold plus the customs duty.
How to calculate customs duty on gold in India?
Unlike other imported goods where tax is calculated on the bill amount, the customs duty on gold is calculated based on the Tariff Value fixed by the government. This prevents under-invoicing and ensures uniform tax collection.
The valuation is governed by Section 14(2) of the Customs Act, 1962, under which the Central Board of Indirect Taxes and Customs (CBIC) releases a notification every fortnight fixing the base price of gold (in USD per 10 grams) for tax purposes.
The 3 Key Factors for Calculation:
- Tariff Value: The base price of gold fixed by CBIC (not your invoice price).
- CBIC Exchange Rate: The currency conversion rate notified by customs (different from the market exchange rate).
- Effective Duty Rate: Currently 6% (5% BCD + 1% AIDC).
Latest Regulatory Updates
To ensure you pay the correct import duty for gold, it is crucial to track the 'Tariff Value' released by the Central Board of Indirect Taxes and Customs (CBIC).
- Tariff Value Revision: As of November 2025, the CBIC has revised the tariff value for gold (the base price used to calculate tax) to align with global market trends (approx. $1285 per 10 grams).
- Why this matters: Even if the duty percentage (6%) stays the same, an increase in the base tariff value means the actual amount of tax you pay in Rupees will increase.
HS Codes for Gold Import If you are filing a Bill of Entry, ensure you use the correct Harmonized System (HS) Codes:
- 71081200: Gold bars (other than tola bars) and ingots.
- 71081210: Non-monetary gold bars.
To validate their gold item, the individual is required to carry all invoices, bills, and proof of purchase. If an individual fails to pay the customs duty for their imported gold item, then that item is subject to confiscation under Section 111 of the Customs Duty Act 1962.
To determine the exact amount of customs duty, you need to calculate the total value of the gold based on the prevailing market rates. Using a gold rate calculator you can get the latest gold prices and accurately assess the duty payable.
Every year, the customs duty is revised during the Union Budget announcement. This year, Nirmala Sitharaman revised the customs duty on gold and other jewellery items.
Frequently Asked Questions (FAQs)
How much tax is on 24k gold in India?
In addition to import duties, all gold purchases in India attract Goods and Services Tax (GST). The current GST rate on 24k gold (including coins, bars, and jewellery) is a flat 3% of the value. If you are buying jewellery, you will also pay 5% GST on the making charges separately.
Why is customs duty on gold reduced?
The Government of India reduced the gold import duty from 15% to 6% (effective rate) to discourage illegal smuggling and bringing the domestic price of gold closer to international rates.
By lowering the tax barrier, the government aims to encourage importers to use official channels, thereby increasing transparency and tax compliance in the bullion market.
What is the gold import duty in India 2025?
As of December 2025, the total effective import duty for gold is 6%. This is composed of a 5% Basic Customs Duty (BCD) and a 1% Agriculture Infrastructure and Development Cess (AIDC).
This rate applies to standard gold bars and coins, while gold dore (unrefined gold) attracts a slightly lower rate of 5.35%.
How much gold can I carry to India without duty?
Passengers who have resided abroad for more than one year can bring gold jewellery duty-free up to specific limits.
- Men: Up to 20 grams, capped at a value of ₹50,000.
- Women: Up to 40 grams, capped at a value of ₹1,00,000.
- Note: This allowance applies only to gold jewellery, not to gold coins or bars.
Can I keep 1 kg gold at home in India?
Yes, you can legally keep 1 kg of gold or more at home, provided you have valid proof of purchase (invoices) and can explain the source of income used to buy it.
While there is no legal limit on ownership, CBDT guidelines state that during IT raids, officials will not seize gold up to 500g for married women, 250g for unmarried women, and 100g for men, even without immediate proof.
How much gold am I allowed to carry?
There is no upper limit on the quantity of gold you can carry to India, but you must declare it and pay taxes if it exceeds the duty-free allowance.
Dutiable: Any amount above this must be declared at the "Red Channel" at the airport. You will be charged the standard customs duty (approx. 36.05% for baggage) on the excess amount. Failure to declare can lead to confiscation and heavy penalties.
Duty-Free: Up to 20g (men) or 40g (women).
