India is one of the largest consumers of gold in the world. Every year, the country imports hundreds of tonnes of the precious metal to meet demand across jewellery manufacturing, investment portfolios, and industrial applications. If you are planning to import gold in India, understanding the regulatory framework, applicable duties, and procedural formalities is essential before you begin.
This guide walks you through the complete process of gold import in India. From RBI gold import rules and eligible entities to customs documentation and duty calculations, every critical aspect is covered here. Whether you are a jeweller, bullion dealer, or an individual returning from abroad, this resource will help you navigate the process with confidence.
Who Can Import Gold in India
Not everyone is permitted to import gold in India commercially. The Reserve Bank of India and the Directorate General of Foreign Trade regulate who can bring gold into the country through official channels. Here is a look at the entities authorised to do so.
Nominated Banks and Agencies. The RBI designates certain banks and agencies such as MMTC, STC, and other Public Sector Undertakings to import gold. These nominated entities purchase gold from international markets and sell it domestically to jewellers, refiners, and dealers.
Star Export Houses. Recognised star export houses in the gems and jewellery sector can import gold for manufacturing and re-export purposes. They must hold a valid IEC registration and comply with export obligations under the Foreign Trade Policy.
Authorised Refiners. Refiners approved by the Bureau of Indian Standards (BIS) can import gold dore bars for refining within India. This channel supports the domestic refining industry and reduces dependence on finished gold imports.
Individual Travellers. Indian nationals and persons of Indian origin returning after a stay abroad of six months or more can carry gold in the form of jewellery within prescribed duty-free limits. Men may bring up to 20 grams valued at Rs 50,000, while women may bring up to 40 grams valued at Rs 1,00,000 without paying customs duty.
Gold Import Duty in India: Current Rates
The gold import duty India rate directly impacts the landed cost of gold and, consequently, retail prices across the country. The Union Budget 2024 reduced the effective customs duty on gold from 15% to 6%, and the Budget 2025 retained this rate. This represents the lowest gold import duty in over a decade.
Here is a breakdown of the current duty structure.
For example, if you import gold worth Rs 10,00,000, the total customs duty payable would be Rs 60,000 at the current 6% rate. This calculation is based on the tariff value notified by the Central Board of Indirect Taxes and Customs (CBIC), which is revised periodically to reflect international gold prices.
Additionally, Integrated Goods and Services Tax (IGST) at 3% is levied on the assessable value plus customs duty. Businesses with valid GST registration can claim Input Tax Credit on the IGST paid, reducing their effective tax burden.
Duty-Free Gold Allowance for Passengers
If you are an Indian passport holder returning from abroad, you may carry a limited quantity of gold jewellery without paying customs duty. However, these concessions are subject to certain conditions.
Gold bars and coins carried by passengers do not qualify for duty-free treatment. Such items attract concessional customs duty rates, and passengers can bring up to 1 kilogram of gold bars or coins subject to declaration and full duty payment. Failing to declare gold at customs can lead to confiscation under Section 111 of the Customs Act, 1962.
Step-by-Step Gold Import Procedure
The gold import procedure in India involves several regulatory and documentation steps. Here is a structured overview of what commercial importers need to follow.
Step 1: Obtain IEC Registration. Every entity involved in importing goods must hold a valid Import Export Code issued by the DGFT. Without this code, customs clearance is not possible. You can apply for IEC registration online through the DGFT portal.
Step 2: Ensure RBI Authorisation. Only RBI-nominated banks, agencies, and authorised entities are permitted to import gold commercially. Verify your eligibility under the current Foreign Trade Policy and RBI guidelines before placing any orders.
Step 3: Place an Order with an International Supplier. Once authorised, the importer places a purchase order with an overseas gold supplier. The gold is typically sourced from LBMA-accredited refiners to ensure quality and compliance with international standards.
Step 4: Arrange Shipping and Insurance. Gold is shipped under strict security protocols. Adequate marine insurance is mandatory, and the shipping documentation must include the invoice, packing list, bill of lading, and certificate of origin.
Step 5: File the Bill of Entry. Upon arrival at the designated port, the importer or their customs broker files a Bill of Entry through ICEGATE, the electronic customs portal. The correct HS Code must be used. For gold bars and ingots, the relevant code is 71081200.
Step 6: Pay Customs Duty and IGST. The applicable customs duty and IGST are calculated based on the CBIC tariff value. Payment is made electronically, and the goods are released after duty clearance.
Step 7: Take Delivery. After customs clearance, the gold is delivered to the importer's designated facility. Proper records must be maintained for audit and compliance purposes, including income tax return filings that account for gold trading income.
RBI Gold Import Rules and Regulatory Framework
The Reserve Bank of India plays a central role in governing gold imports. RBI gold import rules ensure that only legitimate entities participate in the gold trade, protecting the country's foreign exchange reserves and controlling the current account deficit.
Key regulatory provisions include the following.
Nominated Agency System. Banks and PSUs nominated by the RBI act as the primary conduit for gold imports. They import gold on consignment basis or outright purchase and distribute it to domestic buyers.
Foreign Trade Policy Compliance. The DGFT's Foreign Trade Policy specifies conditions under which gold can be imported, including through Comprehensive Economic Partnership Agreements (CEPA) and Tariff Rate Quotas (TRQ).
Export Obligation. Certain categories of importers, particularly star export houses, must fulfil export obligations against the gold imported. Non-compliance can result in penalties and revocation of privileges.
Anti-Smuggling Measures. The reduction in gold import duty India from 15% to 6% was partly aimed at curbing gold smuggling. Lower duties narrow the gap between domestic and international prices, reducing the incentive for illegal imports.
Documents Required to Import Gold in India
Proper documentation is critical for smooth customs clearance when you import gold in India. Missing or incorrect paperwork can lead to delays, penalties, or even confiscation of the consignment.
Businesses engaged in regular imports should also maintain proper books of accounts and ensure timely filing of GST returns to claim Input Tax Credit on duties paid.
Taxation on Imported Gold: Beyond Customs Duty
The tax implications of importing gold extend beyond customs duty. Once gold enters the domestic market, several additional levies may apply depending on how the gold is used or sold.
IGST at 3% is levied on the total assessable value inclusive of customs duty. This is applicable at the time of import and is collected by the customs department. For entities with valid GST registration, this amount can be claimed as Input Tax Credit.
When imported gold is sold domestically, GST at 3% applies on the transaction value. Capital gains tax also applies when individuals or businesses sell gold. Short-term capital gains (for gold held less than 36 months) are taxed at the individual's applicable income tax slab rate. Long-term capital gains attract a 20% tax rate with indexation benefit.
Maintaining accurate records of purchase, sale, and valuation is essential, and professional assistance with income tax return filing can help ensure proper reporting of gold-related income.
