Many people travel from Dubai to India carrying gold due to Dubai’s status as a major gold trading hub and the high demand for gold in India. If you’re planning to bring gold back from Dubai, it’s important to understand the rules to avoid extra charges and penalties.

Why Is Gold Cheaper in Dubai?

Gold is often less expensive in Dubai compared to India. This price difference largely results from Dubai not charging Goods and Services Tax (GST) on gold, while India imposes a 3% GST on gold jewelry and bullion.

Additionally, lower manufacturing costs in Dubai help keep prices down. Typically, gold in Dubai is about 5% to 7% cheaper than in major Indian cities. However, this gap has been narrowing recently.

Custom Duty on Gold

When bringing gold into India, customs duties are applied based on the type and quantity of gold. The Directorate General of Foreign Trade (DGFT) and the Customs Department set these rules, which can change, so it’s wise to check the latest guidelines before you travel.

Custom Duty Rates for Gold Bars

• Less than 20 grams: No customs duty.
• 20-100 grams: 3% duty on the value.
• More than 100 grams: 10% duty on the value.

Custom Duty Rates for Gold Coins

• Less than 20 grams: No customs duty.
• 20-100 grams: 10% duty on the total value.

Custom Duty Rates for Gold Jewelry

• Less than 20 grams, valued under INR 50,000: No customs duty.
• Less than 20 grams, valued over INR 50,000: 10% duty on the excess value.
• 20-100 grams: 10% duty on the total value, plus IGST and other taxes.

Duty-Free Limits

• For Male Passengers: Can bring up to 20 grams of gold worth up to INR 50,000 without paying customs duty.
• For Female Passengers: Can bring up to 40 grams of gold worth up to INR 100,000 without paying customs duty.
• For Children (under 15 years): Allowed to bring up to 40 grams of gold without paying customs duty. If exceeding 40 grams, duty is charged at 3% for 40-100 grams, 6% for 100-200 grams, and 10% for more than 200 grams.

How Custom Duty Is Calculated

Custom duty on gold is based on the item’s value and the applicable duty rate. The value is assessed using the global gold price for 24K purity on the day of import. For instance, if you import 1 kg of gold bars valued at INR 5 lakh, a 6% customs duty would apply, amounting to INR 30,000, plus IGST and other taxes.

Conclusion

To avoid issues when bringing gold from Dubai to India, adhere to the duty-free limits based on your gender and age. Carry all necessary documents and be ready to pay customs duties if you exceed these limits. With careful planning and compliance with regulations, you can bring gold from Dubai without unexpected costs.

FAQs

Who sets the limits on gold imports?

The Directorate General of Foreign Trade (DGFT) and the Customs Department of the Indian government set these limits. Check for the latest updates before traveling.

Can I bring gold in my luggage?

Yes, but there are limits on the amount you can bring without paying customs duties. Verify current regulations before your trip.

What are the custom duty charges for gold in 2023?

Duty ranges from 3% to 10%, depending on the quantity and type of gold.

Are there conditions for bringing gold to India without restrictions?

Yes, stay within the duty-free limits for your gender and age and provide proper documentation.

Do children face taxes on gold jewelry?

Children under 15 can bring up to 40 grams of gold without duty. For more than that, a 3% to 10% duty applies based on the amount.