How to Legally Import Gold in India: Duty, Documentation & Process

 

Introduction 

Gold has been a special part of the Indian economy, culture, and investment, and the country is among the largest consumers of precious metals in the world. As the demand increases annually, several companies and licensed agencies consider the option of obtaining gold in foreign markets. Nevertheless, due to the sensitivity and value of gold as a commodity, importation is highly restricted; it requires licensing and financial guidelines. These regulations play a crucial role in the prevention of fines and the success of trade activities. 

Businesses should have a clear understanding of documentation needs, compliance, and taxation before importing gold into the country, such as the custom duty on gold in India, which makes a strong impact on overall profitability. Good knowledge of legal processes not only shields the importers against regulatory risks but also assists them to budget and negotiating effectively and facilitates smooth involvement in the formal gold supply chain in India. 

 

Who Is Allowed to Import Gold in India? 

1. Nominated Agencies 

The nominated agencies are formally established organizations like MMTC, STC and some banks.  

2. Nominated Banks 

Various banks licensed by the Reserve Bank of India (RBI) are allowed to import gold to use it domestically. 

3. Exporters under Specified Schemes 

Exporters of gold jewellery or gold-related articles under some of the export promotion schemes may bring gold without paying any gold duty or at concessional rates, provided that high levels of compliance are observed. 

4. Jewellery Manufacturers with Authorization 

Some manufacturing plants that have been properly licensed and approved can also import gold as raw material to produce gold, if the material is pure and used as per specifications. 

5. Private Individuals (Limited Conditions) 

Individuals cannot freely import commercial quantities of gold. But those passengers who arrive in India can carry a restricted number under the passenger baggage regulations and this is subject to documents and payment of duty. 

 

Types of Gold That Can Be Imported 

• Gold Bars 
• Gold Coins 
• Gold Dore 
• Finished Gold Jewellery 

 

Step-by-Step Process to Legally Import Gold in India 

Step 1: Verify Authorization 

There are limitations on importing gold in India and only certain entities can import this gold, namely nominated banks, nominated agencies and authorized jewellery manufacturers. Make sure you are falling under an eligible category that has been approved by RBI or DGFT before starting the process. 

Step 2: Obtain Import Export Code (IEC) 

An IEC issued by DGFT is mandatory for any commercial import. Without an IEC, gold shipments cannot be cleared at Indian ports. 

Step 3: Register for GST 

The importers should be registered with an active GST. The GST information is needed in the documentation, tax credit claims and compliance after importation. 

Step 4: Get RBI Import License 

The imports of gold must be further approved by the Reserve Bank of India. Depending on the applicable RBI guidelines, the entities have to seek permission to import the gold as raw material in case of jewellery production. 

Step 5: Obtain BIS Certification 

Finished products and jewellery of gold may need to be compliant with BIS hallmarking. To prevent delays in clearance, the importers should ensure that purity standards meet BIS norms. 

Step 6: Prepare Import Documents 

The importer should compile all required documents, including: 

• Commercial invoice 
• Packing list 
• Assay certificate for purity 
• Insurance documents 
• Airway bill / Bill of lading 
• Authorization letters 

Step 7: Calculate and Pay Import Duties 

The importers will be required to calculate the relevant duties and taxes, using international price, purity, and valuation regulations of gold prior to the clearance. This assists in estimating the total cost landed prior to clearance. 

Step 8: File Bill of Entry & Clear Customs 

The Bill of Entry is submitted on the ICEGATE portal after the shipment has reached a port in India. The authorities check documents, purity, weight and value, then release the gold after paying the duty. 

Step 9: Comply with the 20:80 Export Rule 

Authorized jewellery exporters importing gold under concessional duty must follow the 20:80 rule—20% of imported gold must be exported as jewellery before the next import cycle. This ensures accountability and export-linked benefits. 

Step 10: Submit Compliance Reports 

The importers are required to keep good records and file regulatory reports as stipulated by the RBI, DGFT, and custom officials. This is so as to guarantee transparency and further eligibility to subsequent imports. 

 

Import Duty on Gold in India 

Import duty forms a major component of the total landed cost of gold, making it essential for importers to understand tax calculations before initiating shipments. The duty structure includes Basic Customs Duty (BCD), Agriculture Infrastructure Development Cess (AIDC), and GST, each determined based on the gold’s purity and international price benchmarks. To calculate the assessable value accurately, importers must always refer to the latest custom exchange rate notification, which defines the exchange rate applicable for customs valuation on the date of import. 

In addition to these duties, GST is levied on gold imports after customs valuation is completed. Businesses can check the exact GST percentage applicable to various forms of gold through tools like GST rate finder, which help determine tax liability when planning procurement costs. 

 

Conclusion 

Bringing gold into India is a process that must be strictly regulated so that one knows what is required to be imported, what requirements must be satisfied, the value of the gold, the calculation of duty, and what obligations to adhere to. Be it importing gold bars, coins, or doré, there are strict financial and procedural requirements that businesses need to comply with to be transparent and not to be penalized.  

With several checkpoints, such as authorization, valuation, payment of duties, and the checks of the customs, the Indian Custom Department is a key agency in the establishment of legal and safe imports of gold. 

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FAQs 

1. Who is allowed to legally import gold into India? 

Only nominated banks, nominated agencies, and authorized jewellery manufacturers can legally import gold. Individuals cannot import commercial quantities. 

2. Do I need an Import Export Code (IEC) to import gold? 

Yes. An IEC issued by DGFT is mandatory for any commercial gold import into India. 

3. What type of gold can be imported? 

Gold bars, gold coins, gold doré, and certain types of finished jewellery can be imported, subject to purity standards and authorization rules. 

4. How is the value of imported gold calculated? 

Gold valuation is based on international prices, purity level, weight, and applicable customs regulations. Duties and taxes are applied on the assessable value. 

5. Is GST applicable on gold imports? 

Yes. GST is applied after customs valuation. Importers must check the applicable rate and maintain proper compliance.