Gold smuggling, popularized in the ’70s through Hindi films, has resurfaced following the arrest of Kannada actress Ranya Rao in 2025.
Gold smuggling cases have been reported from Dubai, London, and various other locations. The reason. Gold is cheaper in Dubai than in India. “People often bring gold from Dubai because it has lower gold prices (8-9% cheaper than India), lower making charges and no VAT on exports,” says Dr. Renisha Chainani, Head – Research at Augmont.
Bringing gold from Dubai or London isn’t illegal, but you need to be absolutely clear with the rules. The day you land in India, expect a welcome from the customs before your family members greet you.
And ofcourse, you need to declare all imported goods, including gold, when bringing them from abroad.
Now comes the most crucial part. The amount of gold you can bring depends on your gender and duration abroad, with no duty up to a certain limit; beyond that, customs duty applies.
So, how much gold can you bring to India from Dubai, after paying duty and as duty-free?
The maximum gold allowed via check-in baggage, if declared and duty is paid, is up to 1 kg of gold (1,000 grams). You should have stayed abroad for at least 6 months to bring 1 kg under customs rules.
Essentially, you have to prove your eligibility to bring gold on a flight from abroad.
An ‘eligible passenger’ can import gold (in any form except ornaments studded with stones and pearls), subject to payment of customs duty and compliance. An ‘eligible passenger’ has been defined as an Indian passenger holding a valid Indian passport who is returning to India after 6 months of stay abroad. Further, any short visit not exceeding 30 days during such 6-month period shall be ignored,” says Ayush A Mehrotra, Partner at Khaitan & Co.
Duty-Free Limit for Gold Imports into India
In India, the 1 kg gold rate today is about Rs 84 lakh. If you are saying that’s too much and you would rather buy a 2-Bhk home in the National Capital Region (NCR), here are the rules of gold buying in Dubai for fewer rupees.
Indian Passport Holders can bring up to 20 grams of gold (maximum value up to Rs 50,000) duty-free, while women can bring up to 40 grams of gold (maximum value up to Rs 1,00,000) duty-free.
24 carat gold price today in India is Rs 90,000 for 10 grams. But the maximum duty-free gold for men is allowed till Rs 50,000. It means, you can buy around 5 grams of gold abroad at current prices to bring to India.
How to bring in more gold than you are eligible for?
Got kids? Then you can bring extra duty-free gold. “Children under the age of 15 years can bring gold ornaments of a maximum of 40 grams (maximum value up to Rs 1,00,000) without paying a customs duty,” says Chainani.
Now, you have to prove that you purchased gold legally in Dubai. To verify that, be ready to show purchase invoices with the price and purity.
Wait! It’s not that you can bring only a limited amount of gold from abroad. What if you want to buy more gold than the duty-free prescribed limit?
The answer is simple. Go ahead and buy. All you need to do is pay Customs duty. Customs Duty is a broader term that includes all taxes imposed on imported goods. In gold imports, the import duty is 6%, but the total customs duty is around 9% after adding cess and GST.
Here’s how custom duty rates on excess gold pans out
- Custom duty rate of 3% when the gold quantity is 20 grams to 50 grams for males/ 40 grams to 100 grams for females and children
- Custom duty rate of 6% when the gold quantity is 50 grams to 100 grams for males/ 100 grams to 200 grams for females and children
- Custom duty rate is 10% when the gold quantity is over 100 grams for males/ over 200 grams for females and children
Now, comes the really important part.
Is it better to buy gold in Dubai or India?
Let us see what the landed cost in India is if one buys 10 grams of gold in India and 10 grams in Dubai. Chainani illustrates it with scenarios:
Scenario 1: Buying 10 grams of Gold in India will cost Rs 90,000.
Scenario 2: Buying 10 grams of Gold in Dubai and Bringing to India (Duty-Free Limit)
Currently, Dubai Gold Price is Rs 82,000 per 10 grams and the duty-free limit for Women is 40 grams (Rs 1,00,000).
Since 10 grams is within the duty-free limit, no duty is applied. So, the landed cost in India (duty-free) will be Rs 82,000.
Between Scenario 1 and Scenario 2, buying gold from Dubai is better.
Scenario 3: Buying 10g of Gold in Dubai and Declaring it (Paying Duties)
Since this is beyond the duty-free limit, import duties will apply as per:
Basic Customs Duty (BCD): 6%
GST on Imported Gold: 3%
Step-by-Step Duty Calculation
Basic Customs Duty (6%)
6% of ₹82,000 = Rs 4,920
Taxable Value After BCD = Rs 82,000 + Rs 4,920 = Rs 86,920
GST (3%) on Taxable Value
3% of Rs 86,920 = Rs 2,607.60
Total Duties Payable
BCD: Rs 4,920
GST: Rs 2,607.60
Total Duty: Rs 7,527.60
Landed Cost in India (with duties) = Rs 82,000 + Rs 7,527.60 = Rs 89,527.60
By buying gold from Dubai and paying customs duty, you end up saving just about Rs 473! (Rs 90,000 minus Rs 89,527.60)
Summing Up
So, is it cheaper to buy gold in Dubai than in India? Depends. Buying gold in Dubai is cheaper within the duty-free limit. For larger quantities, the savings are limited. But yes, if you’re visiting Dubai for a family vacation and plan to buy gold in bulk, make sure to compare the gold prices between Dubai and India before purchasing.
Also Read: Gold price retreats from record highs; what’s behind the latest gold price drop?