Buying gold in Dubai is tempting — no VAT on jewellery, lower making charges, and a huge variety. But what you save in Dubai, you can easily lose at Indian customs if you’re not prepared.
The Duty-Free Limit
Indian customs allows a duty-free gold jewellery allowance based on how long you’ve been abroad:
- Stayed 6+ months abroad: Women — 40 grams | Men — 20 grams (value capped at ₹1,00,000)
- Stayed less than 6 months: Only ₹15,000 worth of goods total — gold included
What Happens Beyond the Limit?
Anything above your duty-free allowance attracts:
- Customs duty: 15%
- IGST: 3%
- Total: ~18% on the excess value
On a ₹2 lakh gold purchase, that extra tax can wipe out most of your Dubai savings.
Important Rules to Remember
- Gold bars and coins are not eligible for duty-free allowance — only personal jewellery qualifies
- Gold must be declared at the customs red channel if it exceeds your limit
- Undeclared gold beyond limits can be seized
Always check the latest CBIC guidelines before travelling — rules can be updated without much notice.