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The finance ministry, via customs notifications issued on the late evening of May 12, has raised overall import duty burden on gold from 6% to 15%. Know impact on jewellery prices:
If imported gold worth Rs 1 lakh earlier attracted about Rs 6,000 in import duty, it could now attract around Rs 15,000.
Gold Import Duty Hike 2026: Gold jewellery imports have become costlier from May 13 after the Centre sharply increased customs duty and AIDC (Agriculture Infrastructure & Development Cess) to 15 per cent on gold, silver and other precious metals in a major reversal of last year’s duty cut.
The Ministry of Finance, through customs notifications issued on the late evening of May 12, has raised the overall import duty burden on gold from 6% to 15%. The revised customs duty structure has come into force from May 13, 2026.
This comes less than two years after the government had slashed total gold import duty from 15% to 6% in the Budget 2024 to boost demand and curb smuggling.
What Has Changed
Earlier, gold imports attracted a Basic Customs Duty (BCD) of 5% and an AIDC cess of 1%, which means the overall import duty of 6%.
Now, from May 13, the government has increased BCD to 10% and AIDC to 5%, taking the effective total import duty to 15%.
The government has also increased duty on several precious metal products, including silver, platinum, jewellery findings, precious metal waste, catalysts and coins.
How Much Costlier Can Gold Jewellery Become?
The exact increase in jewellery prices will depend on international gold prices, making charges and GST, but the duty hike itself can significantly raise import costs.
For example, if imported gold worth Rs 1 lakh earlier attracted about Rs 6,000 in import duty, it could now attract around Rs 15,000.
That means the import-related cost alone rises by nearly Rs 9,000 per Rs 1 lakh of gold value.
For consumers, the actual increase in jewellery prices may vary depending on purity, jeweller margins and making charges. Industry experts expect retail gold jewellery prices to move higher as jewellers pass on at least part of the increased import cost.
Jewellery Components Also Affected
The notifications also revise duty on jewellery “findings”, small components used in ornaments such as hooks, clasps, screw backs and catches.
The revised rates are gold findings (5%), silver findings (5%), and platinum findings (5.4%).
Why Govt Has Raised Duty Again
The move comes amid rising concerns over India’s import bill and pressure on foreign exchange reserves due to geopolitical tensions in West Asia and rising global uncertainty. Prime Minister Narendra Modi had recently urged citizens to reduce non-essential imports, including gold purchases and foreign travel, to help conserve foreign exchange.
The government is also attempting to curb rising gold imports, which significantly impact India’s current account deficit and dollar outflows.
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