What are the custom duty changes on Gold over the period of last 10 years in India ?

 Here is a detailed review of how custom/import duty (and related levies) on gold in India have changed over roughly the past decade. I’ll first give a brief summary, then a more detailed chronological narrative, along with what drove the changes and their impacts.

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Brief Summary

• Over the past ~10 years (2014‑2024), India’s import/custom duty on gold has fluctuated several times: increasing to curb imports (especially to protect the trade balance / current account deficit), then reduced to boost domestic demand or formalize the supply chain.

• In 2024, a major cut reduced total duty on gold bars and finds from ~15% to ~6%, the lowest in over a decade. 

• Earlier, duty hikes occurred in 2019 (to ~12.5%), and again in 2022 (raising duty back up). 

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Detailed Timeline & Key Changes

Below is a year‑by‑year / period‐based breakdown of major duty changes, contextual factors, and what these meant for consumers, importers, jewellers etc.

Period / Year	Duty Rate(s) / Change(s)	Reason / Context	Impacts & Observations
2012‑2013	The duty on standard gold (purity 99.5% and above) was quite low earlier, but from 17 Jan 2012, duties started being raised: 2% → 4%, then 6% (from ~21 Jan 2013), then 8% (from 5 June 2013). Finally, on 13 August 2013, it was raised to 10%.	These increases were largely driven by concerns over the current account deficit (CAD), foreign exchange outflows due to gold imports, and pressure on the rupee. Government needed to moderate gold import volumes.	Higher input cost for jewellers; likely increased smuggling or informal channels; domestic prices rose.
2014‑2015	No very large changes in the base import duty (it remained high), though tariff values (the notional minimum price used for customs valuation) got updated periodically. Also some voices from industry asked for duty cuts to revive gem & jewellery exports.	Continued concern about trade deficit; gold imports had an outsized share of imports. Also, the jewellery sector was being hurt by high duties.	Imports were impacted; domestic jewellery industry under pressure; consumer demand somewhat subdued.
2019	In Budget 2019‑20, basic customs duty (BCD) on gold and other precious metals increased from 10% to 12.5%.	Again, to shore up fiscal revenues and contain the current account deficit. Imports of gold had surged, putting pressure on the external sector.	Higher landed cost of gold, which meant higher retail prices, potentially dampening demand; also encouraged informal channels or smuggling.
2021	In the February 2021 Budget, customs duty on gold & silver was cut from 12.5% to 7.5%.	The government wanted to reduce domestic gold prices, encourage legal imports, reduce the price gap that drives smuggling, and help the gems & jewellery export sector.	Some easing of cost for consumers; increased imports; jewellery trade saw some relief.
2022	From 1 July 2022, duty hike: Basic Customs Duty on refined gold bars / “gold dore” raised to ~12.5% and ~11.85% respectively. Total duty (including cess etc.) rose to ~15% for gold bars.	Rising trade deficit; possibly inflationary pressures globally; need for revenue; balancing domestic demand with external sector pressures.	Retail prices of gold increased; demand may have moderated; smuggling possibly increased again due to higher import cost.
2024	Huge reduction: In Budget 2024‑25 (effective ~24 July 2024), total customs duty on gold & gold bars/finding dropped from ~15% to 6%. In addition, for gold doré, duty reduced to ~5.35%.	The goal was to lessen the disparity between global and domestic prices, curb smuggling, support domestic jewellery demand, and stimulate economic activity (jobs, exports) in the gems & jewellery sector. Also, reduction in Customs Duties, plus Agriculture & Infrastructure Cess, to move more of the trade into formal channels.	Immediate decline in landed price of gold; surge in official imports; likely reduction in smuggling; better margins for jewellers; consumers gained from lower prices. But gold price overall also influenced by global price, forex, festival season etc.

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Other Relevant Factors & Observations

• Agriculture Infrastructure & Development Cess (AIDC) and other surcharges / cess / cess‐like duties have often added to the base customs duty. The measures do not just change BCD, but also these additional levies, which affect the total import cost. 

• GST (Goods & Services Tax) also applies on gold / jewellery, which adds another tax layer after the import duty and affects final retail pricing. But GST is separate from customs duty, though the two combined determine final cost. 

• The “80:20 rule”: for a while, India required importers of gold bullion to export 20% of the value in jewellery; this was a way to ensure value‐addition within India. It was in effect earlier but rolled back in November 2014. 

• Smuggling / unofficial imports often respond sharply to differences between domestic and international costs. When duties are high, smuggling tends to rise. When duties are lowered (especially sharply), that tends to reduce smuggling and push trade to formal channels. The 2024 duty cut was partly justified on that basis. 

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Implications Over the Decade

• High duties tend to make gold expensive domestically, hurting demand (except for investment demand) and increasing costs for the jewellery industry.

• They can lead to smuggling or grey‐market activity, when the cost gap between what the gold costs overseas vs what it costs in India is large.

• Lowering duties tends to stimulate legal imports, help bring supply into formal channels, reduce price distortion, and help the gems & jewellery sector (jobs, exports).

• But lowering duty also affects trade imbalance, foreign reserves, and may reduce government revenue from duties. So there is a trade‐off.