India’s customs rules can determine whether gold bought in Dubai enters the country under a limited duty-free jewelry allowance or a separate import route, making weight and traveler eligibility central to the final cost.
India’s Baggage Rules 2026 took effect Feb. 2 and replaced the 2016 rules. The Ministry of Finance said the revised allowance removed earlier value caps and made the limit weight-based. A resident or tourist of Indian origin who has been abroad for more than a year may bring up to 40 grams of jewelry duty-free for a female passenger, or 20 grams for other passengers. Gold bars and coins fall outside this allowance. The Central Board of Indirect Taxes and Customs (CBIC) says other bona fide personal jewelry may be brought in with duty paid.
CBIC describes a separate route for people of Indian origin or valid Indian passport holders who have stayed abroad for at least six months. They may bring up to one kilogram of gold, including ornaments, subject to conditions and duty payment in convertible foreign currency. The Department of Economic Affairs said the effective import duty rose to about 15% from May 13, 2026, after increases to basic customs duty and the Agriculture Infrastructure and Development Cess. It said the higher rate was intended to discourage nonessential imports through price signals.
The UAE charges 5% value-added tax (VAT). The Federal Tax Authority (FTA) says its tourist refund terms require at least AED 250 in spending before VAT and deduct 13% of the requested VAT refund plus AED 3.60 per transaction. A traveler must be at least 18, enter on a tourist visa and not be a UAE resident. The purchase must come from a participating retailer, and export validation must take place within 90 days.
For purchases in India, CBIC says the goods and services tax on jewelry is 3% of the total transaction value, whether making charges are listed separately or not. NDTV Profit’s Nov. 3 report listed 22-karat gold at ₹11,435 per gram in Dubai and ₹12,800 in India.
