Customs Duty Structure
BCD, AIDC, and IGST
India's import duty on gold is composed of three layers. The Basic Customs Duty (BCD) is the primary tariff levied under the Customs Act, 1962. The Agriculture Infrastructure and Development Cess (AIDC) was introduced in the Union Budget 2021-22 to fund agriculture infrastructure; it is applied on select imports including bullion. The Integrated Goods and Services Tax (IGST), levied at 3% on gold, applies at the point of import and mirrors the domestic GST rate. The total cost of importing gold now includes 10% BCD + 5% AIDC + 3% IGST, resulting in an effective landed cost significantly above the nominal 15% duty headline.
- BCD is credited to the Consolidated Fund of India; AIDC receipts are earmarked for agriculture and allied sectors.
- IGST on imports is collected by the Centre and then apportioned to states based on the destination principle.
- Prior to this hike, the duty structure was 5% BCD + 1% AIDC + 3% IGST = ~9% total.
- In 2024, the duty was reduced from 15% to 6% to curb smuggling and support the jewellery export sector.
● Tracked since May 13, 2026 · last seen May 16, 2026 · updates as the daily brief publishes
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