DGFT caps duty-free gold imports at 100 kg as bullion levy doubles to 18.45%
Government tightens Advance Authorisation scheme with a 100 kg ceiling after raising gold and silver import duty to 15% from 6%. Total bullion levy now 18.45%, squeezing margins for Tanishq, Kalyan and listed jewellery retailers as FY26 gold imports hit $71.98B despite 4.76% volume decline.
What happened
DGFT · Government capped duty-free gold imports under Advance Authorisation scheme at 100 kg following a sharp duty hike to 15%, tightening compliance for
Key facts
- 100 kg cap on AA gold imports
- Import duty raised to 15% from 6% on gold/silver
- Platinum duty 15.4% from 6.4%
- Basic customs duty doubled to 10%
- AIDC raised fivefold from 1% to 5%
- Total bullion levy 18.45% from 9.18%
- Gold/silver imports $102.5B in FY26, +26.7% YoY
- Gold imports $71.98B, +24%
- Volumes down 4.76% to 721.03 tonnes
- Rupee record low 95.75/USD
Why this matters
The duty shock and AA cap accelerate consolidation logic—stressed mid-tier jewellers become attractive tuck-in targets for balance-sheet-strong incumbents seeking share gains as smaller players buckle under the 18.45% landed cost.