Buying gold in Dubai to sell in India? Here’s the real math on duty, GST and thin margins

Dubai is known for high-purity gold which is typically 5–7% cheaper than in India as there are no import duties and GST on bullion.

Under revised Baggage Rules 2026, travellers staying abroad for more than a year can bring limited gold jewellery duty-free. The price gap often creates the impression that buying in Dubai and selling in India guarantees easy profits. But the reality is more complex.

An Indian traveller who has lived abroad for more than one year can bring:
* Up to 20g (men) and 40g (women) of gold jewellery duty-free.
* This exemption applies only to jewellery, not bars or coins.

Suraj Nangia, founder of Nangia Global, explains that exceeding the duty-free jewellery limit attracts:
* Tiered customs duty starting around 3%, rising to 6% and 10% for higher quantities.
* Gold bars/coins attract a concessional 6% duty (if eligible, stayed abroad over 6 months).
* Short-term travellers may face 36–38.5% duty.
* 3% GST applies to sales in India, along with conversion costs (AED to INR).

Prithviraj Kothari, managing director at RiddiSiddhi Bullions Ltd, explains that gold price volatility and currency fluctuations can quickly erode expected gains. Legal and compliance risks are also significant, as undeclared or misdeclared gold may be seized, leading to heavy penalties.

Kothari explains that buying gold worth Rs 20 lakh in Dubai and selling it in India rarely makes commercial sense. The 5–7% price edge can be wiped out by a 6% customs duty, 3% GST, forex costs and resale discounts. After these, margins are slim while risks remain high.