You've been eyeing that gold Sovereign at the Royal Mint. Or maybe you found a stunning 22ct chain in Birmingham's Jewellery Quarter.
Now comes the real question - how much of it can you bring back to India without customs officers stopping you?
We help UK NRIs navigate exactly these decisions every day at Belong. Our WhatsApp community is full of questions about gold limits, duty calculations, and customs procedures at Heathrow and Mumbai airports.
This guide cuts through the confusion with exact rules, real calculations, and practical tips from our team's experience.
Here's everything you need to know about carrying gold from the UK to India - what's duty-free, what's taxable, and how to stay compliant.
The Quick Answer: UK to India Gold Limits
For UK-based NRIs returning to India after 1+ year abroad:
Passenger | Duty-Free Limit | Value Cap |
|---|---|---|
Men | 20 grams (jewellery only) | ₹50,000 |
Women | 40 grams (jewellery only) | ₹1,00,000 |
Children under 15 | 40 grams (same as women) | ₹1,00,000 |
Maximum gold per trip: 1 kg per passenger
Beyond 1 kg: Prohibited for personal import (requires special licence from DGFT)
Critical point: These duty-free limits apply ONLY to plain gold jewellery. Gold coins, bars, and biscuits from UK dealers don't qualify - you pay customs duty from gram one.
Why UK NRIs Carry Gold to India
The UK has a thriving gold market, and several factors make buying there attractive:
VAT-Free Investment Gold Unlike silver (20% VAT), investment gold in the UK is completely VAT-exempt. This includes gold bars with 99.5%+ purity and coins like Sovereigns and Britannias. Source: HMRC VAT Notice 701/21
Trusted Hallmarking The London Assay Office provides rigorous hallmarking. Every piece carries a verified purity stamp - critical when selling in India later.
Competitive Pricing UK gold trades close to international spot prices. With no VAT on investment gold and transparent making charges, pricing is often cleaner than buying in India.
Quality Assurance Reputable UK dealers like the Royal Mint, Baird & Co, and Birmingham bullion houses provide certificates of authenticity - helpful for Indian customs clearance.
👉 Tip: Always keep your UK purchase receipts. Indian customs officers may ask for proof of purchase and authenticity certificates.
The July 2024 Game Changer: Import Duty Slashed to 6%
In the Union Budget 2024, Finance Minister Nirmala Sitharaman reduced customs duty on gold from 15% to just 6%. Source: World Gold Council
This was the sharpest reduction in over a decade.
Before July 2024:
- Basic Customs Duty (BCD): 10%
- Agriculture Infrastructure Development Cess (AIDC): 5%
- Total: 15%
After July 2024:
- Basic Customs Duty (BCD): 5%
- Agriculture Infrastructure Development Cess (AIDC): 1%
- Total: 6%
Effective rate with GST: Approximately 6.6%
This change made legal gold imports far more attractive. Gold smuggling became economically pointless when the legal duty dropped below the smuggling cost margin (previously 6-7%).
The duty cut remained unchanged in the Union Budget 2025, confirming this as the new standard rate.
Duration of Stay: The Critical Eligibility Rule
Your customs duty rate depends entirely on how long you've been outside India:
Duration Outside India | What You Get |
|---|---|
Less than 6 months | No duty-free allowance. Standard 36% duty applies |
6 months to 1 year | Concessional 6.6% duty on gold (no duty-free jewellery) |
More than 1 year | Duty-free jewellery allowance + 6.6% on excess |
What counts as "continuous stay"?
Short trips to India up to 30 days don't break your eligibility. But if you returned to India for more than 30 days during your qualifying period, the clock restarts.
We had a member in our WhatsApp community who spent 14 months in London but visited India twice for 20 days each during that period. His duty-free allowance remained valid because each visit was under 30 days.
👉 Tip: Keep your passport handy at customs. Officers verify your travel history using entry/exit stamps to confirm your duration abroad.
What Forms of Gold Can You Bring?
Different rules apply to different forms:
Gold Jewellery (Plain)
- Qualifies for duty-free allowance (if you've been abroad 1+ year)
- Excess quantity taxed at 6.6%
- Must be for personal use
- Studded jewellery with precious stones doesn't qualify for duty-free
Gold Coins, Bars, and Biscuits
- Never duty-free - regardless of how long you've been abroad
- Taxed at 6.6% from the first gram
- Maximum 1 kg per person
- Must declare at Red Channel
Gold Findings (Clasps, Hooks)
- Taxed at 15% (increased in January 2024)
- Typically not relevant for personal travellers
Example calculation:
Scenario: A UK NRI man brings 200 grams of gold coins purchased in London
- Duty-free allowance: ₹0 (coins don't qualify)
- Tariff value of gold (Dec 2025): Approximately ₹6,500 per gram
- Total assessable value: 200g × ₹6,500 = ₹13,00,000
- Customs duty at 6%: ₹78,000
- Additional cess (0.6%): ₹7,800
- Total duty payable: ₹85,800
Before July 2024, the same would have cost ₹1,95,000 in duty. That's a saving of over ₹1 lakh.
The 1 Kg Maximum: Why It Matters
Indian customs caps personal gold imports at 1 kg per passenger per trip.
Beyond 1 kg, you need a commercial import licence. This isn't available to individual travellers. The gold would be confiscated and you'd face penalties under the Customs Act 1962.
What counts toward the 1 kg limit?
- Gold jewellery (worn or carried)
- Gold coins and bars
- Gold biscuits
- Any gold items in your luggage
What doesn't count?
- Silver items (separate 10 kg limit)
- Platinum items (separate rules)
- Gold-plated costume jewellery (negligible gold content)
We've seen cases where families try to split gold across multiple bags. Customs officers are trained to spot this. If travelling as a family, each adult has their own 1 kg limit - but you must individually carry and declare your portion.
Step-by-Step: Customs Declaration Process
At UK Departure (Heathrow, Manchester, Birmingham)
No export restrictions on gold from the UK. You don't need to declare gold when leaving.
However, if carrying gold worth over £10,000, HMRC recommends having documentation ready in case of random checks at UK border.
At Indian Arrival
Step 1: Choose the Right Channel
- Green Channel: Only if you have nothing to declare (no gold beyond duty-free allowance)
- Red Channel: Mandatory if carrying dutiable gold or any gold coins/bars
Walking through Green Channel with undeclared gold is smuggling. Penalties are severe.
Step 2: Fill Customs Declaration Form
Complete the declaration form honestly. List:
- Total gold weight
- Form (jewellery, coins, bars)
- Approximate value
- Purchase receipts (if available)
Step 3: Duty Assessment
Customs officer will:
- Weigh your gold
- Assess value based on tariff value (not your purchase price)
- Calculate duty payable
Step 4: Payment
Duty must be paid in convertible foreign currency (GBP, USD, EUR).
If you pay in Indian rupees, a higher rate of 36% applies. Always carry sufficient foreign currency for duty payment.
👉 Tip: The tariff value used for duty calculation is set fortnightly by CBIC. It may differ from the price you paid. Check current rates here.
Documents You Must Carry
To ensure smooth customs clearance:
- Valid Passport - To verify duration of stay abroad
- Purchase Invoices - From UK jeweller or bullion dealer
- Hallmarking Certificate - London Assay Office stamp details
- Purity Certificate - Stating gold fineness (22ct, 24ct)
- Foreign Currency - For duty payment (sufficient GBP or USD)
Without proper documentation, customs may:
- Assess duty at higher rates
- Hold gold for verification
- Impose penalties
UK Gold Prices vs India: Is It Worth Carrying?
Let's compare real costs:
Gold Price Comparison (December 2025 estimates):
Location | 24K Gold per gram | Notes |
|---|---|---|
UK (Royal Mint) | ~£68 (~₹7,300) | VAT-free, international rate |
India (retail) | ~₹8,200 | Includes 3% GST, making charges |
Cost Analysis for 100g gold bar:
Buying in UK:
- Purchase price: £6,800 (~₹7,30,000)
- Customs duty at 6.6%: ₹48,000
- Total landed cost: ₹7,78,000
Buying in India:
- Retail price (with GST, making): ₹8,40,000+
Potential saving: ₹60,000+ per 100 grams
This gap narrows for smaller quantities where making charges matter less. For coins and bars specifically, UK purchase + legal import often works out cheaper.
However, for elaborate jewellery with heavy craftsmanship, India's artisan work might offer better value despite higher base prices.
Common Mistakes UK NRIs Make
From our years of helping UK NRIs, here are errors we see repeatedly:
1. Walking Through Green Channel With Coins/Bars
Even a single gold coin requires Red Channel declaration. There's no "small amount" exemption for non-jewellery gold.
2. Assuming Duty-Free Applies to All Gold Forms
The 20g/40g duty-free allowance is only for plain gold jewellery. Coins, bars, and even studded jewellery don't qualify.
3. Not Carrying Foreign Currency
Paying duty in INR triggers a 36% rate instead of 6.6%. That's a 5x cost difference for the same gold.
4. Splitting Gold Across Bags to Hide Total Weight
Customs has sophisticated scanning. If caught, you face confiscation plus 100-500% penalty under the Customs Act.
5. Buying From Untrusted Dealers Without Documentation
No receipt = problems at customs = delays, higher assessment, potential seizure.
What Happens If You Don't Declare Gold?
Non-declaration of gold is treated as smuggling under Indian law.
Consequences include:
- Confiscation: All undeclared gold seized
- Penalty: Up to 5 times the duty evaded
- Prosecution: Criminal case under Customs Act 1962
- Travel restrictions: Potential visa/passport issues
In 2023-24, Indian customs seized gold worth hundreds of crores at airports. Source: CBIC Annual Report
The 6% duty is reasonable. The risk of non-declaration simply isn't worth it.
Can You Claim VAT Refund on UK Gold?
Short answer: No.
Investment gold in the UK is already VAT-exempt. There's no VAT to refund.
For silver and platinum (which carry 20% VAT), the Retail Export Scheme exists. But gold doesn't qualify since it's already zero-rated.
This is different from Dubai, where tourists can claim VAT refunds on general purchases. In the UK, the VAT structure for gold is already favourable - you simply don't pay it.
UK vs UAE: Which Is Better for Gold Purchase?
Many UK NRIs travel to Dubai for gold. Here's a quick comparison:
Factor | UK | UAE (Dubai) |
|---|---|---|
Gold VAT | 0% (exempt) | 5% (refundable for tourists) |
Hallmarking | London Assay Office (rigorous) | Dubai Assay Office |
Making charges | Higher for jewellery | Lower overall |
Purity options | 22ct, 24ct common | 22ct, 21ct, 18ct common |
Price transparency | High | Moderate |
For investment gold (bars, coins), UK and Dubai are similarly priced.
For jewellery with intricate designs, Dubai often offers better value due to lower making charges.
But here's what matters most: the Indian import duty is the same (6.6%) regardless of where you bought the gold. What changes is your landed cost based on purchase price + duty.
👉 Tip: If you're investing for returns rather than wearing jewellery, consider GIFT City USD fixed deposits - tax-free returns without customs hassle.
Alternatives to Physical Gold Import
Carrying physical gold involves customs clearance, duty payment, and security concerns. Here are alternatives UK NRIs increasingly prefer:
1. GIFT City Fixed Deposits
Invest in USD-denominated FDs at GIFT City with tax-free interest. No customs. No currency conversion on repatriation. Compare rates using our NRI FD comparison tool.
2. Sovereign Gold Bonds (SGBs)
RBI-issued bonds backed by gold. Interest at 2.5% p.a. plus gold price appreciation. Capital gains tax-free at maturity. Available to NRIs via RBI guidelines.
3. Gold ETFs via NRI Demat Account
Invest in gold through Indian stock exchanges. Easy to buy/sell. Stored digitally. Requires an NRI demat account.
4. Digital Gold Platforms
Buy gold in small quantities online. Stored securely. Convert to physical on demand. Check gold investment options for detailed comparison.
Your Gold Import Checklist
- Before you pack gold for your India trip:
- Stayed abroad 1+ year for duty-free jewellery allowance
- Total gold weight under 1 kg per person
- Purchase invoices from UK dealer
- Hallmarking/purity certificates
- Sufficient foreign currency for duty payment (GBP/USD)
- Know your Red Channel declaration process
- Separated duty-free jewellery from dutiable items
What's Next?
Understanding gold rules is just one piece of the UK NRI financial puzzle. Whether you're investing savings, planning your return to India, or comparing NRE vs NRO accounts, getting the details right matters.
We built Belong because we kept seeing NRIs struggle with fragmented advice and complex regulations. Our team - including Savitri Bobde and Sai Sankar - works daily with UK and UAE NRIs on exactly these questions.
Join NRIs in our WhatsApp community for real-time answers and peer discussions.
Download the Belong app to compare FD rates, track GIFT Nifty, and access tools built specifically for NRIs.
