Since 13 May 2026, India has been charging an effective import duty of about 15% on gold and silver bullion, and this layer is already present in every rate shown on a jeweller's board. As per CNBC, government had imposed a 10% basic customs duty along with a 5% tax on imports of both metals through notifications issued that week.
Xinhua reported on 13 May 2026 that the 5% part is the agriculture infrastructure and development cess (AIDC), and that the new rates had come into effect on 13 May. For the borrowers and families who buy gold at festive time, the rate in the shop is therefore the global price plus this duty. Individuals who notice that gold silver rates fall in India are looking at a price that has this duty built into it.
How global prices, the rupee and duty set the Indian rate
Gold and silver rates in India mainly follow the global prices, which are quoted in dollars. The Indian rate is arrived at after the dollar price is converted into rupees and the import duty is added on top.
When the global price decreases, the cost of the metal for Indian importers also decreases, and the domestic rates will come down after some time. The same happens when rupee becomes stronger against the dollar, because fewer rupees are needed to buy the same quantity of metal from abroad.
Alongside this, a weaker rupee works in the opposite direction, and it can keep domestic rates steady even when the global price is falling.
Many families look only at the local rate on the board, but the three parts of the price are moving separately, and each of them reaches the jeweller's counter in its own way.
What the 15% duty changes about a fall
The duty is charged as a percentage of the import value of the metal, so it moves along with the base price. When the global price decreases, the amount of duty paid on each unit also decreases and the fall reaches the Indian rate along with it.
A change in the duty rate itself is a separate matter. It is decided by the government and does not depend on the global price or the rupee. A duty cut will reduce domestic rates, and a duty hike will increase them, even when the global price has not moved.
The change was made through customs notifications 15/2026 to 18/2026, dated 12 May 2026, and notification 17/2026 amends the principal notification 57/2000-Customs.
