Kannada actress Ranya Rao was recently arrested at Kempegowda International Airport in Bengaluru for allegedly smuggling 14.2 kg of gold. This incident has sparked widespread discussions about gold prices in Dubai and the regulations surrounding gold imports into India.
Why Is Gold Cheaper in Dubai?
Compared to India, gold prices in Dubai are significantly lower. The key reasons behind this price difference include the absence of GST on jewelry and lower manufacturing charges in Dubai. As a result, many people prefer buying gold from Dubai and bringing it to India.
Rules for Bringing Gold into India
The Central Board of Indirect Taxes and Customs (CBIC) has strict regulations on gold imports, which must be followed to avoid legal consequences, as seen in Ranya Rao’s case. Individuals bringing gold from foreign countries must pay import duty, which is currently set at 6%. In an attempt to evade this tax, many resort to smuggling gold into India.
Customs Rules for Gold Import from Dubai
According to CBIC guidelines, individuals who have stayed in Dubai for more than six months (as per the 1967 Passport Act) and have paid customs duty can bring up to 1 kg of gold in their baggage. If they wish to carry more than this limit, they must provide valid proof of tax payment; otherwise, they could face severe legal consequences.
For passengers who do not pay customs duty, the permissible gold limit is as follows:
The gold brought under these limits must be in the form of bars or coins. For children, however, gold in the form of jewelry or gifts is permitted. During customs verification, individuals must provide complete purchase details, and in the case of minors, their parents or guardians must present a valid ID card.
Gold Prices in India vs. Dubai
As of March 10, the gold rates are as follows:
The price difference between Dubai and India is nearly ₹3,000 per 10 grams, making Dubai a preferred destination for gold purchases. However, buyers must ensure compliance with import regulations to avoid legal trouble.
With incidents like Ranya Rao’s arrest, authorities are tightening surveillance on gold smuggling activities. Those traveling from Dubai with gold should stay informed about the latest customs regulations to avoid any legal complications.