Silver Import Duty in India 2026: Rates, Carrying Limits and Customs Rules

Imports play an important role in meeting India's demand for silver, making customs duties and import regulations relevant for travellers, bullion buyers, investors, and businesses alike. Changes introduced during May 2026 affected both import costs and the regulatory requirements applicable to certain categories of silver products.

This guide explains the current silver customs duty 2026 framework, including duty components, passenger carrying provisions, DGFT licensing requirements, HS code classifications, and the potential implications of these policy changes for different categories of importers.

Current Silver Import Duty Rate in India (May 2026)

The revised silver import duty became effective on May 13, 2026, following changes announced by the Central Government through customs notifications. The increase applies to silver bullion imported into India and significantly changes the overall landed cost of imported silver.

The revised duty structure is shown below.

Before the revision, the combined effective customs burden was approximately 9.2%. The increase almost doubled the overall import cost on silver bullion.

According to various government notifications and policy explanations issued during the period, the revised duty framework was introduced amid concerns regarding rising imports of precious metals and their potential impact on external sector indicators.

Duty Comparison Before and After the May 2026 Revision

Illustrative Duty Calculation

Suppose an importer brings 1 kilogram of silver bullion with an assessable customs value of ₹1,20,000.

The exact IGST calculation depends on customs valuation provisions and applicable notifications.

Note: The above illustration is intended only to explain how customs duties are calculated. The final duty payable depends on the assessable value determined by Customs, applicable notifications, exchange rates notified by CBIC, and any subsequent amendments.

Duty on Silver Jewellery vs Silver Bullion

The customs treatment differs depending on the type of silver product being imported.

Silver bullion, including unwrought silver, semi-manufactured silver, and silver powder, is generally classified under HS Code 7106. Imports under this category are subject to the applicable Basic Customs Duty, AIDC, and IGST in accordance with prevailing customs notifications.

Finished silver jewellery generally falls under HSN 7113. Customs duties applicable to jewellery are governed separately and are designed with consideration for domestic manufacturing and value addition. Because classification, purity, and product type influence the applicable duty, importers should verify the correct tariff heading before importing silver products.

Using the correct HS code is essential, as customs assessment, documentation requirements, and import conditions depend on the classification adopted at the time of clearance.

Note: Customs classifications and applicable duties should always be verified with the latest CBIC Customs Tariff notifications, DGFT notifications, and the Customs Tariff Act before importing silver or silver jewellery.

How Much Silver Can You Legally Carry into India?

The silver carrying limit India rules are different for passengers bringing silver for personal use and businesses importing silver commercially. Under the applicable baggage provisions, eligible passengers meeting prescribed conditions may be permitted to carry silver subject to specified quantity limits, payment of applicable customs duty, and compliance with Customs requirements. Travellers should verify the latest baggage rules before travel.

All silver above the applicable duty-free allowance must be declared to Customs on arrival. Failure to declare dutiable goods can result in penalties, confiscation, or other action under the Customs Act, 1962.

The broad passenger rules are summarised below.

These provisions relate only to passengers carrying silver into India through airports, seaports, or land customs stations. They are separate from the licensing requirements applicable to commercial imports.

Note: Passenger baggage rules are subject to Customs notifications and may change. Travellers should verify the latest baggage regulations before travel.

Silver Import Licensing: What the Restricted Category Means

Another major policy change came into effect on May 17, 2026, when the Directorate General of Foreign Trade (DGFT) shifted silver bars containing 99% or more purity, along with certain other silver bars, from the “Free” category to the “Restricted” category under India’s import policy.

For commercial importers, this means:

• Imports require a DGFT licence before eligible silver bars can be imported.
• The licensing requirement primarily applies to commercial imports, not to passenger baggage carried under Customs rules.
• Passenger carrying limits and customs duty provisions remain separate from DGFT licensing requirements.

The policy change followed a substantial increase in India's silver imports during FY 2025–26, which was cited in public reporting and policy discussions surrounding the revised import framework.

Importers should review the latest DGFT notifications before placing overseas purchase orders, as licensing conditions and product coverage may change over time.

How the Duty Hike Affects Silver Prices and Silver-Backed Loans

Import duties form one of several factors that influence the landed cost of imported bullion. Changes in customs duty may affect domestic pricing dynamics, although the actual market price of silver also depends on global bullion prices, currency movements, domestic demand, supply conditions, and broader market sentiment.

Government trade data also indicated a sharp decline in silver imports immediately after the policy changes. Imports reportedly fell by around 81.6% in May 2026, from approximately ₹3,400 crore in April to about ₹640 crore in May, reflecting the combined impact of higher customs duties and tighter import controls.

These developments may also influence silver-backed loans. Changes in silver prices may influence the valuation of silver offered as collateral for financing arrangements. However, collateral valuation alone does not determine lending outcomes, which remain subject to lender assessment, applicable regulations, documentation requirements, and internal policies.

For borrowers, fluctuations in silver prices can change the assessed value of pledged silver over time. For lenders, prudent valuation and periodic reassessment remain important risk-management practices. Anyone considering a silver-backed loan should review the lender’s eligibility criteria, valuation process, applicable charges, repayment terms, and regulatory disclosures before proceeding.

Note: Silver prices are market-linked and can change daily. Loan eligibility, sanctioned amount, LTV ratio, approval, and disbursal depend on the lender’s internal policies, applicable regulations, documentation, and valuation of the pledged asset.

Conclusion

Changes introduced during May 2026 reshaped India's silver import framework by increasing customs duties and introducing additional restrictions for certain categories of commercial imports. As a result, travellers, bullion buyers, businesses, and investors may need to pay closer attention to customs rules, duty structures, baggage provisions, and licensing requirements when dealing with imported silver.

This article reviewed the current silver import duty in India structure, passenger carrying provisions, HS code classifications, DGFT restrictions, and the broader implications of these policy developments. Because customs regulations and import policies can change through future government notifications, referring to the latest CBIC and DGFT guidance remains important before importing or carrying silver into India.

Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more