New Delhi, May 14 (PTI) A day after significantly increasing the import duty on precious metals, the government on Thursday imposed a limit of 100 kg on gold imports under the Advance Authorisation scheme, which allows jewellery exporters to import raw or input materials at zero duty.

The government has tighetend conditons for the issuance and monitoring of advance authorisation for import of gold. Earlier, there was no limit on gold imports under the scheme.

The Advance Authorisation scheme allows the duty-free import of inputs that are incorporated into an export product. In addition to any inputs, packaging material, fuel, oil, and catalyst that are consumed or utilised in the process of production of export product, are also allowed.

"AA for import of gold shall be issued, subject to a maximum remissible quantity of 100 kilograms," the DGFT said in a public notice.

It added that in case of application for Advance Authorisation by a first-time applicant, a mandatory physical inspection of the applicant's manufacturing facility will be undertaken to verify the existence, capacity and operational status of the unit.

"Any subsequent AA for the import of gold, shall be considered for issuance only upon fulfilment of at least 50 per cent of the export obligation...," it said, adding that the AA holder will have to submit a fortnightly performance report, which should be duly certified by an independent chartered accountant certifying gold imports and exports undertaken.

Further, the concerned regional authority of the directorate will submit a monthly report to the DGFT containing details regarding the issuance of AA.

The government on Wednesday sharply hiked the import duty on gold and silver to 15 per cent to discourage purchase and trim non-essential imports in the backdrop of a ballooning import bill amid the West Asia crisis.

Effective May 13, import duty on gold and silver has been increased to 15 per cent from 6 per cent, and that on platinum has been raised to 15.4 per cent from 6.4 per cent. Consequential changes have also been made to other items such as gold/silver dore, coins, findings, etc.

Gold and silver imports jumped 26.7 per cent year-on-year to USD 102.5 billion in FY2025-26, with their share in total imports rising to 14 per cent from 11.8 per cent in 2024-25.

The duty hike came within days of Prime Minister Narendra Modi's clarion call for curbs on gold purchases, along with other austerity measures to reduce avoidable foreign exchange expenditure.

Gold imports in India, the world's second-biggest gold consumer after China, are driven by the jewellery industry demand. Such imports involve a substantial outflow of foreign exchange.

The rupee hit a record low of 95.75 against the US dollar on Tuesday, but recovered some lost ground on Wednesday after the gold import duty was announced.

Through the duty hikes carried out on Wednesday, basic customs duty on gold has been doubled to 10 per cent, while agriculture infrastructure and development cess (AIDC) has been hiked fivefold from 1 per cent to 5 per cent. This brings the effective import duty on gold and silver to 15 per cent.

Besides, importers have to pay a 3 per cent Integrated GST (IGST), which takes the total duty to 18.45 per cent from 9.18 per cent earlier.

India's gold imports surged more than 24 per cent to an all-time high of USD 71.98 billion in 2025-26. In volume terms, however, shipments dipped 4.76 per cent to 721.03 tonnes in 2025-26. PTI RR MR

Advance Authorisation scheme now caps gold imports, with stricter verification, export obligation conditions, and reporting requirements. Gold imports under the Advance Authorisation scheme have been capped at a maximum remissible quantity of 100 kilograms. The scheme continues to permit duty-free import of inputs used in export production, including raw materials and other consumables, but the issuance of authorisation for gold imports is now subject to tighter control. First-time applicants face mandatory physical inspection, subsequent authorisations depend on 50 per cent export obligation fulfilment, and holders must file fortnightly certified performance reports.