Let’s break it down simply. At a point of time, International quoted price is $5060/oz
Theoretical price from the international quote was:
👉 ~₹14,958 / gram (pure conversion from $5060/oz @ 91.94)
But you’re seeing:
👉 ₹17,217 / gram in India
That’s a difference of roughly ₹2,260 per gram (~15%).
Here’s where that extra comes from 👇
This kind of gap is very normal for gold prices in India.
✅ 1. Import Duty (biggest factor)
India charges ~15% total import duty on gold (basic customs + agriculture cess).
That alone adds:
₹14,958 × 15% ≈ ₹2,240
You’re already almost at your observed difference just from this.
✅ 2. GST (3%)
After import duty, 3% GST is applied:
This adds another ~₹450 per gram.
(Some platforms show prices including GST, some exclude it.)
✅ 3. Premiums + logistics
On top of taxes:
- Bank / bullion dealer premium
- Transport + insurance
- Hedging costs
- Inventory risk
Usually adds ₹100–300/g.
✅ 4. Purity assumptions
International price = 24K (99.99%)
Indian listed prices may include:
- 24K with GST
- or slightly adjusted purity benchmarks
Small but noticeable impact.
📌 In short
Your math is correct.
The jump from ₹14,958 → ₹17,217 is mainly:
🔴 Import Duty (~15%)
🔴 GST (3%)
🔴 Dealer premiums
This is why Indian gold is structurally more expensive than global spot.
Quick formula for future:
A realistic Indian gold estimate:
International INR price × 1.18 to 1.20
(18–20% covers duty + GST + premiums)
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