Is Gold Cheap In Qatar Than India?

Buying gold jewellery from Qatar is cheaper than in India. It is true. But, an important point of consideration is bringing gold from Qatar to India is subject to restrictions & taxes.  The female is allowed 100,000 Indian Rupees and the male can bring Rs 50,000 worth of gold jewellery from abroad.

Is gold cheap in Qatar than India

The regulations on gold from abroad change sometimes every year so advice from tax or goods clearing consultants is mandatory before travel.

Let’s critically analyze the different factors that are important to understand is gold cheaper in Qatar than in India and is it wise to buy jewellery from Qatar and bring it to India?

Tax On Gold Shopping In Qatar

In Qatar, the import duty on gold bullion is so far 0%. However, gold jewellery import is subject to import duty @ 10%.

There is no tax on gold shopping from local gold markets, jewellers, and malls in Qatar. It means there is a 0% value-added tax or general sales tax in Qatar. However, it is predicted that in June 2024, the VAT will be levied at @5%. Businessmen and visitors from abroad must consult the goods clearing agent on duty matters.

Tax Structure Of Gold Shopping In India

In India, the gold is subject to 15% import duty and 3.0% GST. So, whenever you buy gold from jewellers in India, you have to pay a 3% general sales tax (GST). These tax structure percentages are applicable so far up till June 2024.

Since gold is subject to tax, therefore, the gold rate is higher in India.

Custom Regulations On Gold At Doha Airport

The person traveling to Qatar must adhere to the customs rules of the land regarding bringing gold and precious metals jewellery to Qatar.

Any person carrying gold or precious metals or currency above the value of QAR 50,000 is subject to tax. The passengers are essentially required to fill out the declaration form available at the airport and submit it to the customs authorities.

The false declaration may lead to imprisonment or fines.

Custom Rules On Gold At India Airport

The passengers arriving in India carrying gold from Qatar or any other country must know the customs rules.

The female passenger can bring gold jewellery of worth Rs 100,000 (Indian Rupees) or 40 gm gold jewellery. While a male passenger can bring 20 gm of gold jewellery or gold jewellery worth Rs 50,000 (Indian Rupees).

If the value of gold is above the allowed amount (i.e. 100,000 or 50,000), the extra value will be subject to import duty. The passengers must carry the buying receipt of gold to be furnished at the customs authorities counter at the airport.

If any passenger hides the gold jewellery at the airport and customs people on checking the luggage, trace the jewellery. The person will be fined up to 40% and may face legal procedures. 

Currency Exchange Rate

The currency exchange rate affects gold-buying decisions. The currency exchange rate between the Qatari Riyal and the Indian Rupee is 1 QAR = 22.83 INR as of January 2024. Since Indian currency is weak therefore buying in Qatari currency by Indian visitors may feel more expensive.

However, an Indian person working in Qatar & earning in QAR may not feel the price difference and conveniently make the purchasing decision. 

Making Charges

The making charges for jewellery may vary from brand to brand, shop to shop, market to market, and mall to mall. Luxurious shops or malls have higher labor charges due to overhead expenditures.

So whether you are in Qatar or India, the buyer has to do market research. He must know the current gold rate per gram. Bargaining skills will help the buyer to negotiate the prices at good rates.

Somehow, the gold jewellery-making charges are a negotiable factor. In Qatar, these charges are not in percentage but are charged @ QAR 20 to QAR 30 per gram.

Competition In Jewellery Variety In Qatar And India

In both countries, there are a large number of jewellers competing to win customers. But, in Qatar, the rules regarding customer rights are very strict and the government encourages gold trade. Therefore, you will experience, a magnificent variety and the latest fashion gold jewellery in bulk available at Qatar jewellery shops compared to India.

The availability of big variety and tough competition means lower prices and more choices for customers for better buying. Hence, persons visiting the Qatar souk market are easily convinced to buy jewellery from Qatar for their loved ones.

Conclusion

In Qatar, the price of gold jewellery is 12% to 15% less compared with the Indian gold market. The reason is lesser import duties and local taxes. The variety and quality of gold are far more and superior in Qatar due to favorable economic conditions & very strict customer care laws.

The difference comes when the person returns to his homeland and at the airport, customs rules restrict the passenger from carrying a limited worth of gold jewellery from abroad.