Gold imports from South Korea, with which India has a free trade agreement since January 2010, has jumped to $338.6 million during July 1 and August 3 this year. The import in 2016-17 was 470.46 million.
"We have lots of mechanisms in place to control this surge like we can stipulate that the gold which is imported should be used for designated purpose like for export only.
"Safeguard duty can also be imposed but we have to plug the loophole before the onset of the festive season," the finance ministry official said.
India has implemented free trade agreements with countries including Japan, Asean and Singapore.
Gold imports contributed significantly to this increased collection.
The revenue collected include those on account of customs duty, Integrated-GST (IGST) from imports, Countervailing Duty (CVD), special addition duty (SAD) and cess collection on imported items.