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GST impact: Surge in gold imports from South Korea alarms govt

The surge has in gold imports jumped to $338.6 million during July 1 and August 3 this year

Press Trust of India  |  New Delhi 

Gold imports from South Korea surges
Under the free trade pact between India and South Korea, basic customs duty on gold was eliminated

Worried over multi-fold jump in from South Korea, the is contemplating steps to check the surge in inbound shipments from the country, an official said today.

from South Korea, with which has a 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 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.

Under the free trade pact between and South Korea, basic on gold was eliminated.

Further, the 12.5 per cent countervailing duty on gold has been subsumed in the Goods and Services Tax (GST). Accordingly, the imports now attract only 3 per cent integrated

The official added that similar surge in could be witnessed from other countries with which has free trade pacts.

Currently, attract 10 per cent India is the world's second biggest after The imports mainly take care of demand by the industry.

India has implemented free trade agreements with countries including Japan, Asean and Singapore.

The collections from and IGST from imports post implementation of has almost doubled to Rs 30,000 crore in July.

contributed significantly to this increased collection.

The revenue collected include those on account of customs duty, Integrated-(IGST) from imports, Countervailing Duty (CVD), special addition duty (SAD) and cess collection on imported items.

First Published: Wed, August 09 2017. 19:09 IST