The move to abolish 80:20 rule comes close on the heels of GJF's letter to Prime Minister Narendra Modi last week and persistent efforts with key policymakers.
It also comes as a relief to all those people who are buying gold and jewellery during the wedding season, a statement issued here said.
The government introduced the so-called 80:20 import rule -- tying imports to exports of jewellery -- last year to bring down inbound shipments and narrow the current account deficit that had hit a record.
It has also sought formation of a nodal ministry to represent it.
GJF has also sought clarity on whether circulars prior to August 14, 2013, including those on restrictions on import on a consignment basis (issued in May 2013) still prevail, and if they are, then the latest circular is more restrictive instead of being beneficial to the trade, it said.
"We reiterate our support to the government for its various initiatives to remove trade distortions while stimulating growth in the economy and overall development. GJF also recognises its responsibility of self-regulation."
"We urge the government to initiate the process of creating a comprehensive gold policy. We are hopeful that gold supply will be better now and lakhs of craftsmen will be able to get job work. However, we urge the government to curb smuggling from neighbouring countries by reducing gold import duties.
"GJF has proposed a national debate on this matter because gold is part and parcel of the common man's life since thousands of years," Soni said.