South Korean gold import: Govt revenue loss to cross Rs 700 cr by month-end

Traders appear to have found a lacuna that allows them to dodge applicable duties

Zero-duty gold imports from South Korea, under the free trade agreement (FTA) route have crossed 15 tonnes since the rollout of goods and services tax (GST) on July 1, and another 10 tonnes are expected to come by the month's end, according to informed sources. As a result, the government has already lost Rs 450 crore in revenue and, by the month's end, the total revenue loss is estimated to cross Rs 700 crore. 

This is because while only finished products for the end consumers' use are allowed under the FTA, gold imported under the guise of coins is converted