Government restraints gold imports from South Korea

India Infoline News Service | Mumbai | August 26, 2017 13:25 IST

In order to control the rising imports of gold and silver from the South Korea, the government of India has decided to put these items in the restricted category wherein importers are required to take permission from the government before importing these commodities.

Gold ingots
In order to control the rising imports of gold and silver from the South Korea, the government of India has decided to put these items in the restricted category wherein importers are required to take permission from the government before importing these commodities.
 
This move comes in the wake of a surge in gold imports, wherein more than USD 1 billion worth gold was imported from South Korea between July 1-August 21. 
  
The restraint puts by the government is for all forms of gold and silver, including coins and jewellery. 
  
India has a free trade pact with South Korea under which basic customs duty on gold was eliminated. Further, the 12.5% countervailing duty on gold imports has been subsumed in the Goods and Services Tax (GST). Hence, the imports now attract only 3% integrated GST. Apart from the free trade agreement, gold imports attract 10% customs duty. 
  
Currently, there are more than 400 items that are in restricted import list which includes animals, certain seeds, uranium and explosives among others. Imports of gold soared 95% this year in July to USD 2.1 billion. 

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