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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