The government has recently imposed restrictions on imports of the precious metal from South Korea on account of jump in gold imports from that country
Cumulative exports during April-August of 2017-18 rose by 8.57 percent to $118.57 billion
Under GST, "3 percent Integrated-GST is payable on all imports of precious metals in addition to the basic customs duty. IGST paid can be taken as input tax credit by the banks."
The Customs authorities have decided to examine thoroughly the consignments of gold coming from South Korea to ensure that there is no violation of provisions of free trade agreement
India, the world's second biggest gold consumer after #China, imposes a 10 percent import duty on gold
Cumulative export during April-July of 2017-18 rose by 8.91 percent to $94.75 billion while import increased by 28.30 percent to $146.25 billion, leaving a trade deficit of $51.5 billion.
Gold imports from South Korea, with which India has a free trade agreement since January 2010, has jumped to $338.6 million during 1 July and 3 August this year. The import in 2016-17 was $70.46 million.
Import rose by 19 percent to US $36.52 billion in June from US $30.68 billion in the year-ago month due to rise in inward shipments of oil and gold.
For the first half of the year, imports rose to 514 tonnes, up 161 percent from a year ago.
Surge in the imports last month contributed to the widening of trade deficit to a 30-month high of US $13.84 billion as against US $6.27 billion in May 2016
Strong performance by petroleum, engineering, textiles and gems and jewellery sectors propelled the country's exports growth during the month
Launch of GST and restrictions on refiners' ability to import unrefined gold will take their toll.
India is the world's second biggest gold consumer after China. The imports mainly take care of demand by the jewellery industry.
A huge spike in gold imports pushed the trade deficit to US $10.43 billion during the month under review from US $4.4 billion a year ago.
The trade deficit widened as well to USD 8.89 billion as imports expanded.
the pressure related to the financing of a larger current account deficit would abate with the resumption of non-resident Indian (NRI) deposits in 2017-18
India needs to make its products more competitive for it to enhance exports in an increasingly shrinking world market
Imports widened to $31.95 billion in January, up 10.7 percent from the same month last fiscal
WGC said gold trade will become more transparent with introduction of GST, mandatory hallmarking and a massive push by organised jewellers to promote non-cash payments
The estimated 100 tons of gold import in November is the most for this year and accounts for a fifth of the 500 tonne of this precious metal imported in the current year so far