After GST implementation two Indian entities import 10000 kg of South Korean Gold
MUMBAI (Scrap Register): After the implementation of Goods and Service Tax (GST) in India, only two business groups have together imported close to 10000 kg of Gold from India's free trade partner of South Korea since July.
The imports were taken by the government with surprise, the imports were in the form of coins and medallions, the government is now examining ways to impose interim restrictions.
Of the total of 11000 kg imported from July 1 to August 9, around 90 percent has been brought in by two business groups which have taken advantage of the favorable reduction in tax incidence under GST, routing their imports through Korea.
“Only two players have imported almost all the gold. The free trade pact has been misused. Some restrictions will be put in place soon. Beside, a permanent solution is also being deliberated, to ensure such cases do not come up,” as per the government.
One of the imported entity is a ace in the jewellery business, with a bullion refinery in Hardwar, believes to have imported around 7000 kg. The other is a Delhi based trader in the bullion business for over a generation, having imported around 3000 kg.