Gold Import Limit Set at 100 KG After Duty Hike

The Central Government has imposed a new limit on gold imports under the Advance Authorization (AA) Scheme. According to the Directorate General of Foreign Trade (DGFT), companies will now be allowed to import a maximum of 100 kilograms of gold under this scheme.

The Advance Authorization Scheme gives manufacturers exemption from customs duty on imported goods used for exports. Earlier, there was no major limit on importing gold under this scheme, allowing companies to bring in large quantities without paying import duty.

However, after the recent increase in gold import duty, the government felt that some traders and businesses might misuse the scheme to avoid higher taxes. To prevent such misuse, the Centre has now introduced the 100 KG import cap.

Officials believe this move will help regulate gold imports more effectively and reduce possible tax evasion. The decision is also expected to support better monitoring of gold trade activities in the country.

The new rule has already attracted attention from jewellery manufacturers and gold traders, as it could impact the way businesses import and use gold in the future.