In comparison to international gold prices, gold in the Indian subcontinent was selling at huge discounts on Friday owing to weak demand as well as rise in imports of the precious yellow metal from South Korea.
Before the roll out of GST, an excise duty at the rate of 12.5% was applicable on god import from nations with which India had signed an Foreign Trade Agreement or FTA including South Korea.
The traders in India are likely to capitalize on the new tax changes that do not levy any customs on the import of gold and import as much as 25 tonnes of gold from South Korea in the month of July and August.