Hallmarking on gold jewellery and related items is set to become mandatory from April 1, 2023. The government has said that all gold jewellery and artefacts sold after March 31 will have to carry a Hallmark Unique Identification Number (HUID). The move is aimed to ensure quality standards, and bring the Indian jewellery industry in line with global standards.

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This means the sale of old hallmarked jewellery with four logos without a HUID (Hallmark Unique Identification) number will not be allowed from the new financial year. It may be noted that prior to the implementation of the six-digit HUID number, hallmarking of gold jewellery consisted of four marks - BIS logo, purity of the article as well as the logo of the jeweller and Assaying and Hallmarking Centre.

Till now, the old hallmarked jewellery with four marks without HUID was also permitted to be sold by the jewellers along with the six-digit HUID mark.

About gold hallmarking

Gold hallmarking is a purity certification of the precious metal. India uses the Bureau of Indian Standards (BIS) hallmark system for certifying gold and silver jewellery to establish the purity of the metal.

Notably, BIS is the body responsible for hallmarking jewellery. BIS has had a hallmarking scheme in place since the 2000s.

Hallmark lends credibility to the purity of the jewellery. Moreover, it obligates manufacturers to maintain the legal standards of fineness and purity.

The mandate

In June 2021, BIS said that hallmarking of gold jewellery and artefacts is important. This was done so as to enhance the credibility of the jewellery and customer satisfaction through third-party assurance for the marked purity of gold, and consumer protection.

Starting from April 1, 2023, jewellers will be able to sell only 14, 18 and 22 carats of gold jewellery and other items that have been certified by the BIS for their purity.

Penalty for default

As per the new rules, if jewellery or an artefact made of 14, 18, or 22-carat gold is sold without the BIS hallmark, the jeweller could be penalised five times the cost of the object or imprisoned for up to one year.

Customers' protection

The government has made this mandatory to protect consumers from fraud and ensure uniform standards of gold quality across the country. According to BIS, there are about 940 assaying and hallmarking centres in India, out of which 256 are located in districts where hallmarking will be mandatory in the first phase.