Gold buyers have received an important update ahead of the upcoming festive and wedding season. The Bureau of Indian Standards (BIS) has increased the hallmarking fee for gold jewellery by 67%. Under the revised charges, jewellers will now have to pay a higher fee for hallmarking each gold jewellery article.
However, the increase does not necessarily mean that customers will have to pay an additional ₹30 directly for every piece of jewellery they purchase. The hallmarking fee is paid by jewellers. At the same time, the higher cost could increase the overall operating expenses of jewellery businesses, and jewellers may decide how to absorb or adjust this additional expense.
Let's understand what has changed, how much the fee has increased, and what it could mean for jewellers and customers.
BIS Changes Gold Hallmarking Fees
Hallmarking plays an important role in identifying the purity of gold and silver jewellery. The Bureau of Indian Standards, or BIS, sets standards under which hallmarking is carried out.
Under the revised fee structure, the hallmarking charge for gold jewellery has been increased from ₹45 to ₹75 per article.
This means jewellers will now pay ₹30 more per gold jewellery article for hallmarking. Compared with the earlier ₹45 charge, this represents an increase of approximately 67%.
The hallmarking fee is charged per article rather than according to the weight of the jewellery. Therefore, whether the jewellery is a ring, chain, bracelet or another item, the applicable hallmarking charge is based on the article.
No Change in Silver Hallmarking Fee
While the hallmarking fee for gold jewellery has been increased, there has been no corresponding change in the fee for silver jewellery.
The hallmarking charge for silver remains at ₹35 per article.
Therefore, the latest revision primarily affects the hallmarking cost associated with gold jewellery.
Will Customers Have to Pay ₹30 More for Gold Jewellery?
This is one of the biggest questions following the fee revision.
The answer is not necessarily.
The hallmarking charge is paid by the jeweller. Therefore, the customer does not automatically have to pay an additional ₹30 separately for every gold jewellery article.
However, hallmarking is a business expense for jewellers. With the cost increasing from ₹45 to ₹75 per article, jewellers who process a large number of jewellery pieces could see their overall costs rise.
A jeweller may absorb this additional cost within their existing margins or adjust their pricing structure. Therefore, the actual impact on customers can vary from one jeweller to another.
It would not be accurate to say that the price of every gold jewellery item will automatically increase by ₹30 because of the new hallmarking fee.
Why Is Hallmarking Important for Jewellery?
Hallmarking is important because customers generally cannot determine the exact purity of gold simply by looking at a jewellery item.
The hallmarking system provides information about the purity of the precious metal and gives customers an additional level of confidence when purchasing jewellery.
When buying gold jewellery, customers should carefully check the BIS hallmark, purity or fineness mark and HUID.
The HUID can also be verified through the official BIS system, including the BIS CARE App.
This can help customers confirm information associated with a hallmarked jewellery article before completing their purchase.
What Is the HUID Number?
HUID stands for Hallmark Unique Identification. It is a unique alphanumeric code associated with a hallmarked jewellery article.
The HUID is an important part of the current hallmarking system because it allows customers to verify information related to the hallmarked article through BIS's official verification mechanism.
Customers should make it a habit to check the HUID when purchasing hallmarked gold jewellery and verify it through the official BIS platform.
They should also ask the jeweller for a proper invoice and carefully check the details mentioned on it.
Understanding Gold Purity and Fineness
Gold purity is commonly expressed in karats, while the fineness number indicates the proportion of pure gold in the jewellery.
Some commonly used fineness standards include:
14 Karat: 585
18 Karat: 750
20 Karat: 833
22 Karat: 916
24 Karat: 995
For example, 22-karat gold jewellery is commonly associated with a fineness of 916.
Customers should therefore check the relevant purity or fineness mark when buying gold jewellery rather than relying only on the appearance or claims made at the time of purchase.
Why the Timing Matters Before the Festive and Wedding Season
The change comes at an important time because India is approaching the festive season, followed by a period when jewellery purchases traditionally become important for weddings and other occasions.
For jewellers handling large volumes of jewellery, even a relatively small increase in the hallmarking charge per article can add to their overall operating costs.
For example, if a jeweller gets hundreds or thousands of jewellery articles hallmarked, the additional ₹30 per article can accumulate into a significant amount.
However, how much of this additional cost is ultimately reflected in customer prices will depend on individual business practices and pricing structures.
What About UPI Charges for Jewellery Transactions?
Digital payments are also an important issue for jewellery businesses because jewellery purchases often involve high-value transactions.
There have been discussions and changes around payment-related charges and merchant fees, but customers should not assume that every UPI transaction automatically attracts an additional fee.
The applicable charges can depend on the payment method, account type, service provider and applicable rules.
Therefore, jewellers and customers should check the latest information from their bank or payment service provider rather than relying on general claims about a fixed UPI charge on every high-value transaction.
What Should Customers Check Before Buying Gold?
The increase in hallmarking fees does not change the basic precautions customers should take when purchasing gold jewellery.
Before making a purchase, customers should:
Look for the BIS hallmark on the jewellery.
Check the purity or fineness number.
Verify the HUID through the official BIS verification system.
Ask for a proper invoice from the jeweller.
Check the weight and purity mentioned on the bill.
Understand the making charges and other applicable costs before completing the purchase.
Compare the total price rather than focusing only on the gold rate.
These steps can help customers make a more informed purchase and maintain proper documentation for future resale or exchange.
Will the Hallmarking Fee Increase Make Gold More Expensive?
The increase in the hallmarking fee from ₹45 to ₹75 does increase the cost incurred by jewellers. However, it should not be interpreted as a direct ₹30 increase in the price of every gold jewellery item.
The final price paid by a customer depends on several factors, including the prevailing gold price, weight, purity, making charges, taxes and other applicable costs.
Hallmarking is only one component of the overall cost structure.
Therefore, customers should not make a purchasing decision based solely on the increase in hallmarking fees. Instead, they should look at the complete price breakdown and verify the purity and hallmark details before purchasing.
Conclusion
The 67% increase in gold hallmarking fees means that the hallmarking charge for gold jewellery has risen from ₹45 to ₹75 per article. Meanwhile, the hallmarking fee for silver jewellery remains at ₹35 per article.
The revised fee is paid by jewellers, so customers will not automatically have to pay an additional ₹30 for every jewellery item. However, the higher hallmarking cost could increase the operating expenses of jewellery businesses, and its eventual impact on customers may depend on how individual jewellers manage the additional cost.
For gold buyers, the most important step remains checking the BIS hallmark, purity/fineness mark, HUID and proper invoice. With the festive and wedding season approaching, these checks can help customers understand exactly what they are paying for and make a more informed gold jewellery purchase.
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