Explained: What is hallmarking of gold, and for whom is it now mandatory?
The government, through a notification issued on June 14, 2018, notified two categories—gold jewellery and gold artefacts; and silver jewellery and silver artefacts—under the purview of hallmarking.
Jewellers with annual turnover up to Rs 40 lakh will be exempted from mandatory hallmarking. (File photo)
The government on Tuesday announced the phased implementation of mandatory hallmarking of gold jewellery with effect from June 16. In the first phase, gold hallmarking will be available in only in 256 districts and jewellers having annual turnover above Rs 40 lakh will come under its purview. Which are these districts and how to check the hallmarked jewellery?
What is hallmarking of gold?
The Bureau of Indian Standard (BIS), which operates gold and silver hallmarking scheme in India, defines hallmarking as the “accurate determination and official recording of the proportionate content of precious metal in precious metal articles.” So, it is a “guarantee of purity or fineness” of precious metal articles.
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The government, through a notification issued on June 14, 2018, notified two categories—gold jewellery and gold artefacts; and silver jewellery and silver artefacts—under the purview of hallmarking. So, hallmarking in India is available for jewellery of only two metals—gold and silver.
However, a certain category of jewellery and items will be exempted from the mandatory requirement of hallmarking.
According to the Department of Consumer Affairs, “Export and re-import of jewellery as per Trade Policy of Government of India — Jewellery for international exhibitions, jewellery for government-approved B2B domestic exhibitions will be exempted from mandatory Hallmarking.”
The Ministry of Consumer Affairs, Food and Public Distribution said that watches, fountain pens and special types of jewellery such as Kundan, Polki and Jadau will be exempted from hallmarking.
Why hallmarking has been made mandatory only in 256 districts?
The ministry said that “based on extensive consultations with stakeholders,” it has been decided that hallmarking will be initially be starting with 256 districts of the country which have assaying marking centres.
However, the ministry has given no date from which the next phase of the mandatory hallmarking will begin in the remaining districts.
Which are the 256 districts where the hallmarking of gold jewellery has become mandatory?
Hallmarking of gold jewellery will be mandatory in all seven districts in Delhi. However, in Uttar Pradesh, this facility will be initially available in only 19 districts—Agra, Allahabad, Bareilly, Budaun, Deoria, Ghaziabad, Gorakhpur, Jaunpur, Jhansi, Mathura, Kanpur Nagar, Lucknow, Meerut, Moradabad, Muzaffarnagar, GautamBudh Nagar, Saharanpur, Shahjahanpur and Varanasi.
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In other states, hallmarking of the gold jewellery will be available in the following districts:
Will there be any penalty on jewellers for non-compliance with the hallmarking norm?
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Union Minister for Consumer Affairs, Food and Public Distribution Piyush Goyal has said that “no penalty will be imposed till August 2021”.
Are all jewellers covered under the purview of hallmarking?
No. Jewellers with annual turnover up to Rs 40 lakh will be exempted from mandatory hallmarking.
What are the purity standards for gold and silver under the hallmarking scheme?
As per BIS standards, there are three categories of hallmarking based on purity of gold—22 carat, 18 carat and 14 carat. However, the ministry on 15 June announced that “Gold of Additional carats 20, 23 and 24 will also be allowed for Hallmarking.”
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The ministry further said that jewellers can continue to buy back old gold jewellery without a hallmark from consumers.
What was the need of making hallmarking mandatory?
India is the biggest consumer of gold. However, the level of hallmarked jewellery is very low in the country. According to the ministry, at present, only 30% of Indian gold jewellery is hallmarked.
One of the reasons responsible for low level of hallmarked jewellery is non-availability of sufficient assaying and hallmarking centres (A&HC). There are about only 35,879 jewellers across the country, who are certified by BIS. The number of A&HC is 945.
According to the ministry, one A&H centre can hallmark 1500 articles in a day and the estimated hallmarking capacity of A&H centres per year is 14 crore articles.
Is this a new move?
The government had announced mandatory hallmarking of gold several years back. However, it could not implement the same and kept postponing the dates. In November 2019, the government had announced the mandatory hallmarking of gold jewellery and artefacts across the country from January 15, 2021.
However, later it extended the date of implementation to June 1, 2021, granting more time to jewellers to register themselves with the BIS in the wake of Covid-19 outbreak. In May this year, it extended the deadline by a fortnight.
Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister’s Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers’ Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read More