Gem and Jewellery Domestic Council Warns of Increased Fraud Risk as Hallmarking Charges Rise
Gold hallmarking has become more expensive, raising concerns about potential fraud in the jewelry market. The increase in hallmarking charges has prompted fears that some jewelers may resort to using counterfeit hallmarking stamps. This issue is particularly pressing in tier-2, tier-3, and tier-4 cities, where consumer awareness about hallmarking remains low.
Rising Costs and Consumer Awareness
Consumers are now responsible for the higher hallmarking costs when purchasing jewelry. However, many buyers are unaware that they can verify the Hallmark Unique Identification (HUID) number using the Bureau of Indian Standards’ Care mobile application. Rajesh Rokde, chairman of the All-India Gem and Jewellery Domestic Council (GJC), stated that awareness of the BIS app is limited to about 10% of the country’s 800 districts. This lack of awareness leaves consumers vulnerable as fraudsters develop more sophisticated methods to replicate hallmarking safeguards.
The GJC has approached consumer affairs minister Pralhad Joshi and the BIS, requesting a return to the previous hallmarking fee of Rs 45 per article, which has now increased to Rs 75. This 66.67% hike has significantly added to the compliance burden in a mandatory system. The council has also questioned whether the increased fee has led to improved consumer protection.
Hallmarking Process and Compliance Burden
BIS hallmarking is a system that certifies the purity of precious metal articles. A hallmarked item features three key identifiers: the BIS logo, the karat or millesimal fineness, and a six-digit alphanumeric Hallmark Unique Identification (HUID) number. To sell hallmarked jewelry, jewelers must first register with the Bureau of Indian Standards through an online process that incurs no fees.
Once registered, jewelers send their jewelry to a BIS-recognized Assaying & Hallmarking (A&H) Centre for testing. If the articles meet the required standards, the A&H Centre applies the hallmark. However, the GJC has noted that the turnaround time for hallmarking has increased from around six hours to 24-36 hours, tying up jewellers’ working capital for longer periods and raising their financing costs. The hallmarking fee for silver articles remains unchanged at Rs 35. The revised rates were notified through the BIS (Hallmarking) Amendment Regulations, 2026, dated September 14, 2026.
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