Hallmarking of gold jewellery and artefacts is mandatory in India. It is an important step towards the implementation of gold purity standardisation. The Ministry of Consumer Affairs has decided on the compulsory hallmarking of gold based on the Consumer Protection Act 1986.
The Bureau of Indian Standards (BIS) introduced Gold Hallmarking Scheme in 2000 and Silver Hallmarking Scheme in 2005. Since 1 April 2023, the government has made 6-digit hallmarking with Hallmark Unique Identification Number (HUID) mandatory for selling or buying gold.
What is hallmarking?
Hallmarking is the process by which the purity of precious metals like gold and silver is determined and certified based on certain standards set by a regulatory body. After the procedure is complete, the hallmark, also known as the mark of quality, is imprinted on the gold object. It indicates its quality and purity.
New Marking Method
BIS has introduced a new method for marking jewellery, which includes a unique identification number, a BIS hallmark , and the purity of the metal. The Indian Government required gold artefacts and jewellery to be hallmarked in 2019. Upon obtaining a hallmark registration certificate, registered jewellers selling through certified sales outlets are permitted to sell precious articles of gold marked with hallmarks.
Importance of gold hallmarking in India
- It assures buyers of the quality of gold/silver jewellery.
- Gold hallmarking builds trust among consumers and creates a strong relationship between buyers and sellers in the market.
- It ensures legal protection against any violation.
- Hallmark registration certificate adds a lot of value to gold jewellery.
How to apply for a hallmark licence for jewellery?
Jewellers who wish to apply for a hallmark license for selling gold jewellery must first obtain hallmark registration from BIS. As per the BIS Hallmarking Scheme guidelines, the regulatory body grants hallmarking registration to gold jewellers/sellers for a specified location.
So, people who wish to sell hallmarked jewellery must obtain Hallmark Registration from BIS for each of their sales outlets. Jewellers who have already received BIS certification can have their gold/silver jewellery hallmarked at BIS Assaying and Hallmarking Centres.
BIS Assaying and Hallmarking Centres are evaluation centres where the purity of gold is examined.
Hallmark registration process
The hallmark registration process has been mentioned as follows:
- Ensure all documents required for registration have been collected in one place.
- Fill up the online application for hallmarking of jewellery.
- Submit the application, documents and the prescribed fees.
- An inspector of BIS will conduct a minute inspection.
- Once a BIS inspector is fully satisfied with the result of their inspection, they will provide a Hallmark Registration Certificate, which will reach the applicant via email.
Hallmarking procedure in India involves three stages of testing. Details are as follows:
- Homogeneity testing – Every item from a given sample is taken for homogeneity testing. These items are checked minutely to evaluate whether they fulfil the regulatory standards set by BIS.
- Purity testing – This is an important step and probably the most difficult one. Randomly, one of 50 similar items is chosen for purity testing. First, a preliminary test is performed on the surface of each of the items. Then, smaller samples are collected from every item for detailed examination. Finally, the tests are intensified to examine the gold’s purity, value and fineness.
- Individual item marking – Marking every item individually is the final step. Laser and press are used to imprint the hallmark on the gold depending on the result of the test. The jewellery may be hand-marked as well if the case requires it.
Documents required for hallmark registration
Check the list of documents required for hallmark registration:
Proof of a company/firm establishment
- Registered partnership deed (if the applicant is a partnership firm)
- Registration certificate issued by ROC and MoA (Memorandum of Association)
- CA certificate (if the applicant is a proprietorship firm)
Address proof of company or firm
- GST registration certificate
- Income tax assessment order
- The sale or lease deed agreement
- Rent agreement with previous rent receipts
- Latest receipt of property tax
- Registration certificate issued by a state government
Proof of annual turnover
- Copy of GST returns of the previous financial year
- In case the firm is new, an undertaking should be collected from the firm with an estimate of expected turnover and assurance to submit GSTR.
ID proof of the Signatory
- Aadhaar-based verification or e-signature
- Copy of PAN card, Aadhaar card, passport, driving license or photo ID card issued by a Gazetted Officer on an official letterhead
Hallmark license fees
The Government of India has provided guidelines for setting Hallmark License Fees, known as Registration Fees. It depends on the turnover in place population. Here’s a table depicting hallmark licensing fees in India:
| Business turnover | Application fee | Registration fee |
| Up to Rs. 5 crore | Rs. 2,000 | Rs. 7,500 |
| From Rs. 5 crore to Rs. 25 crore | Rs. 2,000 | Rs. 15,000 |
| From Rs. 25 crore to Rs. 100 crore | Rs. 2,000 | Rs. 40,000 |
| Above Rs. 100 crore | Rs. 2,000 | Rs. 80,000 |
Benefits of hallmarked gold
- Mandatory hallmarking of gold jewellery provides much-needed assurance to buyers about their quality.
- It ensures higher exchange or resale value because quality standardisation always leads to price parity. This increases the trading of gold articles.
- Buyers receive the necessary legal protection. Hallmarked gold/silver ensures they don’t get caught in fraud.
- By selling hallmarked jewellery, retailers lay the base of sustainable business growth.
FAQs
What is Hallmark Registration?
Hallmark Registration refers to the process by which jewelry, gold, and silver items are certified for their purity and authenticity by authorized agencies. The hallmark indicates the metal’s purity, composition, and other relevant details, providing assurance to consumers about the quality of the product.
Why is Hallmark Registration important?
Hallmark Registration is important for ensuring consumer protection and confidence in the quality of precious metal products. It helps prevent fraud, misrepresentation, and the sale of counterfeit items by providing a standardized certification of purity and authenticity.
Who conducts Hallmark Registration?
Hallmark Registration is typically conducted by government-approved assay offices or hallmarking centers. These agencies are responsible for testing and certifying the purity of precious metal items according to established standards and issuing hallmark stamps or marks indicating compliance.
Practice area's of B K Goyal & Co LLP
Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online
Company Registration Services in major cities of India
Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow
Complete CA Services
RERA Services
Most read resources
tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password | internal audit applicability | preliminiary expenses | mAadhar | e shram card | 194r | ec tamilnadu | 194a of income tax act | 80ddb | aaple sarkar portal | epf activation | scrap business | brsr | section 135 of companies act 2013 | depreciation on computer | section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013 | rtps | patta chitta