The government is preparing to further tighten the rules related to the purchase of gold. Under this initiative, preparations are underway to implement more stringent rules regarding tagging of gold within the country. Its purpose is to address the growing concerns regarding misuse of hallmarking and also to ensure the purity and genuineness of gold. According to these rules, the government has made it mandatory to use HUID code for all gold items. Customers are advised to purchase only those jewelery which bears 6 digit Hallmark Unique Identification (HUID) code. This code can also be verified using the ‘BIS CARE’ app. This step will help in stopping the trend of counterfeit goods.
Why is hallmarking important?
Hallmarking is a certification process that confirms the purity of gold jewellery. In India, this process is regulated by the Bureau of Indian Standards (BIS), which ensures that the gold meets certain quality standards. Accurate hallmarking helps buyers make informed decisions and protects them from frauds in the bullion and jewelery sector.
Although hallmarking of gold is mandatory, there have been many cases of misuse and irregularities despite this rule. Some jewelers have been found selling low carat gold or misusing BIS marks, causing financial loss to customers. As a result, there is an urgent need to further strengthen this system to ensure accountability at every stage of the supply chain.
Unique ID cannot be reused
According to the new government rules, the Hallmark Unique Identification (HUID) number given to any gold jewelery can no longer be reused. This means that a unique 6-digit alphanumeric code—such as A2B1C4—that has already been assigned to an item, such as a ring, gold chain, or necklace, cannot be used later on another item of jewelry. Once a specific code is assigned to a particular piece of jewelry, it is forever linked to that item.
purchase rules
PAN card is mandatory for purchases above ₹2 lakh.
For purchases above ₹10 lakh, it is now mandatory to provide Aadhaar card and proof of income in addition to PAN card.
Payment of more than ₹2 lakh cannot be made in cash.
