The Bureau of Indian Standards (BIS) has raised the gold hallmarking fee from Rs. 45 to Rs. 75 per article — a sharp increase of nearly 67% just ahead of India’s festive season. Silver hallmarking fees remain unchanged at Rs. 35.
What Is Hallmarking and Why Does It Matter?
Hallmarking is a purity check for precious metals. A hallmarked gold item carries the BIS mark, purity details, and a six-digit Hallmark Unique Identification (HUID) number. This helps buyers verify the purity of the gold they purchase.
Market Impact: Jewelry Stocks Feel the Pressure
The announcement rippled beyond consumers. Jewelry stocks declined after the fee hike, with Kalyan Jewellers and PC Jeweller shares falling by up to 4%. Lalithaa Jewelry Mart, which recently listed, touched its 5% lower circuit.
The Rs. 75 fee applies to every gold article, regardless of weight. That means a small gold item and a heavy ornament carry the same basic hallmarking charge.
Concerns From the Jewelry Trade
Jewelers send gold articles to BIS-approved testing centers, where pieces are checked before receiving the hallmark and HUID number. The increase has drawn concern from the trade. The All India Gem and Jewelry Domestic Council has asked BIS to review the hike and consult industry members.
The fixed fee could affect small and lightweight pieces most, since the charge represents a larger share of the item’s value. Businesses may need to decide whether to absorb the cost or pass part of it on to customers.
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