What do the brand new hallmarking  guidelines imply for you?

From 16 June, jewellers have been allowed to promote solely hallmarked gold jewelry and artefacts. The authorities has deliberate a phase-wise implementation of obligatory hallmarking below the Hallmarking of Gold Jewellery and Gold Artefacts Order, 2020. Mint explores:

What is hallmarking and what does it price?

Hallmarking is a certification of purity given by assaying and hallmarking centres (AHCs) accredited by the Bureau of Indian Standards (BIS). It signifies that the gold jewelry is of the identical high quality as promised by the jeweller. There are 4 fundamental indicators of hallmarking —the BIS mark denoted by a triangle; the caratage (22K915) displaying purity; the mark of the jeweller; and that of the accredited BIS. Hallmarking of gold jewelry is allowed in 14, 18, 20, 22, 23 and 24 carats. The hallmarking costs are ₹35 plus GST per piece, regardless of the burden of the jewelry.

Can I promote outdated non-hallmarked jewelry?

It has been clarified that jewellers can proceed to purchase non-hallmarked jewelry. If it’s possible, jewellers can get the outdated jewelry hallmarked as it’s, or they will buy such jewelry and soften it and convert it into new jewelry and get it hallmarked earlier than promoting. However, if you’re promoting non-hallmarked jewelry, you want to watch out. Ideally, it is best to attempt to promote it to the identical jeweller from whom you’ve purchased the jewelry. Otherwise, it is best to get the caratage of the jewelry ascertained after which verify with totally different jewellers for the value they’re providing.

View Full ImageSign of purity

Are some jewellers exempted from new guidelines?

Yes, presently, obligatory hallmarking will probably be rolled out in 256 districts of the nation which have AHCs. Jewellers with annual turnover as much as ₹40 lakh don’t fall throughout the purview of obligatory hallmarking. They can, nonetheless, get registration in the event that they want to promote hallmarked jewelry. Also, hallmarking shouldn’t be obligatory for gold jewelry weighing lower than two grams.

Can I verify if the jewelry is real?

There is a malpractice referred to as “dabba hallmarking” whereby certification is finished with out due sampling or verification, or pretend hallmarking. A jeweller can even put the signal of hallmarking by itself by shopping for  the  machine. You can ask for the jeweller’s BIS registration or licence quantity. Jewellers are required to prominently show this licence of their gross sales shops. You can even get the jewelry checked on the AHCs by paying ₹200 as costs. In case of fraud, the jeweller should pay penalty.

Will new guidelines affect loans in opposition to gold?

During the pandemic, many  folks have availed of gold loans. Lenders have been taking non-hallmarked gold as collateral in opposition to the gold mortgage. This will proceed because the Reserve Bank of India (RBI) laws don’t discuss obligatory hallmarking of gold taken as collateral. It says the gold taken as collateral must be valued on the common of the closing value of twenty-two carat gold for the previous 30 days as quoted by the India Bullion and Jewellers Association Ltd. So, debtors of gold loans are unlikely to be impacted.

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