Gold has always held a special place in Indian culture, not just as a symbol of wealth but also as an essential part of traditions and celebrations. To ensure the purity and quality of gold jewellery and artefacts, hallmarking has become a crucial process in India. The Bureau of Indian Standards (BIS) has made it mandatory for jewellers to obtain hallmark registration. This article provides a detailed guide on hallmark registration, its process, importance, and the benefits of hallmarking gold jewellery in India.
What is Hallmarking?
Hallmarking is a certification process that determines and certifies the purity of precious metals like gold and silver. Once the process is completed, the hallmark, which serves as a mark of quality, is imprinted on the gold item. This hallmark assures buyers of the gold’s authenticity and purity.
The Bureau of Indian Standards (BIS) introduced the Gold Hallmarking Scheme in 2000 and the Silver Hallmarking Scheme in 2005. Effective from April 1, 2023, hallmarking with a unique 6-digit Hallmark Unique Identification Number (HUID) has become mandatory for buying and selling gold in India.
Importance of Hallmarking in India
1. Assures Quality: Hallmarking assures buyers about the quality and purity of the gold jewellery or artefacts they purchase.
2. Builds Consumer Trust: The hallmark creates trust between buyers and sellers, strengthening the relationship and increasing confidence in the jewellery market.
3. Legal Protection: Buyers are legally protected against any fraudulent practices related to the quality of gold.
4. Value Addition: A hallmark registration certificate adds significant value to gold jewellery, making it a reliable asset for exchange or resale.
5. Strengthens the Industry: Mandatory hallmarking ensures standardisation, which benefits the entire gold jewellery industry by building customer trust and encouraging sustainable business practices.
How to Apply for a Hallmark Licence for Jewellery?
Jewellers who want to sell hallmarked jewellery must obtain hallmark registration from BIS. The registration is granted for specific sales outlets, meaning each outlet must have its own hallmark registration. Jewellers with BIS certification can get their gold or silver jewellery hallmarked at BIS Assaying and Hallmarking Centres.
Steps for Hallmark Registration
1. Document Collection: Gather all necessary documents required for hallmark registration (detailed below).
2. Online Application: Fill out the online application form for hallmarking through the BIS portal.
3. Submission of Documents and Fees: Submit the application along with the required documents and the prescribed registration fees.
4. Inspection by BIS: A BIS inspector will conduct a thorough inspection of the premises and processes.
5. Approval and Certificate Issuance: Upon successful inspection, the BIS will issue the Hallmark Registration Certificate to the applicant via email.
Hallmarking Procedure
The hallmarking process in India involves three critical stages:
1. Homogeneity Testing:
-Each item from a sample batch is tested for homogeneity to ensure it meets BIS standards.
2. Purity Testing:
-Random samples are selected for detailed purity testing. Smaller samples are taken from the jewellery, and rigorous tests are conducted to evaluate the gold's purity, value, and fineness.
3. Individual Item Marking:
-The final step involves marking each gold item individually using laser or press techniques. Hand-marking is also an option if required.
Documents Required for Hallmark Registration
To apply for hallmark registration, the following documents are needed:
1. Proof of Company/Firm Establishment:
-Registered partnership deed (for partnership firms)
-Registration certificate issued by ROC and MoA (for companies like Private Limited Company, Public Limited Company, One Person Company, etc.)
-CA certificate (for proprietorship firms)
2. Address Proof of Company/Firm:
-GST Registration Certificate
-Income tax assessment order
-Sale/lease deed agreement or rent agreement with previous rent receipts
-Latest property tax receipt
-Registration certificate issued by a state government
3. Proof of Annual Turnover:
-GST Returns of the previous financial year
-For new firms, an undertaking with an expected turnover estimate and assurance to submit GSTR
3. ID Proof of the Signatory:
-Aadhaar-based verification or e-signature
-Copy of PAN card, Aadhaar card, passport, driving license, or photo ID issued by a Gazetted Officer
Benefits of Hallmarked Gold
1. Assurance of Quality: Buyers are guaranteed the quality of the gold they purchase.
2. Higher Resale Value: Hallmarked gold fetches a higher resale value due to standardisation.
3. Consumer Protection: Buyers are protected from fraud as hallmarking ensures the purity of gold.
4. Business Growth: Selling hallmarked jewellery helps retailers build a reputation, ensuring long-term business sustainability.
5. Standardisation Benefits: Gold standardisation promotes fair pricing and trading, benefiting both buyers and sellers.
Conclusion
Mandatory hallmarking is a significant step towards ensuring the purity and standardisation of gold jewellery in India. By obtaining hallmark registration, jewellers not only comply with legal requirements but also gain the trust of their customers. With the BIS hallmark, buyers can be assured of the quality and authenticity of their gold, contributing to the overall growth and transparency of the jewellery industry. If you have any queries regarding Hallmark Registration, then feel free contact us at info@ccoffice.in or Call/Whatsapp us on 9988424211.
FAQs
1. What is the purpose of hallmarking gold jewellery?
Ans. Hallmarking ensures the purity and quality of gold jewellery, building trust between buyers and sellers.
2. Who issues the hallmark registration certificate in India?
Ans. The Bureau of Indian Standards (BIS) issues the hallmark registration certificate.
3. Is hallmarking mandatory for all gold jewellery?
Ans. Yes, as of April 1, 2023, hallmarking with a unique HUID is mandatory for selling and buying gold jewellery in India.
4. What documents are required for hallmark registration?
Ans. Documents such as proof of establishment, address proof, annual turnover proof, and ID proof of the signatory are required.
5. What are the hallmarking fees for small jewellers?
Ans. For businesses with a turnover of up to Rs. 5 crore, the registration fee is Rs. 7,500, and the application fee is Rs. 2,000.
6. Can I sell jewellery without hallmarking?
Ans. Selling jewellery without hallmarking is illegal in India and can result in penalties.
7. Where can I get my jewellery hallmarked?
Ans. Jewellery can be hallmarked at BIS Assaying and Hallmarking Centres.
