Selling your gold jewellery, gold bars, or coins at a high gold price to get through the financial crisis caused by the Covid-19 lockdown could be a smart move. Mandatory hallmarking has been made applicable across the country as of June 15, 2021, according to a gazette notification. The compulsory hallmarking of gold ensures the yellow metal's purity.
Jewellers having an annual turnover of up to Rs 40 lakh will be free from statutory hallmarking, according to the press release. In addition, gold with additional carats of 20, 23, and 24 will be allowed for hallmarking, according to the press release.
Is Hallmark Required For Selling Gold?
The hallmarking act will only apply to gold sold to consumers by traders. Customers do not need to get their gold jewellery, coins, or other goods hallmarked before selling or exchanging them. There are no consequences for individuals who store and/or utilise jewellery that has not been hallmarked. Customers will also be able to sell their jewellery at market value depending on its purity. It is possible to exchange gold without having it hallmarked. If a trader refuses to exchange gold, the consumer can take legal action against it.
Gold without hallmark can be pledged?
It doesn't matter if the jewellery is hallmarked when gold is pledged for financial purposes. As a result, the law does not apply to gold loans as well. Get the relevant information regarding the condition of the gold from the dealer before pledging the gold. Customers will receive the current market price for gold based on its purity and grams. Gold has been used as security by lenders that offer gold loans. They do consider hallmarking to be an extra quality assurance. Lenders evaluate the quality and quantity of gold before lending against it.
Jewellers are subject to mandatory hallmarking. The jewellery you purchased before will not be harmed in any way. There are no consequences for individuals who store and/or utilise jewellery that has not been hallmarked.
Which are the items exempted from hallmarking?
Watches, fountain pens, and certain forms of jewellery, such as Kundan, Polki, and Jadau, have been exempted from the necessary gold hallmarking.
Articles meant for export that conform to any specification required by the foreign buyer, articles weighing less than two grammes, articles intended for medical, dental, veterinary, scientific, or industrial purposes, articles made of gold thread, gold bullion in any shape of bar, plate, sheet, foil, rod, wire, strip, tube, or coin have been exempted by the notification. Incomplete articles, as well as articles for export, are free from the requirement to be hallmarked.
What are the charges of gold hallmarking?
According to the Bureau of Indian Standards (BIS) website, hallmarking charges for gold jewelry/artefacts payable to BIS recognised Assaying and Hallmarking Centres by BIS licenced jewellers are Rs 35 per article, with a minimum charge of Rs 200 for a consignment. Services tax and other applicable levies are additional.
Regardless of the weight of the jewellery, the hallmarking prices are Rs.35/- +GST per piece for gold jewellery and Rs.25/- +GST per piece for silver jewellery.
Hallmarking of jewellery is required to increase the legitimacy of gold jewellery and customer satisfaction by providing third-party confirmation of gold purity and fineness, as well as consumer protection.
Mandatory Hallmark is applicable for gold bullion/Coins?
Only 14 carat, 18 carat, and 22 carat gold jewellery can be hallmarked and sold, and the order only applies to gold jewellery and antiquities. Gold bullion/coins with a fineness of 999/995 are allowed to be hallmarked by BIS-approved refineries/mints (39 licenced refineries are in operation at present as on 01 Jan 2021). The list of BIS licenced refineries/mints may be found under the hallmarking category on the BIS website.