The Gold Hallmarking Fee went up from Rs. 45 to Rs. 75 per gold article. The increase is nearly 67% and comes just before the festive season begins in India. The Bureau of Indian Standards (BIS), however, kept the fee for silver at Rs. 35. Hallmarking checks the purity of precious metals. A hallmarked gold item carries the BIS mark, purity details, and a six-digit Hallmark Unique Identification number. Precisely, a hallmark is an identification of the purity of the gold.
The impact of the announcement didn’t stop at surprising consumers. It went far beyond that. The increased fees hit jewelry stocks. Kalyan Jewelers and PC Jeweler shares fell by up to 4%. Lalithaa Jewelry Mart, which was recently listed, touched its 5% lower circuit. The Rs. 75 fee applies to each gold article, no matter how much it weighs. So, a small gold item and a heavy piece face the same basic hallmarking charge.
Jewelers send gold items to BIS-approved testing centers. The pieces are checked before they receive the hallmark and HUID number. The higher fee drew concern from the jewelry trade. The All India Gem and Jewelry Domestic Council asked BIS to review the increase and speak with industry members.
The rise could be more noticeable for jewelers selling small and lightweight pieces. The same Rs. 75 fee applies to every article. Businesses may have to decide whether to absorb the extra cost or pass part of it on to the final price.
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The impact could be greater for low-value jewelry, where a fixed Rs. 75 charge takes up a bigger share of the item's value.
The fee increase comes at an important time for India’s jewelry trade. Hallmarking gives buyers a way to check gold purity, while jewelers now have to manage a higher cost for every article they sell.