On the last day of the financial year 2022-23, gold became 60 thousand, then the morning of 2023-24 is bringing new standards of business. That is, gold hallmarking will become mandatory from April 1.
6 digit alpha numeric HUID made mandatory for selling jewellery. However, some relaxation has been given to jewelers who have already declared stock. Along with this, to curb undeclared investment in gold, the cash limit was reduced to Rs 50,000.
From April 1, physical gold without hallmark will not be available and no shopkeeper will be able to sell gold without hallmark. The Bureau of Indian Standards (BIS), the body of the Government of India, which sets the standard of gold in the bullion business, had already given it to the jewelers.
As per the new hallmarking rules from April 1, all jewelers operating in 288 districts and BIS registered jewelers in other districts are required to keep only HUID jewelery in their shop. Display and sale of jewelery is not permitted without HUID. The government is planning to give an extension of 60-90 days only to those jewelers who have declared old stock before August 2021. Jewelery weighing less than two grams and incomplete jewelery need not have HUID.
Surendra Mehta, president of the Indian Bullion and Jewelers Association (IBJA), says that this step of the government will bring transparency in the business of jewellers. Hallmark centers are working in 288 districts of the country. Districts that do not have centers can get their jewelery hallmarked from neighboring districts because now it will be illegal to sell jewelery without hallmarks.
The association fully supports this move of the government. Kumar Jain, secretary of Mumbai Jewelers Association, says that jewelers are fully prepared, most of the reputed jewelers in big cities were already selling hallmarked jewellery, but from April 1, a slight change was made.
Regarding the change in hallmarking of gold jewellery, Kumar says that earlier there was a four digit hallmarking, now it will be of six digits. Actually the government wants to know where the gold came from and where it went.
Hallmarking is mandatory in gold as per BIS norms. If a piece of jewelery has hallmarking, it means that it is pure. Hallmarking marks are put according to carat and purity. Like 22K916 (22 carat gold with 91.6 percent purity), 18K750 (18 carat gold with 75 percent purity) etc. That is, no shopkeeper will be able to sell you low carat jewelry by calling it pure gold.
Regarding old jewelry, Mehta says that if you have old gold jewelry, which is without hallmark, then you will get the rate according to the price of gold on that day. But the shopkeeper will not be able to use that gold until he melts it down and makes a new design with the hallmark. Along with this, the government has also tightened the noose on money laundering.
Now if someone buys gold for more than Rs 50,000 in cash, he will have to reveal his identity along with it. For purchasing gold above Rs 49,999 in cash, the customer will have to provide a photocopy of any one of his identity – Aadhaar card, PAN card, passport or ration card. If a customer purchases gold several times in a year, the total amount of which is 10 lakh or more, then the jewelers will have to inform the Income Tax Department.
The government is telling the change in the business of jewelers as preparation for the future. BIS chief Pramod Kumar Tiwari has said in the past that BIS is preparing standards for emerging technologies like blockchain. Standards are being prepared to promote ease of doing business in the country. National standards are being aligned with international standards so that our external trade continues without any hindrance.
