Hallmark Registration: Process, documents required and the procedure for BIS hallmarking registration

Hallmarking of gold jewellery and artefacts is mandatory in India. It is an important step towards the implementation of gold purity standardisation. The Ministry of Consumer Affairs has decided on the compulsory hallmarking of gold based on the Consumer Protection Act 1986.

The Bureau of Indian Standards (BIS) introduced Gold Hallmarking Scheme in 2000 and Silver Hallmarking Scheme in 2005. Since 1 April 2023, the government has made 6-digit hallmarking with Hallmark Unique Identification Number (HUID) mandatory for selling or buying gold.

What is hallmarking?

Hallmarking is the process by which the purity of precious metals like gold and silver is determined and certified based on certain standards set by a regulatory body. After the procedure is complete, the hallmark, also known as the mark of quality, is imprinted on the gold object. It indicates its quality and purity.

Importance of gold hallmarking in India

The following points illustrate the importance of gold hallmarking in India: 

• It assures buyers of the quality of gold/silver jewellery. 
• Gold hallmarking builds trust among consumers and creates a strong relationship between buyers and sellers in the market.
• It ensures legal protection against any violation.
• Hallmark registration certificate adds a lot of value to gold jewellery.

How to apply for a hallmark licence for jewellery? 

Jewellers who wish to apply for a hallmark license for selling gold jewellery must first obtain hallmark registration from BIS. As per the BIS Hallmarking Scheme guidelines, the regulatory body grants hallmarking registration to gold jewellers/sellers for a specified location. 

So, people who wish to sell hallmarked jewellery must obtain Hallmark Registration from BIS for each of their sales outlets. Jewellers who have already received BIS certification can have their gold/silver jewellery hallmarked at BIS Assaying and Hallmarking Centres.

BIS Assaying and Hallmarking Centres are evaluation centres where the purity of gold is examined.

Hallmark registration process

The hallmark registration process has been mentioned as follows: 

• Ensure all documents required for registration have been collected in one place. 
• Fill up the online application for hallmarking of jewellery. 
• Submit the application, documents and the prescribed fees. 
• An inspector of BIS will conduct a minute inspection. 
• Once a BIS inspector is fully satisfied with the result of their inspection, they will provide a Hallmark Registration Certificate, which will reach the applicant via email. 

Hallmarking procedure in India involves three stages of testing. Details are as follows: 

1. Homogeneity testing 

Every item from a given sample is taken for homogeneity testing. These items are checked minutely to evaluate whether they fulfil the regulatory standards set by BIS. 

2. Purity testing 

This is an important step and probably the most difficult one. Randomly, one of 50 similar items is chosen for purity testing. First, a preliminary test is performed on the surface of each of the items. Then, smaller samples are collected from every item for detailed examination. Finally, the tests are intensified to examine the gold's purity, value and fineness. 

3. Individual item marking 

Marking every item individually is the final step. Laser and press are used to imprint the hallmark on the gold depending on the result of the test. The jewellery may be hand-marked as well if the case requires it. 

Documents required for hallmark registration

Check the list of documents required for hallmark registration: 

Proof of a company/firm establishment 

• Registered partnership deed (if the applicant is a partnership firm) 
• Registration certificate issued by ROC and MoA (Memorandum of Association) 
• CA certificate (if the applicant is a proprietorship firm) 

Address proof of company or firm 

• GST registration certificate 
• Income tax assessment order 
• The sale or lease deed agreement 
• Rent agreement with previous rent receipts 
• Latest receipt of property tax 
• Registration certificate issued by a state government 

Proof of annual turnover 

• Copy of GST returns of the previous financial year 
• In case the firm is new, an undertaking should be collected from the firm with an estimate of expected turnover and assurance to submit GSTR. 

ID proof of the Signatory 

• Aadhaar-based verification or e-signature 
• Copy of PAN card, Aadhaar card, passport, driving license or photo ID card issued  by a Gazetted Officer on an official letterhead 

Hallmark license fees

The Government of India has provided guidelines for setting Hallmark License Fees, known as Registration Fees. It depends on the turnover in place population. Here's a table depicting hallmark licensing fees in India: 

Benefits of hallmarked gold

• Mandatory hallmarking of gold jewellery provides much-needed assurance to buyers about their quality. 
• It ensures higher exchange or resale value because quality standardisation always leads to price parity. This increases the trading of gold articles.
• Buyers receive the necessary legal protection. Hallmarked gold/silver ensures they don't get caught in fraud. 
• By selling hallmarked jewellery, retailers lay the base of sustainable business growth. 

It is not possible to assess the purity of gold simply by looking at it. So, if you spot the BIS hallmark on any gold article you purchase, you’ll know it's of high quality. Assurance of high quality is something which consumers desire. Mandatory gold hallmarking will not only develop customers’ trust, it will strengthen the industry as a whole.