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Gold Hallmarking Exemptions in India: What Articles Are Excluded and Why

1 November 2024

Gold Hallmarking Exemptions in India: What Articles Are Excluded and Why

While mandatory hallmarking covers the vast majority of gold jewellery sold in India, specific categories of articles and certain classes of jewellers are exempt. Understanding these exemptions helps both consumers and jewellers navigate compliance.

Weight Exemption: Under 2 Grams

Gold articles weighing less than 2 grams are exempt from mandatory hallmarking. This exemption exists for practical reasons: physically stamping a hallmark and HUID on very small or delicate articles can damage them, and the testing process may require destructive sampling that is impractical on tiny pieces.

This exemption primarily affects small nose pins, thin chains, and minimal jewellery items.

Traditional Jewellery: Kundan, Polki, and Jadau

Kundan, Polki, and Jadau jewellery — traditional Indian styles that involve setting uncut diamonds and gemstones in gold using lac (a resinous substance) — are exempt from mandatory hallmarking.

The exemption exists because these articles cannot be tested using standard XRF methods without removing the stones and lac, which would destroy the intricate craftsmanship. The construction technique also means the gold component cannot be isolated for accurate purity measurement without disassembly.

Export-Destined Articles

Gold jewellery manufactured exclusively for export is exempt from BIS hallmarking. Export jewellery is often produced to the purity specifications and hallmarking requirements of the destination country, and requiring BIS hallmarking would create an additional process that may conflict with international customer specifications.

Watches and Fountain Pens

Watches and fountain pens with gold components are exempt. These are typically composite products where the gold component is integrated with other materials and mechanisms, making standard hallmarking impractical.

Gold Bullion

Gold bullion in any form — bars, plates, sheets, foils, rods, wires, strips, tubes, and coins — is currently exempt from the mandatory hallmarking requirement for jewellery. However, BIS has been actively discussing mandatory hallmarking of gold bullion at the refinery level, and this exemption may change in the future.

Gold bullion of 999 and 995 fineness can be voluntarily hallmarked by BIS-approved refineries and mints (approximately 46 are currently licensed).

Jeweller Turnover Threshold

Jewellers with annual turnover below Rs 40 lakh are exempt from mandatory BIS registration and the requirement to sell only hallmarked gold. This exemption acknowledges the reality of India's jewellery market, where many small, family-run businesses operate at modest volumes.

However, these jewellers may voluntarily register with BIS and sell hallmarked articles. No fee is charged for jeweller registration.

What Consumers Should Know

Even for exempt categories, consumers can request independent purity testing. Any BIS-authorized hallmarking centre accepts consumer samples for XRF testing on a paid basis. If you are buying gold that falls into an exempt category, asking for a purity test certificate from an independent AHC provides additional assurance.

The Direction of Policy

The trend is clearly toward fewer exemptions and broader coverage. The addition of 20K, 23K, and 24K gold to mandatory hallmarking in 2022, the inclusion of 9K gold in 2025, and the ongoing discussions about mandatory silver and bullion hallmarking all indicate that India's purity assurance framework will continue to expand.

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