As gold hallmarking charges rise, fraudsters get busy

Kolkata: As hallmarking fees for gold soar, fraudsters are becoming more active, particularly in smaller cities where consumer awareness is low. These charges are paid by buyers when purchasing jewellery. Unfortunately, many consumers are unaware of the HUID number they can check on the Bureau of Indian Standards Care app. Presently, only about 10% of India's 800 districts have sufficient knowledge of this app, leaving them exposed to fraud.

Rajesh Rokde, chairman of the All-India Gem and Jewellery Domestic Council (GJC), highlighted that fraudsters are employing increasingly sophisticated techniques to counterfeit hallmarking safeguards, such as photos. The GJC has approached the consumer affairs minister, Pralhad Joshi, and the BIS, advocating for the reinstatement of the previous ₹45-per-article rate from the new ₹75 rate. This 66.67% increase is placing a substantial financial burden on the mandatory system.

The GJC has raised doubts about whether this higher cost equates to better consumer protection. Government data demonstrates that recognized assaying and hallmarking centers (AHCs) have grown from 1,220 in July 2022 to 1,577 in July 2026. Additionally, the number of gold articles hallmarked with HUID has risen to over 650 million.

The scale of operations has expanded significantly. In 2025-26, 132.2 million jewellery pieces were hallmarked. At the revised rate, the council estimates an additional cost to the industry of around ₹400 crore, along with roughly ₹80 crore in GST. The GJC has requested a comprehensive cost assessment from the BIS, including the expenses related to new equipment, manpower, processing, and storage.

They have also questioned the additional costs tied to mandatory photography, arguing that photos could potentially be replicated or altered by fraudsters.

The council noted that the turnaround time for hallmarking has extended from 6 hours to 24-36 hours, tying up jewellers' working capital and raising financing costs.