Major Government Announcement! Rules for Gold Purchases Set to Change—How Will It Impact Customers?

Gold Tagging Rule Tightens: The Central Government is set to further tighten the regulations regarding the purchase of gold. The objective is to ensure the purity and authenticity of gold.

Gold Tagging Rule Tightens: The government is preparing to make the rules associated with gold purchases even more stringent. Under this initiative, preparations are underway to implement stricter regulations concerning gold tagging within the country, aiming to address growing concerns regarding the misuse of hallmarking while simultaneously ensuring the purity and authenticity of the gold.

In accordance with these regulations, the government has made the use of a HUID code mandatory for every gold item. Customers have been advised to purchase only that jewelry that bears a 6-digit Hallmark Unique Identification (HUID) code. This code can also be verified using the 'BIS CARE' app. This measure will help curb the circulation of counterfeit goods.

Why is Hallmarking Important?

Hallmarking is a certification process that confirms the purity of gold jewelry. In India, this process is regulated by the Bureau of Indian Standards (BIS), which ensures that the gold meets prescribed quality standards. Accurate hallmarking empowers buyers to make informed decisions and protects them from fraudulent practices within the bullion and jewelry sectors.

Hallmarking of gold is mandatory. However, despite this regulation, numerous instances of misuse and irregularities have come to light. Some jewelers have been found selling gold of lower caratage or misusing BIS marks, resulting in financial losses for consumers. Consequently, there is now an urgent need to further strengthen the system to ensure accountability at every stage of the supply chain.

Unique IDs Cannot Be Reused

According to the government's new regulations, the Hallmark Unique Identification (HUID) number affixed to gold jewelry can no longer be reused. This means that a unique 6-digit alphanumeric code (e.g., A2B1C4)—once utilized for a specific piece of jewelry, such as a ring, gold chain, or necklace—cannot be reused for any other piece of jewelry. If a particular code has been assigned to a specific item of jewelry, it remains permanently linked to that item.

Rules Regarding Purchases

*   A PAN card is mandatory for purchases exceeding ₹2 lakh.
*   For purchases exceeding ₹10 lakh, it is now mandatory to provide an Aadhaar card and proof of income, in addition to a PAN card.
*   Payments exceeding ₹2 lakh cannot be made in cash.