A jewellery showroom owner in Surat recently shared a concern: “We’ve been selling certified gold for years. Why is BIS asking for more paperwork now?”

Within days, an inspection team questioned inventory tagging and HUID mapping. Sales slowed, customers became cautious, and the real issue turned out to be documentation — not purity.

This is the reality many jewellers are facing today. BIS Hallmark Certification is no longer optional. It is a structured legal requirement under the BIS Act, 2016. Whether you are a manufacturer, wholesaler, retailer, or importer, compliance is now directly linked to your ability to operate smoothly.

1. What is BIS Hallmark Certification?

BIS Hallmark Certification is an official purity assurance system governed by the Bureau of Indian Standards. It confirms that the gold or silver jewellery sold matches the declared carat and fineness.

For jewellers, hallmarking is not just a consumer trust tool — it is a statutory compliance mechanism. Enforcement has increased significantly across districts, and authorities are conducting regular inspections to verify compliance accuracy.

Every hallmarked gold jewellery piece must contain the following elements:

• BIS logo
• Purity in carat and fineness (for example, 22K916)
• Assaying & Hallmarking Centre identification mark
• Jeweller’s BIS registration number
• Hallmark Unique Identification (HUID) code

Since April 2023, HUID-based hallmarking has become mandatory across notified districts. Selling jewellery without HUID, even if pure, can invite regulatory action.

For business owners, this means purity alone is not enough — documentation and traceability matter equally.

2. Who Must Obtain BIS Registration?

Many jewellers still assume that only large brands require registration. This is incorrect. BIS registration applies to all entities selling gold jewellery in notified areas.

If your business introduces jewellery into the market — directly or indirectly — registration is required.

Applicable entities include:

• 1. Jewellery manufacturers
  2. Wholesalers
  3. Retail jewellers
  4. Online sellers
  5. Importers selling within India

Even if you operate:

• 1. A single retail outlet
  2. Multiple branches
  3. A franchise model
  4. Marketplace-based online sales

Registration is mandatory.

One common compliance mistake is opening a new branch and forgetting to update BIS records. During inspections, such branches may be treated as unregistered units.

3. Permitted Gold Purity Standards Under BIS

The government has standardized specific carat categories to maintain uniformity in gold trade across India. Jewellers cannot hallmark arbitrary purity levels.

The permitted categories are:

1. Carat	2. Fineness Mark	3. Purity Percentage
14K	585	58.5%
18K	750	75.0%
20K	833	83.3%
22K	916	91.6%
23K	958	95.8%
24K	999	99.9%

For most Indian jewellers, 22K (916) dominates sales.

Business implication:

• 1. Selling jewellery outside permitted categories is non-compliant.
  2. Mixing non-hallmarked old stock with new HUID stock creates risk.
  3. Incorrect purity declaration can lead to stock seizure.

Standardization has reduced ambiguity but increased accountability.

4. Understanding the HUID System

The Hallmark Unique Identification (HUID) system assigns a unique six-digit alphanumeric code to each jewellery piece. This code is digitally stored in the BIS database and can be verified by customers.

Earlier hallmark systems relied on batch marking. HUID introduced piece-level traceability.

For jewellers, this means:

• 1. Each piece must be individually recorded.
  2. Inventory reconciliation must match BIS portal data.
  3. Billing staff must understand HUID mapping.
  4. Non-HUID stock cannot be sold legally.

Many compliance disruptions occur not due to fraud, but due to poor internal tracking systems.

Businesses that digitized inventory early adapted smoothly. Those relying on manual systems faced reconciliation challenges.

5. BIS Registration Process for Jewellery Businesses

The registration process is online, but accuracy is critical. Minor mismatches can delay approvals.

The general process involves:

• 1. Creating login credentials on BIS portal
  2. Filling application form
  3. Uploading required documents
  4. Declaring all sales outlets
  5. Paying registration fee
  6. Receiving BIS registration number

Required documents typically include:

• 1. GST certificate
  2. PAN card
  3. Business registration proof
  4. Address proof of premises

After registration:

• 1. Jewellery must be sent to BIS-recognized Assaying & Hallmarking Centres (AHCs).
  2. Proper batch records must be maintained.
  3. Periodic inspections may occur.

Common delays happen due to:

• 1. Address mismatch between GST and shop location.
  2. Undeclared branches.
  3. Incorrect document uploads.
  4. Improper category selection.

A structured documentation approach can prevent operational delays.

6. BIS Fee Structure and Cost Considerations

Understanding the cost structure helps in pricing decisions.

1. Component	2. Approximate Amount (INR)
Registration Fee	2,000
Annual License Fee	7,500
Hallmarking Charges	Per piece (varies by centre)

Hallmarking charges depend on:

• 1. Volume of jewellery submitted.
  2. Assaying centre location.
  3. Service agreements.

High-volume jewellers often negotiate per-piece costs to optimize margins.

Failure to account for hallmarking cost in pricing can impact profitability.

7. Legal Penalties for Non-Compliance

Non-compliance under the BIS Act can result in strict enforcement measures.

Authorities may initiate:

• 1. Stock seizure
  2. Monetary penalties
  3. Legal prosecution
  4. Temporary business suspension
  5. Imprisonment in serious violations

Inspections may occur without prior notice.

Even technical errors, such as selling non-HUID stock unintentionally, can trigger action.

Intent does not exempt liability. Documentation accuracy is the key defense.

8. Common Compliance Mistakes Jewellers Make

From advisory experience, the most frequent issues include:

• 1. Displaying old non-HUID stock.
  2. Not updating newly opened branches.
  3. Using unauthorized hallmarking centres.
  4. Improper HUID mapping in invoices.
  5. Lack of inventory reconciliation system.

Many jewellers focus on purity but ignore documentation alignment.

Training billing staff and maintaining structured compliance checklists significantly reduce risk.

9. Benefits of Early BIS Hallmark Compliance

Though compliance appears regulatory in nature, it provides business advantages.

Compliant jewellers experience:

• 1. Increased consumer trust.
  2. Fewer return disputes.
  3. Improved resale confidence.
  4. Stronger brand positioning.
  5. Competitive advantage in organized retail markets.

In metro cities, customers increasingly verify HUID before purchase.

Compliance is becoming a market expectation, not just a legal requirement.

10. Silver Hallmarking Overview

Silver jewellery and artefacts are also regulated under BIS norms.

Common silver categories include:

• 1. 999
  2. 925

Businesses dealing in silver must ensure compliance separately.

11. Inspection Preparedness Checklist

Before any inspection, ensure:

• 1. Valid BIS registration certificate displayed.
  2. All branches declared and approved.
  3. No non-HUID stock in display or sale.
  4. Proper hallmarking invoices maintained.
  5. HUID mapping records available.
  6. Staff trained on compliance protocols.

Preparedness reduces panic during inspections and protects reputation.

Conclusion

For jewellery businesses, BIS Hallmark Certification is now directly linked to operational continuity.

Ignoring compliance can lead to:

• 1. Financial loss
  2. Operational shutdown
  3. Reputational damage
  4. Customer trust erosion

Early registration, structured documentation, and disciplined inventory management can prevent disruptions.

If you are unsure whether your jewellery business is fully compliant, reviewing your status today can prevent serious consequences tomorrow.

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