To ensure the purity and transparency of gold jewellery across the country, the government has made the hallmarking rules stricter. This step has been taken because there has been a recent increase in complaints related to misuse of hallmarking and fraud with customers.
Under the new guidelines, it is now mandatory for every gold item to have a unique identification code to confirm its authenticity. The BIS has also expanded mandatory hallmarking to more districts in 2026, strengthening the system further.
What is HUID and Why is it Important?
Under the government’s new system, customers are advised to buy only jewellery that carries the 6-digit Hallmark Unique Identification (HUID) code.
HUID is an alphanumeric unique code given to every hallmarked gold item. Customers can easily verify this code through the BIS Care app using the “Verify HUID” feature.
Hallmarking is a quality guarantee provided by the Bureau of Indian Standards (BIS). It confirms the purity of gold and protects buyers from fraud, such as low-carat or adulterated gold being sold as pure gold.
Reuse of Unique ID is Not Allowed
To make the system stronger, the government has clearly stated that once a HUID number is issued for a piece of jewellery, it cannot be reused for any other item.
This means that once a ring, necklace, or any other gold item gets its unique code, that code will remain its permanent hallmark forever.
This rule will improve accountability at every stage of the supply chain and help completely stop counterfeit hallmarking and fraud.
Important Rules for Buying Gold
The government has also introduced some important financial rules related to the purchase of gold jewellery that customers should know.
A PAN card is mandatory for purchasing gold jewellery worth more than ₹2 lakh.
Cash payments above ₹2 lakh are not allowed.
For higher-value transactions, tax compliance rules may require additional documentation and reporting depending on the amount and current applicable tax rules. Recent reporting also notes discussions around higher thresholds for PAN quoting due to rising gold prices.
These rules are aimed at ensuring transparency in gold transactions and reducing the chances of fraud and unaccounted cash dealings.
