A steep surge in gold hallmarking fees has sent shockwaves through India’s jewelry industry, triggering severe concerns among trade leaders over the risk of market distortion and a potential resurgence of counterfeit stamping.

GJC has issued a warning regarding the recent regulatory price revision. The fee for hallmarking gold jewelry jumped from Rs 45 to Rs 75 per article—a sudden 66.67% increase that industry leaders argue imposes a disproportionate operational and compliance burden on retailers.

Key Financial & Operational Impacts

Rs 480-Crore Systemic Cost:

Based on the 132.2 million jewelry articles hallmarked during FY 2025–26, the fee revision adds an estimated ₹400 crore in direct expenses to the ecosystem, along with approximately Rs 80 crore in Goods and Services Tax (GST).

Working Capital Pressure:

Turnaround times at Assaying and Hallmarking Centres (AHCs) have stretched from 6 hours to 24–36 hours, trapping inventory and driving up financing costs for retailers.

Low Consumer Awareness:

Despite the mandatory status of the Hallmark Unique Identification (HUID) system, awareness of verification tools—such as the Bureau of Indian Standards (BIS) Care mobile app—remains critically low.

 Trade associations estimates that only 10% of India’s 800 districts possess adequate awareness of the digital verification process.

Fraud Risks and Regulatory Pushback

The widening cost margin and limited consumer education create a fertile ground for bad actors, particularly across Tier-2, Tier-3, and Tier-4 cities. Trade representatives caution that sophisticated counterfeiters are increasingly attempting to replicate physical safeguards, including mandatory item photography.

GJC has formally petitioned Consumer Affairs Minister Pralhad Joshi and the BIS, demanding a rollback to the original Rs 45 rate. The council has requested a full financial audit of AHC operational expenses to justify the steep fee hike.

While government data indicates significant scaling—expanding from 1,220 AHCs in July 2022 to 1,577 by July 2026, with over 650 million cumulative HUID articles processed—the trade contends that without broader public education and streamlined logistics, price escalation risks undermining the integrity of India’s gold standard.