Jewellery Stocks Fall After BIS Raises Gold Hallmarking Fee By 67%

Jewellery stocks came under pressure on Wednesday after the Bureau of Indian Standards raised the hallmarking charge on gold jewellery by 67%, with investors assessing the impact of the higher compliance cost on the industry ahead of the festive season.

Kalyan Jewellers India and PC Jeweller fell around 4-5% during the session, while newly listed Lalithaa Jewellery Mart hit its 5% lower circuit.

Under the revised rules, the hallmarking fee for gold articles has been increased to Rs 75 from Rs 45. The charge for silver remains unchanged at Rs 35 per article.

The revised fees came into effect after BIS notified the BIS (Hallmarking) Amendment Regulations, 2026, dated September 14.

Jewellers will now have to pay Rs 75 for each gold article sent to a recognised Assaying and Hallmarking Centre. A minimum charge of Rs 200 will apply to each consignment. For silver, the fee remains Rs 35 per article with a minimum charge of Rs 150 per consignment.

Hallmarking is the certification process used to verify the purity of gold and silver jewellery. A hallmarked article carries the BIS logo, the purity or fineness mark and a six-digit Hallmark Unique Identification number.

The higher charge has drawn criticism from the jewellery industry. The All India Gem and Jewellery Domestic Council has asked the government and BIS to reconsider the increase and retain the earlier fee until consultations with industry stakeholders are completed.

Moneycontrol reported that GJC chairman Rajesh Rokde questioned the need for the increase, pointing to the sharp rise in hallmarking volumes and the jump in the mandatory compliance cost. The industry body said it supports hallmarking as a way to ensure purity and consumer confidence, but wants the higher fee to be reviewed.

GJC vice chairman Avinash Gupta said the industry also needs stronger action against fake hallmarking, unauthorised operations and non-compliance. He said higher costs for compliant businesses could widen the gap between formal and unauthorised channels.

The fee increase comes ahead of the festive period, when jewellery demand typically picks up. For jewellers, the immediate issue is the additional cost attached to every hallmarked gold article. How much of that cost is absorbed by jewellers or passed on through pricing will depend on the competitive environment and demand.

The revised charges apply immediately, making the impact visible for jewellers as they enter one of the busiest periods of the year.

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