Confirm Purity: The BIS Hallmark is Your Proof
The single most important factor in any gold purchase is purity, measured in karats (K). Before you even consider a design, look for the Bureau of Indian Standards (BIS) hallmark. Since 2023, it has been mandatory for all new gold jewellery to have a 6-digit
alphanumeric Hallmark Unique Identification (HUID) number. This code is your guarantee of purity. A jeweller should be able to show you three marks on the item: the triangular BIS logo, the purity grade (e.g., 916 for 22K or 750 for 18K), and the HUID. Do not purchase jewellery without these marks.
Verify the HUID on the BIS CARE App
Don't just see the HUID, verify it. Download the official 'BIS CARE' app on your smartphone. Before paying, enter the 6-digit code from the jewellery into the app's 'Verify HUID' section. The app should display the item’s details, including the jeweller's name, hallmarking date, purity, and type of article. If the details on the app do not match the piece in your hand or the information provided by the seller, it is a major red flag. This simple, 60-second check empowers you to confirm authenticity on the spot.
Break Down the Price: Gold Rate, Weight, and GST
The final price of your jewellery is not just the gold's value. The formula jewellers use is: (Gold Rate x Weight in Grams) + Making Charges + 3% GST. First, confirm the day's gold rate for the correct purity (22K or 18K). Jewellers are required to display this. Second, ensure you are only paying for the net weight of the gold. If the piece is studded with stones, their weight should be deducted from the total weight before calculating the gold's price. Finally, a 3% Goods and Services Tax (GST) is applied to the total value of the gold plus the making charges.
Negotiate the Making Charges
Making charges, or the cost of labour and craftsmanship, are where jewellers have the most margin and you have the most room to negotiate. These charges can range from 8% to over 25% of the gold's value and are not recoverable upon resale. They can be quoted as a flat rate per gram or a percentage of the gold value. Always ask for a clear breakdown and don't be afraid to negotiate, especially on larger purchases or during festive seasons. Comparing making charges between a few jewellers for a similar item can give you significant bargaining power.
Beware of 'Wastage' and Studded Jewellery Costs
Some jewellers use the term 'wastage' in addition to or instead of making charges, claiming it covers gold lost during the manufacturing process. Ask for these charges to be specified separately from making charges, as they are often just a way to inflate the bill. For jewellery with stones, be extra vigilant. Unscrupulous sellers may weigh the entire piece and charge you the gold rate for the weight of the stones as well. Always ask for the net gold weight and the value of the stones to be listed separately on the bill.
Insist on a Detailed Invoice and Understand the Buyback Policy
Your final invoice is a crucial legal document. It must detail every component of your purchase: gold weight, purity (karat), the gold rate applied, making charges, stone weight and value (if any), HUID number, and GST. Before paying, also ask about the jeweller's buyback or exchange policy. When you sell gold back, you will not get the making charges or GST refunded. A reputable jeweller will have a transparent policy, often offering a percentage of the prevailing gold value for the net weight of your item. Knowing this upfront protects you from future surprises.
