Hallmarked but not pure? What gold buyers must check this Dhanteras

From checking the HUID on the BIS Care app to verifying gold weight, testing purity and seeking compensation for shortfalls, here’s what buyers should know before buying gold this Dhanteras<

Namrata Kohli | New Delhi

A gold purchase in India usually begins with trust. Trust in the family jeweller, trust in the purity promised across the counter, and increasingly, trust in a tiny hallmark engraved on the jewellery.

But what if the hallmark itself is fake? In July 2026, the Bureau of Indian Standards (BIS) reported action against two jewellery establishments in Ahmedabad where gold jewellery bearing fake hallmarks and lacking the prescribed Hallmark Unique Identification (HUID) number was found. The incident is a reminder that even a familiar-looking purity mark should not be accepted unquestioningly.

The question becomes particularly relevant ahead of Dhanteras, when buying gold is as much a religious tradition as a financial decision. Jewellery is purchased for weddings, gifted to daughters and daughters-in-law, passed down through generations, or simply bought as a store of value. So much so that India is home to the world’s largest hoard of privately held gold.

Yet, while most buyers check the day’s gold rate and negotiate making charges, how many actually verify the purity of what they are buying? Or know where to get jewellery independently tested? And what happens if a supposedly 22-karat ornament turns out to contain less gold than promised?

Hallmarking has introduced an important safeguard. But knowing how to use that safeguard is just as important as its existence.

What does a BIS gold hallmark actually mean?

The first thing a buyer should understand is what a hallmark actually signifies. Under the BIS hallmarking system, gold jewellery carries three identification elements: the BIS logo, a purity mark such as 22K916 or 18K750, and a six-character alphanumeric HUID.

The purity mark indicates the proportion of gold in the alloy. For instance, 22K916 signifies 91.6 per cent gold, while 18K750 indicates 75 per cent gold. The remaining portion comprises other metals added for strength, durability or colour.

“Most customers look for the hallmark when buying gold and rightly so. It is an important check, but I always feel people should know a little more about what they are buying,” says Prerna Khurana, managing director, Khurana Jewellery House.

She recommends checking the HUID, asking about purity and ensuring that the details are recorded on the invoice. If a customer is purchasing a 22-karat ornament, for instance, that specification should be clearly mentioned on the bill.

But what exactly is the HUID, and how does a buyer verify it?

The HUID is a unique six-character code assigned to a hallmarked jewellery article. Consumers can download the BIS Care app, select the ‘Verify HUID’ feature and enter the code engraved on the ornament. The app displays available information, including the purity, article type, jeweller and hallmarking centre.

The exercise takes only a few minutes and can be performed at the jewellery counter, before payment.

“I would encourage buyers to do this themselves while shopping. It takes very little time, and they can check whether the information on the app matches the piece they intend to buy,” says Khurana.

There is, however, an important distinction between verifying a number and establishing the actual purity of an ornament.

“A genuine HUID could potentially be copied, so the information linked to it needs to match the actual piece. If the app shows details that do not correspond with the jewellery, that should not be ignored,” she cautions.

A code that returns a valid result is therefore not, by itself, conclusive proof that the particular ornament being offered is genuine. Buyers should compare the information displayed with the physical article, its purity marking and the jeweller’s description. If the details do not match, the discrepancy should be resolved before the purchase.

What are the three checks to make before buying gold?

Pawan Gupta, chairperson, P.P. Jewellers by Pawan Gupta, identifies three essential safeguards, particularly when buying from an unfamiliar jeweller.

The first is to check all three hallmarking elements: the BIS logo, purity mark and HUID, followed by verification through the BIS Care app. The second is obtaining a proper invoice recording the jewellery description, net gold weight and purity, along with a clear explanation of making charges and other costs. The third is choosing a jeweller who is transparent about quality, pricing and the terms of sale.

“Customers should feel comfortable asking questions and getting clear answers. These checks are useful regardless of whether they are buying from a large jewellery brand or a local jeweller,” says Gupta.

This is particularly important during festive shopping, when the excitement of buying jewellery can sometimes overshadow the paperwork.

“During Dhanteras, people often have a particular piece in mind or are buying jewellery for a family occasion. In all that excitement, they may not pay much attention to the bill or the weight,” says Khurana.

Her advice is to take a few extra minutes, ask questions and ensure that every detail is understood before paying.

How can you get gold jewellery independently tested for purity?

Suppose you have purchased a gold bangle from a local jeweller and subsequently begin to doubt its purity. Can you get it tested independently, without returning to the seller?

Yes. Consumers can approach a BIS-recognised Assaying and Hallmarking Centre (AHC) for purity testing, including for jewellery that is not hallmarked.

“Consumers can get their gold jewellery tested at a BIS-recognised Assaying and Hallmarking Centre, even if the jewellery is not hallmarked. These centres test jewellery brought by consumers and issue a report on its purity,” explains Gupta.

Two testing methods are particularly relevant: X-ray fluorescence (XRF) and fire assay.

XRF testing is non-destructive. It uses X-rays to assess the elemental composition of the jewellery’s surface, without cutting or damaging the ornament. It can be useful for an initial assessment, especially when the owner does not want an expensive or sentimental piece altered.

However, XRF has limitations. Since it primarily measures surface composition, it may not accurately represent the purity of the entire ornament, particularly if the jewellery contains different materials or has been surface-treated.

Fire assay is a more comprehensive laboratory method for determining gold purity. It involves taking a sample from the jewellery and analysing its precious-metal content. The disadvantage is that sampling can cause damage to the ornament.

“Customers should ask the centre about the process and give their consent before testing,” advises Gupta.

The distinction matters for consumers who may be testing an heirloom, an elaborate bridal necklace or an ornament with considerable sentimental value.

According to the BIS consumer-testing guidelines cited by Gupta, the minimum testing charge for a lot is Rs 200, with additional per-piece charges under the applicable schedule.

Consumers should confirm the current fee, the testing method and whether sampling will damage the article before proceeding. A simple home test, he cautions, cannot replace professional testing.

Why should buyers check the net gold weight on the invoice?

Purity is not the only issue buyers need to understand. There is also the question of how much gold they are actually paying for.

Consider a necklace weighing 50 grams. The total weight may include gold, diamonds, coloured gemstones, enamel, lac or other materials. But the buyer should not assume that all 50 grams represent gold.

“When buying jewellery that includes diamonds, gemstones, enamel or other materials, customers should ask the jeweller to explain the total weight and the net gold weight separately,” says Gupta.

The gold component should be priced according to its actual weight and purity. Diamonds, gemstones and other non-gold components should not be included in the net gold weight used to calculate the gold value. These materials may have their own prices, which should be disclosed separately.

For instance, a diamond necklace should have a clear distinction between its gross weight and the actual weight of gold, with the diamond or gemstone component identified separately.

This becomes particularly relevant for elaborate festive and bridal jewellery, where non-gold materials may account for a meaningful proportion of the ornament’s total weight.

Gupta recommends an itemised invoice showing the jewellery description, net gold weight, purity, gold value, making charges, gemstone costs and applicable GST.

The bill should also record the relevant hallmarking charges. While buyers should verify the HUID on the jewellery itself, its inclusion on the invoice is not currently mandatory under BIS requirements.

Customers should additionally seek written clarity on buyback and exchange policies. These can vary significantly between jewellers.

A store may offer an exchange against new jewellery but deduct making charges, apply a purity assessment or follow different terms for cash buyback. Understanding these conditions at the time of purchase can prevent unpleasant surprises years later.

A detailed invoice, therefore, serves two purposes: It helps consumers understand what they are paying for and provides crucial evidence if a dispute subsequently arises.

What compensation can buyers claim if hallmarked gold fails a purity test?

What happens if independent testing reveals that a supposedly 22-karat ornament is of lower purity, and the jeweller refuses to replace it or provide compensation?

Consumers have legal remedies, including a specific compensation provision under BIS rules.

“Consumers should not treat the jeweller’s refusal to replace it or compensate them as the end of the matter,” says Aditya Parolia, managing partner, PSP Legal, and advocate, Supreme Court of India.

The first step is to establish the discrepancy through an authorised testing process and obtain a report from a BIS-recognised AHC. The buyer should preserve the original invoice, proof of payment, photographs of the hallmark and HUID, and all correspondence with the jeweller.

Parolia recommends making payments through legitimate, traceable channels so that the transaction can be established if a dispute arises.

The next step is to send a written complaint to the jeweller, requesting an appropriate remedy, such as replacement, refund or compensation, and retain proof of delivery.

A hallmark, he emphasises, is not merely decorative. It represents a claim about the article’s purity and fineness.

“Rule 49 of the Bureau of Indian Standards Rules, 2018 provides for compensation where hallmarked precious-metal jewellery is found to be below the declared purity,” explains Parolia.

Under the provision, compensation is calculated at twice the value of the purity shortfall for the weight of the article sold, plus testing charges, subject to the applicable rules and procedure.

Importantly, this does not mean the buyer automatically receives twice the entire purchase price. The compensation is linked to the deficiency in purity.

If the jeweller still refuses to resolve the dispute, consumers can complain to BIS and approach the appropriate Consumer Disputes Redressal Commission under the Consumer Protection Act, 2019.

Depending on the facts, the available relief may include a refund, replacement, compensation for the loss suffered and costs.

In cases involving deliberate misrepresentation, criminal remedies may also arise.

Parolia points out that knowingly selling lower-purity gold while falsely representing it as 22- or 24-karat may attract the cheating provisions of Section 318 of the Bharatiya Nyaya Sanhita, 2023.

Misuse or unauthorised application of hallmarks may also attract penal provisions under the BIS Act, 2016.

However, the existence of a purity discrepancy does not, by itself, establish criminal intent. That would depend on the evidence and circumstances of the case.

“Consumers should preserve the disputed jewellery in its existing condition and avoid having it altered or melted before the necessary evidence is secured,” cautions Parolia.

Gold may be purchased in a moment of celebration, but its value often extends across generations. This Dhanteras, checking the price is important. Checking what you are actually getting is even more so.

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