The hallmark swap — how it works

In March 2026, a gang was busted in Chamoli, Uttarakhand, for swapping customers' genuine gold jewellery with fake pieces bearing forged BIS hallmarks. One victim, Lovely Rawat of Jyotirmath, had pledged her nose ring and earrings worth ₹40,000 in July 2025. When she retrieved them in December, another jeweller confirmed they had been switched for base metal. The HUID codes on the fake pieces did not appear in the BIS CARE app database.

This is not an isolated case. Investigations in Rajasthan uncovered a parallel scheme where copper and brass pieces were sold outright as 22-karat gold using fake BIS certifications. Operations in Maharashtra and Delhi have since uncovered similar frauds, according to the Department of Consumer Affairs.

What a genuine 2026 BIS hallmark looks like Modern hallmarked gold carries exactly three marks: the BIS triangular logo, the purity grade (e.g., 22K916), and a six-digit alphanumeric HUID code. Scammers use laser machines to engrave convincing fakes — but the HUID will not resolve in the official BIS CARE app.

The making charge scam

Even when the gold is genuine, buyers frequently overpay through making charge manipulation. Modern jewellery is manufactured using CAD and laser cutting — actual material wastage is close to zero, yet many jewellers still charge a 10% "wastage fee" on top of making charges that already range from 8% to 35%. On a ₹2 lakh purchase, a 10% wastage charge adds ₹20,000 for nothing.

A second common manipulation: charging the gold rate on gross weight when stones, wax, or glass are present. For Kundan, Polki, or diamond-set pieces, you should always insist on the net gold weight after deductions.

The cash invoice trap

Buying gold in cash without a GST invoice to "save 3%" makes the gold legally untraceable — it cannot be insured, pledged for a bank loan at fair value, or easily resold without a provenance question. The 3% GST saved can cost multiples of that at resale.

What the law requires from jewellers

Under BIS rules in force from 2021, all jewellers with an annual turnover above ₹40 lakh in notified districts must sell only hallmarked gold. Selling non-hallmarked gold in mandatory areas carries a fine up to five times the item's value, or imprisonment up to one year. From 2026, silver hallmarking with HUID codes is also mandatory.

How to protect yourself

Before paying, verify the HUID code using the free BIS CARE app (available on Google Play and Apple App Store). Enter the six-digit code printed on the piece — the app will show the registered purity, jeweller, and hallmarking centre. If the code does not resolve, do not proceed.

Always request a bill breakup that separately lists: gold weight, purity, gold rate on that day, making charges (percentage or flat), hallmarking fee (typically ₹35 per piece), and GST. If a jeweller refuses to provide this in writing, leave.

If you have been defrauded, complaints can be filed online at edaakhil.nic.in with the Consumer Disputes Redressal Commission, or through the BIS CARE app directly.

Why record-keeping matters more than ever at ₹1.52 lakh/10g At current prices, a 100g 22K gold holding is worth approximately ₹13.7 lakh. Knowing the exact weight, purity, and purchase price of each piece — not a rough estimate — is the difference between a fair insurance claim and a shortfall. It also determines your actual gain or loss if you sell.