Coimbatore: The central government has recently announced the mandatory Hallmark 916 Act for the manufacture of gold jewelry.
Coimbatore: The central government has recently announced the mandatory Hallmark 916 Act for the manufacture of gold jewelry.
This law has paved the way for the availability of ‘brand image’ for jewellery made in India globally. However, the fact that only a few jewels made in the northern states are exempted from the law is not exempted from the law even for gold-plated thali (mangalyam) made by goldsmiths in Tamil Nadu, much to the displeasure of goldsmiths.
A message has been circulating on social media over the past few days on behalf of the goldsmiths, saying:
"Central government has enacted the 916 hallmark mandatory emergency law to benefit just 10 or 20 corporates and foreign companies. As a result, several goldsmiths, small traders and traditional jewelers involved in the jewelry industry will leave the industry. In the end only the big corporates will continue in this business. It is common in South India to make and sell mostly plain jewellery in the market. Even the handicrafts made by our goldsmiths in such jewellery are no exception. The law is also strict enough to impose a fine of up to 5 times if there is a mistake on the jewelry sold, and a jail sentence for the manufacturer and seller of the criminal offense."
He added, "However, Polki, Meenakkari and Jadav jewellery made in the North (made of lacquer, chemical powder, wire, etc.) are exempted from the mandatory Hallmark 916 Act. This compulsory law seems to be a plan to keep the North alive and the South alive. The law states that no longer can goldsmiths seal the bis hallmark directly on gold jewelry made based on pre-order.
Similarly, if the goldsmiths want to be seal, they have to take GST (RC), which is only up to a maximum of 40 lakhs per year (turn over) and if it goes above that, the goldsmiths will also come in the list of traders who has to pay taxes and goldsmiths who do business for the year are not taxed up to Rs 40 lakh. If they earn 40 lakhs per year then only about 8 sovereigns (64 gm) per month is allowed to the goldsmiths without tax. How is this law possible in practice for goldsmiths and small traders who trade in other districts."
"Old hallmark stamped jewellery in jewellery stores should be marked four by four and details such as weight, item, etc. should be submitted by email to the BIS office immediately. If not, confiscation action will be taken. Lawyers say the BIS office is not required by law to provide details other than quality control. Therefore, those involved in the jewellery industry across India are depressed. If not fought legally, the gold jewelry industry will be hit hard.``
Coimbatore Gold Jewellery Manufacturers Association President Muthu Venkatram said, “The Hallmark 916 Act, which is mandatory for the manufacture of gold jewellery by the Central Government, is in favor of all those involved in the gold jewellery industry. This law has many benefits. In particular, Indian jewelry will get a global brand image. Jewellery made in the northern states is exempt from the law. There are a few reasons for that. All of that jewelry is made of certain materials, including lacquer and silver foil. Therefore, it is difficult for them to get the ‘Hallmark’ label.
Therefore, the Minister has now announced that the jewellery is exempted from the law. This will soon be implemented as a legal form. As far as gold jewelery is concerned, no distinction is made as to whether it is made in the North State or in the South State. Overall this law will help take the gold jewellery industry to the next level. Indian jewelery is especially well-recognized globally."