Mandating hallmarking in gold will now also control 'black money'

The government has adopted a policy of one arrow, two marks by making gold hallmarking mandatory in the country. Hallmarking has been made mandatory by the government before the sale of gold jewelery weighing more than two grams as well as idols. If consumers get pure gold under this new rule, on the other hand, through the implementation of this law, the government wants to control the illegal trade of gold in the country. Most of which is black money.

According to available data, the country imports about 500 to 70 tonnes of gold every year. Out of which 200 to 40 tons of gold is used in making jewelery. The remaining 500 tonnes of gold is traded without any bills or taxes. The government is looking at buyers and sellers of this 500 tonne gold.

It may be mentioned here that most of the black money in the country is in gold transactions. Gold is widely traded through black money. These transactions take place without any kind of bill. Which is a blow to the government treasury. It also increases the circulation of blackmoney.

Thus, gold hallmarking has been made mandatory by the government to control transactions involving black money in gold. Along with this HUID code (Hallmark Unique Identification Digit) is also made mandatory. This code number will contain all the information of the jewelery manufacturer as well as the information of the buyer. With all this information available on the BIS portal, the government will have complete information on purchases made in gold.

Thus, the government has adopted a one-arrow-two-point policy by making hallmarking mandatory. The availability of gold purchase data from the BIS portal will also put a brake on black money in gold in the near future. On the other hand, consumers will get pure gold.