Thinking of selling old gold jewellery? In 2026, the government changed some hallmarking and GST stuff. If you don’t know what’s happening, you might get less money or run into trouble. Or not. Depends on the buyer, honestly. But you should probably understand the new rules anyway. This blog is just a rough guide, not legal advice or whatever. But it might help you get a better price.
The HUID Hallmark Mandate (Myth vs. Fact)
So everyone talks about HUID. That’s Hallmark Unique Identification. People get confused. Let me clarify: BIS made HUID mandatory for jewellers who sell new jewellery. Not for you to sell your old stuff. That’s a big difference. A lot of sellers don’t realize this.
But having that HUID number on your jewellery? Works in your favor. Why? Because the buyer can scan it with the BIS Care App and instantly know the purity. No arguments about karatage. You get the right price.
No HUID marking? Don’t panic. Reputable buyers use XRF machines to test purity. Just make sure they do it in front of you. Never let them take it to a back room. That’s sketchy.
The GST Reality for Sellers of Gold Jewellery
You don’t actually “pay” GST when you sell gold. You’re not the one writing a cheque to the government. But here’s the catch: the buyer’s costs include 3% GST on the metal value. So that gets factored into what they offer you. This is why different buyers quote slightly different rates. They manage their GST stuff differently.
One tip. Compare the per gram rate. Not just the final number on the bill. Some buyers show you a nice total but use a lower per gram rate hoping you won’t check. Ask for a breakdown:
- Weight of pure gold after removing stones or impurities
- Karatage (22K, 18K, whatever)
- Per gram rate, they’re offering
- Any deductions for melting or processing
A decent buyer will give you this without a fuss. If they dodge the question? Red flag.
The Impact of New Import Restrictions on Sellers
In 2026, the government restricted finished jewellery imports until April. Something about boosting local manufacturing. What does that mean for you? It’s created more demand for old gold from local refiners and jewellers.
So you might get a better price. When imported gold is harder to get, domestic buyers compete for your old jewellery. If you’re selling in the next few months, you’re in a decent position.
But don’t get careless. More demand also brings shady buyers who want to cheat uninformed sellers. Stick to licensed places with physical shops and real credentials.
Checklist Before You Sell Gold Jewellery
Mandatory Documentation:
Bring your Aadhaar and PAN card. Required by law for transactions over ₹2 lakhs under the PMLA. Even for smaller amounts, proper buyers keep KYC records. If a buyer doesn’t ask for ID, they’re probably not legit. Avoid them.
Know Your Gold:
Before you go to a buyer, weigh your jewellery and figure out the karatage yourself. Most Indian gold is 22K (91.6% pure) or 18K (75% pure). Got the original bill? Bring it. Helps with negotiation.
Check the day’s gold rate. It changes daily based on international markets. Knowing the baseline helps you spot a bad offer.
Stone and Kundan Work:
If your jewellery has stones, insist that they remove and weigh them separately before weighing the gold. Some buyers weigh everything together, then deduct stone weight at random rates. You can keep your stones or negotiate their value separately.
Payment Method Matters
Over ₹2 lakhs? Payment by cheque or bank transfer is legally required. Some buyers might offer slightly lower rates for cash to manage their own taxes. That’s illegal. Don’t do it.
Bank transfer (NEFT/RTGS/IMPS) is the safest. Creates a record, gives you proof, no risk of carrying cash around. Legit buyers in Mohali and nearby areas prefer bank transfers anyway. Everyone’s safer.
Understanding Testing Methods in 2026
Modern buyers use a few ways to test:
- XRF Gun Testing – non-destructive, instant, accurate. Uses X-rays to figure out the gold composition. Should be done right in front of you.
- Touchstone Testing – old school method with acid and a stone. Less precise but still common for quick checks.
If a buyer wants to take your jewellery elsewhere for testing? Say no. Legit testing happens on-site, with you watching.
Final Thoughts
Selling gold in 2026 can be safer and more transparent than before. But only if you pick the right buyer. The HUID thing, the GST rules, the import restrictions. It all means informed sellers can get good value. Or you could get ripped off. Your call.
Do a little research on your buyer. Know the rules. Insist on transparency. When you sell gold with this stuff in mind, you’re not just some seller. You’re someone who knows what they’re doing. And that usually means more money in your pocket.
