Nanded, Maharashtra — Consumers in Nanded planning to buy gold are being urged to verify hallmarking and understand the final cost components before completing purchases, officials and industry guidance say. Gold purity, making charges, the mandatory 3% GST and other adjustments can substantially change the showroom price from online benchmark rates.
Know the purity and what the karat numbers mean
Gold purity is expressed in karats, which indicate the proportion of pure gold in an alloy. According to industry guidance:
- 24K (99.9%) is the purest form and is commonly used for investment in coins and bars because it is too soft for most jewellery.
- 22K (91.6%) is the standard for traditional Indian jewellery; it is alloyed with other metals to improve durability.
- 18K and 14K contain less gold and offer greater strength for certain jewellery designs.
Buyers in Nanded are advised to check the karat marking and compare it with the price quoted, as lower-karat pieces will naturally contain less gold by weight.
Final price: beyond the online benchmark
Online gold rates serve as a benchmark; the price a buyer pays at a Nanded showroom will include several additional elements. Industry calculations and consumer guidance identify the following components:
- Base gold price (benchmark quoted online).
- Making charges, which vary by design and are often negotiable at the retail level.
- 3% GST levied on the final product.
- Stone deductions: in studded jewellery, the weight of embedded stones is excluded when computing net gold weight for pricing.
"Look for the BIS logo, the purity grade (for example, 916 for 22K), and the 6-digit alphanumeric HUID code," industry guidance says on verifying authenticity.
BIS hallmarking and verification
The Bureau of Indian Standards (BIS) hallmark is the primary verifier of purity for gold sold in India. Buyers should look for the BIS logo, the numeric purity grade such as 916 for 22K, and the unique 6-digit alphanumeric HUID code. The HUID can be verified using the BIS Care app, enabling customers in Nanded to confirm the declared purity before purchase.
| Karats | Purity |
|---|---|
| 24K | 99.9% |
| 22K | 91.6% |
| 18K / 14K | Lower gold content, greater strength |
Alternatives to carrying physical gold
For Nanded residents who prefer to avoid making charges or physical storage, financial-gold products offer options:
- Digital gold: Allows online purchase of small quantities, sometimes from as low as Re 1, held in insured formats by authorised sellers.
- Gold ETFs and mutual funds: Paper assets that track the market price of physical gold and are traded on exchanges.
- Sovereign Gold Bonds (SGBs): Government-issued bonds that provide exposure to gold prices plus a fixed annual interest component.
Regulatory and tax points buyers must note
Several compliance and tax rules apply to gold transactions that Nanded buyers should keep in mind. KYC and PAN submission are mandatory for purchases exceeding ₹2 lakh; cash transactions above ₹10 lakh carry strict KYC requirements. All gold purchases attract a flat 3% GST. On selling, capital gains tax will be applicable according to the holding period and prevailing tax rules. Gifts and inherited gold have their own tax treatment — for instance, gifts received on marriage or from certain relatives are exempt, while others may be taxable if they exceed prescribed thresholds.
Jewellery shop operators in Nanded, local consumers and investors should verify hallmarking, demand a breakup of making charges and GST, and consider paper-gold or government bonds if they wish to avoid physical storage and design-related premiums. With festival seasons and weddings often driving local demand, clear awareness of these elements can help residents make informed choices and avoid avoidable costs.
— Nanded bureau
