How a jewellery price is worked out
Price = (gold value + making charges) + 3% GST
Gold value = weight × today’s rate for that purity
Jewellers quote the 24K rate, then price 22K at about 91.6% of it and 18K at 75%. For 10 g of 22K gold at a 24K rate of ₹1,50,000 per 10 g, the gold value is ₹1,37,538. With 12% making charges (₹16,505) and 3% GST, you pay ₹1,58,663.
Check these on the bill
- Hallmark (HUID): every piece must carry the BIS hallmark with a 6-digit HUID. Check it on the BIS Care app.
- Purity: 22K is stamped 916, 18K is 750.
- Weight: stones and enamel should be weighed and priced separately, not charged at the gold rate.
- Making charges: they are negotiable, especially on plain chains and coins. Festival offers often cut them, not the gold rate.
Jewellery or investment gold?
Making charges and GST don’t come back when you sell, so on this example the gold price must rise about 15% just to get your money back. Buy jewellery to wear. To invest, coins, digital gold and especially gold ETFs or gold funds lose far less to costs.
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Questions people ask
Is GST charged on making charges?
Yes. When you buy jewellery from a shop, 3% GST is charged on the whole bill, gold value plus making charges.
What are normal making charges for gold jewellery?
Usually 6–10% for plain machine-made chains and bangles and 12–25% for handmade or designer pieces. Some jewellers charge a flat amount per gram instead.
How much do I get when I sell gold jewellery?
Jewellers pay the gold value for the purity, often minus 2–10%. Making charges and GST are lost. Exchanging for new jewellery at the same shop usually gets the best rate.