Making charges on gold jewellery, explained
A jewellery bill has more in it than the gold rate. Knowing each part helps you compare shops fairly.
The parts of the bill
| Part | What it is |
|---|---|
| Gold value | weight × today's rate for that purity |
| Making charges | the work of making the piece: a % of the gold value, ₹ per gram, or a fixed amount |
| Wastage / VA (value addition) | gold "lost" while making; charged as a % of the gold value, common in South India |
| Stones | charged separately; ask for their weight to be taken out of the gold weight |
| GST | 3% on the total |
Example: a 10 g, 22K chain
Rate ₹12,000 per gram (22K, before GST):
- Gold: 10 × 12,000 = ₹1,20,000
- Making 12%: ₹14,400
- GST 3% on ₹1,34,400: ₹4,032
- Total: ₹1,38,432
The same chain at 18% making: ₹1,45,848. A 6% difference in making is about ₹7,400 on one chain.
Tips
- Compare shops on the final price for the same weight and purity, not on the gold rate alone.
- Check the BIS hallmark and the HUID number on the piece.
- Stone weight should not be charged at the gold rate.
- When selling or exchanging, ask how much is deducted and get the purity tested.
Work out your own bill with the jewellery calculator, or the value of old gold with the old gold exchange calculator.