How the price is built
| Part of the bill | What it is |
|---|---|
| Gold value | Weight of the gold × the day's rate for its purity (22K, 18K) |
| Making charges | The cost of making the piece, as a % of the gold value or a fixed amount per gram |
| Wastage, or VA (value addition) | Names used, especially in the south, for gold lost in making plus labour. In practice, part of the making cost |
| Stones | Charged separately; they shouldn't be priced at the gold rate |
| Hallmarking | Paid by the jeweller to the assaying centre (₹45 a piece, plus tax, under BIS guidelines) |
| GST | 3% on gold jewellery. Check how your bill applies GST if making charges are listed separately |
Example
A 10 gram 22K chain at an example rate of ₹13,000 a gram:
| Gold value (10 g × ₹13,000) | ₹1,30,000 |
| Making charges at 12% | ₹15,600 |
| Before GST | ₹1,45,600 |
| GST at 3% | ₹4,368 |
| Total | ₹1,49,968 |
The making charges alone are ₹15,600, about 10% of the bill, and sell it back and you get roughly the gold value only.
Why making charges vary
- Machine-made pieces usually cost less to make than handmade or intricate designs.
- Some jewellers charge a percentage, others a fixed amount per gram. Compare the final amount, not the headline rate.
- Festive offers often cut making charges. Read what's excluded.
Before you pay
- Ask for the gold weight, stone weight and rate per gram separately.
- Get the making charges as a rupee amount.
- Check the hallmark: BIS logo, purity and a 6-digit HUID, and verify it in the BIS Care app.
- Ask what's deducted if you sell or exchange it later.
- Keep the itemised bill.
Common questions
What are making charges on gold jewellery?
The cost of making the piece, charged as a percentage of the gold value or a fixed amount per gram. They vary by design and jeweller.
What is wastage or VA in gold jewellery?
Names used for gold lost in making plus labour. In practice they're part of the making cost.
Do I get making charges back when I sell?
No. When you sell or exchange, you're paid roughly for the gold, less any deductions.
What is the GST on gold jewellery?
3%. If making charges are listed separately, check how GST is applied on your bill.
Two ways to sort this
Do it yourself
- Ask for gold weight, stone weight and rate separately.
- Get making charges as a rupee amount, and compare shops.
- Verify the HUID in the BIS Care app.
- Keep the itemised bill.
Let an expert do it
Exchanging old jewellery? We work out the tax on it and report it.
The first chat is freeWork it out for yourself
- Gold tax: Tax when you sell or exchange gold jewellery, coins or digital gold.
- SGB vs digital gold: Gold bonds or digital gold, after tax.
Exchanging old jewellery? See the tax on it.
Open the gold tax calculatorSources
- Hallmarking guidelines for jewellers, Bureau of Indian Standards
- Sale of gold jewellery without the 6-digit HUID not permitted after 31 March 2023, Press Information Bureau
- Hallmarking: FAQs for consumers, Bureau of Indian Standards
This guide explains the rules in general. For your own situation, .