Making Charges and GST on Gold Jewellery: How to Read Your Bill

The headline gold rate is only the starting point of what you pay for jewellery. Two more lines on the bill decide the final amount: the making charge, which you can negotiate, and GST, which you cannot.

What the final price is made of

1. Gold value: weight in grams multiplied by that day's rate for the karat.
2. Making charge: what the jeweller charges for the craftsmanship, either as a percentage of the gold value or as a fixed amount per gram.
3. GST: 3% on the combined value of the gold and the making charge. Check your invoice to confirm how it is applied.
4. Stones and other items: if the piece has diamonds or gemstones, these are priced separately and may carry their own tax.

How big are making charges?

There is no fixed rate. Simple pieces such as plain bangles or coins can carry low charges, often in single digits as a percentage. Intricate temple jewellery, antique finishes and machine-made designs can run much higher. Because the charge is set by each shop, it is the one part of the bill that is genuinely worth comparing.

Watch for "wastage"

Some jewellers quote a separate wastage figure, which is meant to cover metal lost while the piece is made. In practice it is just another form of making charge. Ask for the total of making plus wastage so you can compare shops on equal terms.

A fair way to compare two quotes

Ask both jewellers for the same thing: the rate they are using, the weight of the piece, the making charge and the GST, each on its own line. Then convert both to a single number, the total cost per gram. A shop with a lower making percentage but a higher gold rate can still end up costing more.

You can do the sum yourself with our gold price calculator. Enter the weight, purity and the making charge each shop quotes, and compare the totals.

Worked example

Say you are buying 20 grams of 22K jewellery. If the rate is ₹9,000 per gram, the gold value is ₹1,80,000. With a making charge of 10%, that adds ₹18,000, bringing the subtotal to ₹1,98,000. GST at 3% adds ₹5,940, for a total of ₹2,03,940. Drop the making charge to 7% and the total falls by about ₹5,600, which can be more than a typical day's move in the gold rate.

Resale and exchange

Making charges are usually not refunded when you sell. If you plan to exchange the piece later, ask what the shop's buy-back policy is and whether the making charge is adjusted. For an investment purpose, coins and bars carry far lower making costs than jewellery.

Frequently asked questions