How is gold jewellery price calculated in India?

Gold jewellery price = (Weight x Gold rate per gram) + Making charges + GST. GST is 3% on the metal value and 5% on making charges. The gold rate changes daily.

What are making charges on gold jewellery?

Making charges cover the craftsmanship cost of turning raw gold into jewellery. They range from ₹200-400/g for plain pieces to ₹1,200-2,500/g for intricate handcrafted designs like kundan or meenakari.

Why do gold rates change every day?

Gold rates are driven by the international spot price, US dollar strength, INR/USD exchange rate, import duties (~15%), and domestic demand. Wedding season and festivals like Dhanteras push prices higher.

Do you get making charges back when selling gold?

No. When selling or exchanging old gold, you receive only the metal value based on current rates. Making charges are never refunded. This is standard across all jewellers in India.

What is GST on gold jewellery in India?

GST on gold jewellery is 3% on the metal value plus 5% on making charges. For example, on ₹1,00,000 metal value with ₹10,000 making charges, GST would be ₹3,000 + ₹500 = ₹3,500.

How can I get the best price when buying gold jewellery?

Compare making charges per gram across shops — the gold rate is the same everywhere. Choose simpler designs with lower making charges if resale value matters. Always ask for a detailed GST invoice.

What is gold wastage charge?

Wastage charge accounts for gold lost during the manufacturing process (filing, polishing). Some jewellers include it in making charges while others list it separately. Always ask for a clear breakdown before buying.

Is it cheaper to buy gold jewellery online or in-store?

Online prices can appear lower due to reduced overhead, but you cannot verify weight, finish, or fit. In-store purchases let you inspect hallmarking, weigh the piece yourself, and negotiate making charges directly.

Essential Knowledge

How Gold Pricing Works

The price tag on gold jewellery is not just "gold price × weight". There are multiple components. Understanding them empowers you to compare shops fairly.

The Price Formula

Final Price = Metal Value + Making Charges + GST

Metal Value

= Weight (g) × Rate per gram × Purity factor

Making Charges

= Per gram rate OR % of metal value (varies by design)

GST

= 3% on metal value + 5% on making charges

Worked Example

Let's calculate the price of a 22K gold necklace weighing 15 grams, with today's gold rate at ₹7,200/g and making charges of ₹600/g.

Component	Calculation	Amount
Metal Value	15g × ₹7,200/g	₹1,08,000
Making Charges	15g × ₹600/g	₹9,000
GST on Metal (3%)	₹1,08,000 × 3%	₹3,240
GST on Making (5%)	₹9,000 × 5%	₹450
Total Price		₹1,20,690

Making Charges Explained

Making charges pay for the craftsmanship — the labour, artistry, and skill to turn raw gold into jewellery. They vary based on complexity:

Design Type	Making Cost	Examples
Plain / Simple	₹200-400/g	Chains, plain bangles, bars
Machine-Made	₹400-700/g	Italian chains, laser-cut earrings
Handcrafted	₹700-1,200/g	Bridal sets, temple jewellery
Kundan / Meenakari	₹1,200-2,500/g	Rajasthani sets, polki pieces
Antique Finish	₹800-1,500/g	Matte finish, oxidised temple sets

Why Gold Rates Change Daily

Global Factors

International spot price (London Fix)
US Dollar strength
Central bank gold reserves
Global geopolitical events

Indian Factors

Import duty (currently ~15%)
INR/USD exchange rate
Domestic demand (wedding season)
Government policy changes

Resale & Exchange Value

When selling or exchanging old gold, you get the metal value only — making charges are not refunded. This is standard across all jewellers.

Tip: When buying for investment, choose designs with the lowest making charges (plain chains, bangles, coins). When exchanging old gold for new, you only lose the making charge difference.

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