Gold Jewellery Bill Explained: Making Charges, Wastage and GST
The price on a jewellery bill is always higher than the day's gold rate. The difference is making charges, sometimes wastage, stones, and 3% GST.
What goes into the bill
- Gold value = net weight × that day's rate for the purity
- Making charge — the labour cost, quoted as a percentage, per gram, or a flat amount
- Wastage — some jewellers add it separately; others include it in making
- Stones, if any, priced separately
- Hallmarking charge — small, per piece
- GST — 3% on the total
Worked example: 10 g 22K chain
| Item | Calculation | Amount |
|---|---|---|
| Gold | 10 g × ₹12,800 | ₹1,28,000 |
| Making (10%) | 10% of ₹1,28,000 | ₹12,800 |
| Subtotal | ₹1,40,800 | |
| GST (3%) | 3% of ₹1,40,800 | ₹4,224 |
| Total | ₹1,45,024 |
That is about 13% above the gold value. Machine-made chains often carry 6–12% making; intricate handmade or antique work can be 20–25% or more. Try your own numbers in the calculator.
Gross weight vs net weight
For studded jewellery, gold should be charged on the net weight only. Ask for gross and net weights separately on the invoice so that stones are not billed at the gold rate.
How to pay less
- Negotiate the making charge — it is the most flexible part of the price.
- For "zero making" offers, check that the gold rate has not been raised instead.
- Compare full quotes from two or three shops, not just the gold rate.
- If you are buying as an investment, coins and bars have far lower making charges than jewellery.
Today's rate: 24K ₹13,792/g · 22K ₹12,643/g · 18K ₹10,344/g — see details
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