How to Calculate Gold Jewellery Price: Making Charges, GST and Hallmark
Short answer
Gold jewellery price = (gold value + making charges + stone or other charges) × 1.03, because GST on jewellery is 3%. Gold value is the rate per gram for your purity multiplied by the weight. Example: at an example 24K rate of ₹1,50,000 per 10 g, a 10 g 22K chain is worth about ₹1,37,538 in gold; 12% making adds ₹16,505 and GST adds ₹4,621, so the bill comes to about ₹1,58,663.
Walk into any jewellery shop before Dhanteras and Diwali and you will see the day's gold rate on a board. But the price on your bill is always higher than "rate × weight". The difference comes from three things: the purity of the piece, the making charges and GST. Once you know how each one is added, you can check any quote in a minute and compare shops fairly.
All the examples below use an example rate of ₹1,50,000 per 10 grams for 24K gold so the maths is easy to follow. Gold rates change every day (and during the day), so always use the rate your jeweller quotes on the day you buy.
Step 1: Find the rate per gram for your purity
Most jewellery in India is 22 karat, which is 91.6% pure gold (marked 916). Coins and bars are usually 24 karat (999 or 995). Many shops show both a 24K and a 22K rate. If you only have the 24K rate, convert it:
Rate per gram (22K) = 24K rate per 10 g ÷ 10 ÷ 0.999 × 0.916
With our example: ₹1,50,000 ÷ 10 = ₹15,000 per gram for 24K, and ₹15,000 ÷ 0.999 × 0.916 ≈ ₹13,754 per gram for 22K. For 18K (75% pure, marked 750) the same method gives about ₹11,261 per gram.
| Purity (BIS grade) | Gold content | Example rate per gram |
|---|---|---|
| 24K (999) | 99.9% | ₹15,000 |
| 22K (916) | 91.6% | ₹13,754 |
| 18K (750) | 75.0% | ₹11,261 |
| 14K (585) | 58.5% | ₹8,784 |
Step 2: Work out the gold value
Gold value = rate per gram × net weight of gold. A 10 g 22K chain is worth ₹13,754 × 10 = ₹1,37,538 in gold. If the piece has stones, ask for the gold weight separately: you should not pay the gold rate on the weight of stones, beads or lac filling.
Step 3: Add the making charges
Making charges pay for the design and the work. Jewellers quote them in three ways, and you need to know which one you are being offered:
- A percentage of the gold value (for example 12%): ₹1,37,538 × 12% = ₹16,505.
- A fixed amount per gram (for example ₹900 per gram): ₹900 × 10 = ₹9,000.
- A flat amount for the whole piece, common for small or very detailed items.
Machine-made chains usually have lower making charges than handmade or antique-style pieces. A per-gram quote can work out cheaper than a percentage when the gold rate is high, because it does not rise with the price of gold. To see what a percentage really means in rupees, our percentage calculator does it in one step, and the guide on finding a percentage of a number shows the method.
Step 4: Add stone or other charges, then 3% GST
Add any separately priced stones, hallmarking or other charges. Then apply GST. For the sale of gold jewellery, GST is 3% of the full value, including the making charges, whether or not the making charges are shown separately on the bill. (A separate 5% rate applies when a jeweller only does job work, such as making jewellery from gold that you supply.)
For our chain: (₹1,37,538 + ₹16,505) × 3% = ₹4,621 GST, so the total is ₹1,58,663. That is about ₹15,866 per gram, compared with the board rate of ₹13,754 for 22K. Our GST calculator can add or remove GST from any amount, and the GST guide for India explains the CGST and SGST split you will see on the invoice.
Worked examples: how much the making charge changes the bill
| 10 g 22K piece (example rate) | Making | GST 3% | Total bill | Effective per gram |
|---|---|---|---|---|
| Making 8% of gold value | ₹11,003 | ₹4,456 | ₹1,52,997 | ₹15,300 |
| Making ₹900 per gram | ₹9,000 | ₹4,396 | ₹1,50,934 | ₹15,093 |
| Making 12% of gold value | ₹16,505 | ₹4,621 | ₹1,58,663 | ₹15,866 |
| Making 20% of gold value | ₹27,508 | ₹4,951 | ₹1,69,996 | ₹17,000 |
The gold is the same in every row, yet the bills differ by about ₹19,000. That is why comparing making charges between shops matters more than small differences in the board rate.
A second example with stones: a 5 g 18K ring with 15% making and ₹3,000 for stones. Gold value ₹11,261 × 5 = ₹56,306; making ₹8,446; subtotal with stones ₹67,752; GST ₹2,033; total about ₹69,785.
Exchanging old gold
Many families trade in old jewellery when buying new pieces. The jeweller tests the purity, weighs it and usually deducts a percentage for melting losses. Example: 6 g of old 22K gold with a 5% deduction is worth about ₹13,754 × 6 × 0.95 = ₹78,396. Against the ₹1,58,663 chain, you would pay about ₹80,267. Deductions vary a lot between shops, so ask for the purity reading, the weight and the deduction in writing, and ask how GST is applied in the exchange. In our calculator, the old gold value is subtracted from the final price after GST.
Check the hallmark before you pay
Under the Bureau of Indian Standards (BIS) scheme, hallmarked gold jewellery carries three marks: the BIS logo, the purity grade (such as 22K916) and a six-digit alphanumeric HUID (Hallmark Unique Identification). You can enter the HUID in the free BIS Care app to see the jeweller's registration, the purity and the type of article. The hallmark is your proof that you are paying for the purity you were promised, so make sure it matches what is written on the bill.
A quick checklist for festival shopping
- Note the day's 24K and 22K rate from the shop, and confirm which one the quote uses.
- Ask for the net gold weight, separate from stones.
- Ask how making charges are quoted: percentage, per gram or flat.
- Check that GST is 3% on the total and that the bill shows the HUID.
- For exchanges, get the old gold purity, weight and deduction in writing.
- Compare at least two or three shops using the same numbers.
Put the numbers from each shop into our gold jewellery price calculator: it converts the rate for your purity, adds making charges and GST, and subtracts any old gold, so you can compare quotes side by side. Diwali falls on 8 November 2026 and Dhanteras on 6 November, and the Diwali countdown shows how many days you have left to compare. If you are setting a festival budget, our Diwali gift budget checklist can help, and the discount percentage guide shows how to check "making charges off" offers.
VSH take: the gold rate gets all the attention, but the making charge is where your bill really changes. Two pieces of the same weight can differ by tens of thousands of rupees. Ask for every number in writing, check the HUID, and remember that if you sell jewellery later, you generally get back the gold value, not the making charges or the GST. If you are buying mainly as an investment, look at how much of the price is gold. Our SIP returns guide is a good place to compare other ways to save.
This guide is general information, not financial or tax advice. Rates, making charges, exchange deductions and tax treatment vary by shop and can change; confirm the details with your jeweller and the official BIS and GST sources before you buy. ViralScopeHub is not affiliated with BIS, any government body or any jeweller.
Frequently asked questions
How is gold jewellery price calculated?
Multiply the rate per gram for the purity (such as 22K) by the weight to get the gold value, add the making charges and any stone charges, then add 3% GST on that total.
How do I get the 22K gold rate from the 24K rate?
Divide the 24K rate per 10 g by 10, divide by 0.999 and multiply by 0.916. At ₹1,50,000 per 10 g for 24K, 22K works out to about ₹13,754 per gram.
Is GST charged on making charges for gold jewellery?
Yes. When you buy jewellery, GST is 3% on the full value, including making charges. A separate 5% rate applies to job work, such as making jewellery from gold you supply.
What are normal making charges for gold jewellery?
They vary by shop and design. Simple machine-made chains usually cost less than handmade or antique pieces. Always ask whether the charge is a percentage, a per-gram rate or a flat amount, and compare shops.
How do I check if my gold jewellery is hallmarked?
Look for the BIS logo, the purity grade (such as 22K916) and a six-digit HUID. Enter the HUID in the free BIS Care app to verify the jeweller and purity.
