How is gold jewellery price calculated in Indian jewellery shops?

The standard formula followed by all Indian jewellers is: [Net Gold Weight in grams × Gold Rate per gram based on Purity (22K/18K)] + Making Charges + Stone Value + 3% GST on (Gold + Making Charges) + BIS Hallmarking fee (₹45 + 18% GST = ₹53.10 per piece).

What is the difference between 24K, 22K, and 18K gold?

24 Karat is 99.9% pure gold, primarily used for bullion bars and coins as it is too soft for jewellery. 22 Karat (91.6% purity / Hallmark 916) is the standard for traditional Indian yellow gold jewellery. 18 Karat (75.0% purity / Hallmark 750) is mixed with silver, copper, or zinc to provide the hardness required for diamond and gemstone jewellery.

What is the standard GST on gold jewellery in India?

A flat 3% GST applies to both the gold metal value and the making charges (split as 1.5% CGST + 1.5% SGST). A separate 18% GST applies to the nominal ₹45 BIS hallmarking fee.

✨ BIS HALLMARK & GST TRANSPARENCY

Gold Rate & Making Charges Calculator

Calculate the real billing price of gold jewellery in India before visiting the showroom. Verify 22K/18K purity math, compare percentage vs per-gram making charges, and calculate 3% GST.

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Jewellery Specifications

Live Indian Standard Math

Select Gold Purity

24K Gold Rate (₹ per 10 Grams) 22K Rate: ₹7,333 / gram

₹

Gold Net Weight (Grams) Approx: 1.03 Tola

1g (Ring) 10g (Chain) 25g (Bangles) 50g+ (Necklace)

Jeweller Making Charges

Making & Wastage Rate:

8% (Plain Gold) 14% (Intricate) 20%+ (Designer)

Stone / Diamond Value (₹)

BIS Hallmark Fee ₹45 + 18% GST (₹53.10)

Estimated Bill Total ₹8,460 / g

Total All-Inclusive Payable Price

₹1,01,520

Includes gold metal, making charges, 3% GST & hallmarking

Pure Gold Cost: ₹88,000

Making Charges: +₹10,560

3% GST (1.5% CGST + 1.5% SGST): +₹2,957

BIS Hallmarking (with 18% GST): +₹53

Making Fee Overhead: 10.4% of total bill

Compare making charges across showrooms. Local jewellers often charge 8–12%, whereas brand showrooms charge 14–25%.

Old Gold Scrap Resale Valuation

Fair Market Scrap Math

Old Gold Purity

Gross Weight (Grams)

Melting / Jeweller Scrap Deduction (%)

Reputable jewellers deduct 0%–2% for hallmarked jewellery, and 3%–6% for unhallmarked old gold.

Estimated Old Gold Cash Payout

Fair Cash / Exchange Value

₹1,07,800

Net fair market scrap value

Base Metal Value: ₹1,10,000

Melting / Refine Deduction: -₹2,200

💡 Consumer Tip: When exchanging old gold for new jewellery, demand 100% metal value for BIS Hallmarked gold without arbitrary deduction.

🔍 The 3 Mandatory BIS Hallmark Marks

1. BIS Standard Mark: The triangular logo of the Bureau of Indian Standards confirming certification.
2. Purity / Fineness Grade: 22K916 (22 Karat / 91.6% pure), 18K750 (18 Karat / 75.0% pure), or 14K585.
3. 6-Digit Alphanumeric HUID: Unique Hallmark Identification Code (e.g., AB12CD) laser engraved on every single piece of jewellery. Verify on the official BIS CARE mobile app.

🛡️ How to Avoid Jeweller Overcharges

Always Weigh Without Stones: Jewellers cannot charge gold rate for decorative glass beads or cubic zirconia (CZ). Ensure stones are weighed and billed separately.
Beware of "Wastage" Double Charging: With modern casting and 3D wax machines, actual gold loss during jewellery making is negligible. Do not pay both 15% making charges AND 5% wastage charges.
Insist on Tax Invoice: A formal GST bill with the HUID number protects your ownership title and guarantees 100% buyback value anywhere in India.

Frequently Asked Questions

Why is 22K gold rate lower than the 24K rate in newspapers?

Newspaper and market ticker rates are always quoted for 24 Karat (99.9% pure bullion). 22 Karat contains 22 parts gold and 2 parts copper/silver alloy (91.67% gold). Hence, the 22K rate per gram is exactly $\text{24K Rate} \times \frac{22}{24}$.

Can I negotiate making charges with jewellers?

Yes. Making charges are completely determined by individual retailers and carry the highest profit margins (often up to 30%). Most jewellers will readily discount making charges by 10% to 25% during festive seasons or upon customer request.

What is 1 Tola in grams?

In traditional Indian gold trading, 1 Tola equals exactly 11.6638 grams (often rounded colloquially by jewellers to 10 grams or 11.66 grams).

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