With gold prices high, buyers often focus only on the gold rate. But a jewellery bill also includes making charges, taxes and other costs. Here’s what these charges actually cover.
Buying gold jewellery is not just about paying the day's gold rate. The final bill can also include making charges, other applicable charges and GST. With gold prices remaining high, understanding these additional costs has become especially important for festive-season buyers.
What are making charges?
Making charges are the amount you pay for turning gold into a finished piece of jewellery. They cover the work involved in designing, shaping, cutting, polishing and finishing the jewellery. Intricate or customised designs can generally involve more workmanship than simple designs.
Jewellers may calculate making charges in different ways, as a percentage of the gold value, a fixed amount per gram, or a fixed amount for a particular design. Therefore, two jewellery pieces containing the same quantity and purity of gold can still have different final prices.
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For example, if the gold value of a piece is ₹1 lakh and the jeweller charges 10% as making charges, another ₹10,000 is added before applicable taxes.
What else can be added to your bill?
Making charges are not the only component beyond the gold value. Depending on the jewellery and jeweller, the bill may include charges related to workmanship, wastage or other services. Buyers should therefore check exactly what each charge represents instead of comparing only the gold rate.
Hallmarking is different from making charges. BIS says hallmarking charges do not include making or wastage charges. Hallmarking officially records the purity or fineness of precious metal jewellery.
GST is also added to the transaction. According to the CBIC, when gold jewellery is sold to an end consumer, 3% GST is charged on the total transaction value, whether making charges are shown separately or not.
What should buyers check?
Before purchasing, ask for an itemised bill showing the gold rate, purity, net gold weight, making charges, other applicable charges and GST. Also check the hallmark and HUID details on hallmarked jewellery.
The key point is simple: don't compare jewellery only on the basis of the gold rate. Compare the complete bill and understand how much you're paying for the gold and how much for making and other charges.
Note: BIS increased the hallmarking fee payable by jewellers for a gold article from ₹45 to ₹75 effective September 14, 2026; this is a hallmarking-centre fee and should not be confused with a jewellery making charge.
