The final price of gold jewellery has three parts: gold value (metal), making charges (labour, design, wastage), and GST. Making charges can be a percentage of gold value or a flat rate per gram. This guide explains both and shows how to use our gold calculator to get the total bill.
The basic formula
Final jewellery price = Gold value + Making charges + GST. Gold value = (gold rate per gram for your karat) × weight in grams. Making charges are then added on top of this gold value. GST in India is typically 3% on gold jewellery and is applied on the subtotal (gold value + making charges).
Percentage-based making charges
Most jewellers quote making charges as a percentage of the gold value. For example, 10% making on ₹1,00,000 gold value = ₹10,000 making charges. Simple pieces might be 5–10%; intricate or designer pieces can go up to 15–30%. Always ask whether the percentage is on the gold value only (common) or on something else.
Formula: Making charges = Gold value × (Making charge % ÷ 100). Subtotal = Gold value + Making charges. Then GST = Subtotal × 0.03 (for 3%).
Flat rate per gram
Some jewellers charge a fixed amount per gram (e.g. ₹350 per gram). Then making charges = (rate per gram) × weight. This is easier to compare across pieces of the same weight but can feel high on heavy ornaments. Our calculator supports both percentage and flat making charges.
Worked example
Suppose you buy 20 grams of 22K gold at ₹6,000 per gram (22K rate), with 10% making charges and 3% GST:
- Gold value = 6,000 × 20 = ₹1,20,000
- Making charges (10%) = 1,20,000 × 0.10 = ₹12,000
- Subtotal = 1,20,000 + 12,000 = ₹1,32,000
- GST (3%) = 1,32,000 × 0.03 = ₹3,960
- Final price = ₹1,35,960
You can plug the same numbers into our gold karat calculator and adjust making charge % or weight to see how the final price changes.
What making charges cover
Making charges typically cover labour, design and craftsmanship, wastage (some gold lost during making), and sometimes polishing and finishing. Fancy or custom designs cost more. Comparing making charges across 2–3 jewellers helps you get a fair deal.
Always get a detailed bill showing gold weight, purity, rate per gram, making charges (percentage or flat), and GST. It keeps the calculation transparent and helps when you use a gold making charges calculator.
— Gold Karat Calculator