How Gold Jewellery Prices Are Decided: Making Charges, GST & Hallmarking — AT Jewels

Sunday, 06 September 2026 — a quiet market morning, so instead of a rate I want to answer the question I get asked across the counter more than any other: how is the price of my gold jewellery actually worked out? Once you understand the four parts that make up the final bill, you shop with a lot more confidence.

1. It starts with purity — 24K, 22K or 18K

Gold is soft in its purest form, so jewellery is almost never made from 24K (99.9% pure). Instead it is alloyed for strength. 22K is about 91.6% gold (the classic choice for traditional Indian jewellery), 18K is 75% gold (favoured for diamond and everyday designs because it's harder and holds stones better), and 14K is roughly 58.5% gold. The higher the karat, the more gold you're paying for — so the very first thing that decides your rate is which purity the piece is made in. When you see a "gold rate today", it's usually quoted for 24K and 22K; the price for your actual piece is scaled to its purity.

2. The metal value — rate × weight

The heart of the bill is simple arithmetic: the day's rate for that purity, multiplied by the weight of gold in grams. If a chain weighs 10 grams and it's 22K, the metal value is the 22K per-gram rate times ten. This is why a good jeweller will always weigh the piece in front of you and show you the weight and the rate used. Two pieces that look similar can cost very differently simply because one is heavier — weight is doing most of the work in the final number.

3. Making charges — the part worth understanding

Making charges (also called wastage or labour) pay for turning raw gold into a finished design — the craftsmanship, the mould, the polish, the stone-setting. They're usually charged either as a percentage of the metal value (commonly in the 8–25% range, indicative and varying widely by design) or as a flat rate per gram. Intricate, handcrafted or filigree work costs more to make than a plain, machine-made band, so a higher making charge on an elaborate piece is normal — you're paying for genuine work. The two honest questions to ask are always: what is the making charge, and is it a percentage or per gram? A transparent jeweller answers both without hesitation.

4. GST — a flat 3% on gold jewellery

On top of metal value plus making charges, gold jewellery in India carries 3% GST (indicative; tax rules can change). It's a standard, government-set tax that applies everywhere, so it's not a place where quotes should differ — if one seller shows GST and another quietly folds it in, ask for an itemised bill so you're comparing like with like. A clear invoice always shows metal value, making charges and GST as separate lines.

5. The proof it's real — BIS hallmark & HUID

None of the above matters if the purity isn't genuine, which is where hallmarking comes in. A BIS-hallmarked piece carries the BIS mark, the purity/fineness (like 916 for 22K or 750 for 18K), and a 6-digit alphanumeric HUID (Hallmark Unique Identification). You can verify a HUID through the official BIS Care app, which tells you the jeweller and purity registered against that number. Always insist on a hallmarked piece and a proper tax invoice — together they're your guarantee that the karatage you paid for is the karatage you're wearing.

Putting it together

So the next time you look at a quote, read it in four parts: purity, weight, making charge and GST — with a hallmark to back it up. When all four are shown to you plainly, you can compare any two jewellers fairly. At AT Jewels we keep every one of these on the table for you, because a confident buyer is a happy buyer.

This weekend's featured pieces

14K Rose Gold Diamond EarringsFrom ₹31,586★★★★★Delicate rose-gold studs — a customer favourite for everyday wear. 14K Rose Gold Diamond EarringsFrom ₹40,800★★★★★A little more sparkle for festive and gifting occasions. 14K Yellow Gold Diamond RingFrom ₹36,732★★★★★Classic yellow-gold ring with a well-set solitaire look. 14K Yellow Gold Diamond PendantFrom ₹21,850★★★★★A versatile pendant that dresses up or down with ease. 14K Yellow Gold Diamond PendantFrom ₹19,718★★★★★Everyday elegance in warm yellow gold. 14K Rose Gold Diamond PendantFrom ₹8,055★★★★★A lovely first-diamond piece or thoughtful little gift.

Why buyers love these: Each piece here is set in 14K gold with genuine diamonds, so the making and stone-setting quality is exactly the kind of craftsmanship those making charges pay for. They're the sort of everyday-to-festive designs families reach for again and again — and every one comes properly hallmarked, so you know precisely what you're buying.

Frequently asked

How is the gold jewellery price calculated in India?
It's the day's gold rate for the piece's purity (24K/22K/18K) multiplied by its weight in grams, plus making charges (indicative 8–25% of metal value, varies), plus 3% GST on the total. A clear invoice shows each of these separately.

What are making charges on gold and are they fixed?
Making charges are the labour and design cost of turning raw gold into a finished piece. They're not fixed — they vary by design complexity and jeweller, charged either as a percentage of metal value or a flat rate per gram. Intricate handmade work costs more than plain machine-made designs.

How do I check if my gold is genuinely hallmarked?
Look for the BIS mark, the purity number (916 for 22K, 750 for 18K) and a 6-digit alphanumeric HUID on the piece, then verify the HUID in the official BIS Care app. Always ask for a proper tax invoice alongside it.

— Nitin Bardia / AT Jewels