How is gold jewellery price calculated in India?

Price = (gold rate per gram for the purity × weight) + making charges + wastage + stone charges, plus 3% GST on the total.

What is the GST on gold jewellery?

GST on gold jewellery is 3% on the value of gold plus making charges. Old gold exchanged is not taxed.

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

24K gold is 99.9% pure and is used for coins and bars. 22K (91.6% pure, hallmark 916) is the standard for jewellery because it is harder.

Gold Price Calculator — Jewellery Price with Making Charges & GST

How gold jewellery price is calculated

Rate per gram (purity) = 24K rate per gram × purity ÷ 999 Gold value = Rate per gram × weight Wastage = Gold value × wastage % Making charges = % of gold value, or ₹ per gram, or flat GST = 3% × (gold + wastage + making + stones + hallmark) Final price = Subtotal + GST − old gold value

Example: at a 24K rate of ₹1,20,000 per 10g, 22K gold costs about ₹11,003 per gram. A 10g chain with 12% making charges comes to ₹1,10,030 + ₹13,204 making = ₹1,23,234, plus 3% GST = ₹1,26,931.

Gold purity chart

Karat	Purity	Hallmark	Used for
24K	99.9%	999	Coins, bars
22K	91.6%	916	Most Indian jewellery
18K	75%	750	Diamond and studded jewellery
14K	58.5%	585	Lightweight and daily wear

Frequently asked questions

What are typical making charges?

Usually 6–25% of the gold value, depending on design. Machine-made chains sit at the low end; intricate handmade and temple jewellery at the high end. Some jewellers charge a fixed ₹ per gram instead.

Is hallmarking mandatory?

Yes. BIS hallmarking with a 6-digit HUID is mandatory for gold jewellery sold in India (with small exemptions such as items under 2 grams). The hallmarking charge is about ₹45 per piece.

Is GST charged on old gold exchange?

No. GST applies to the new jewellery you buy. The old gold value is deducted from the final bill.

Where do I find today's gold rate?

Check the IBJA rate or your local jeweller's board. Rates change daily and vary slightly by city.