Walking into an Indian jewellery shop without knowing the math is how families end up paying 15-20% more than they should. The bill always seems reasonable at first glance, but the breakdown reveals where your money really goes — and where you're being charged unfairly.
The 5 Components of Every Gold Jewellery Bill
Every legitimate jeweller's bill in India has these components:
- Gold Value — Weight × current rate for that karat
- Wastage Charges — 0-5% (often negotiable, sometimes hidden)
- Making Charges — 8-25% of gold value, or flat ₹/gram
- Hallmarking Fee — BIS certification, ~₹35-45 per piece
- GST — 3% (1.5% CGST + 1.5% SGST) on subtotal
If your bill doesn't show all 5 separately, ask the jeweller to itemize. "Lump-sum pricing" is a red flag.
The Wastage Trap
Wastage charges date back to when goldsmiths handcrafted every piece, and small amounts of gold genuinely got lost during melting and shaping. With modern manufacturing, actual wastage is minimal (under 0.5%), but many jewellers still charge 2-5%.
Fact: Major BIS-hallmarked chains like Tanishq, Malabar, and Kalyan Jewellers have publicly announced zero or transparent wastage policies. Local jewellers may still charge wastage. Always ask, and always negotiate.
Making Charges Explained
Making charges compensate the jeweller for craftsmanship and design. They vary widely:
- Plain gold (chains, bars): 5-10%
- Simple jewellery (rings, earrings): 10-15%
- Detailed designs (necklaces, bangles): 15-25%
- Antique or hand-crafted: 25-40%
If a jeweller quotes 25%+ on simple plain gold, walk away or negotiate. Festival sales (Akshaya Tritiya, Diwali, Dhanteras) routinely offer reduced or zero making charges.
Hallmarking and HUID
Since June 2021, BIS hallmarking is mandatory for all gold jewellery sold in India. Look for:
- BIS logo (triangle with BIS letters)
- Purity grade (916 for 22K, 750 for 18K)
- 6-digit HUID (Hallmark Unique ID)
- Jeweller's identification mark
Without these, you can't verify the gold purity. Hallmarking fee is ~₹35-45 per piece — a small price to pay for guaranteed purity.
GST: The Math Most Buyers Miss
3% GST is calculated on the total invoice value — not just gold value. This includes wastage and making charges. So if your gold value is ₹50,000 and total charges add up to ₹60,000, GST is ₹1,800 (3% of ₹60,000), not ₹1,500.
Within the same state: 1.5% CGST + 1.5% SGST. Between states: 3% IGST. The total is the same.
Use Our Calculator Before Every Purchase
Before signing any jeweller's bill, plug the numbers into our calculator above. If their total matches yours, you're getting fair pricing. If their total is higher, ask why — and don't be afraid to negotiate.
For a deeper understanding of gold prices and weights, visit our main Gold Calculator. To check today's rates, see our live gold price.