Pricing & making charges
How Gold Jewellery Price Is Calculated: Formula and Worked Example
By Narayan Jewellers, Lucknow · Published · Updated
Quick answer: Gold jewellery price = (live gold rate per gram x weight) + making charges + stone value (if any) + GST. Making charges are usually a percentage of the gold value, and GST is added on the total before GST.
The formula
- Gold value = rate per gram for the purity × weight in grams.
- Making charges = a percentage of the gold value (or a per-gram amount, depending on the jeweller).
- Stone value = the price of any stones set in the piece, if any.
- Total before GST = 1 + 2 + 3.
- GST = the GST percentage on the total before GST.
- Price you pay = total before GST + GST.
Worked example at today's rate
Illustrative piece: 10 g of 22K gold with a 10% making charge and 3% GST, at today's 22K rate of ₹12,984.00 per gram. This is a worked example, not a product price.
| Gold value (10 g × ₹12,984.00) | ₹129,840.00 |
| Making charges (10% of gold value) | ₹12,984.00 |
| Total before GST | ₹142,824.00 |
| GST (3%) | ₹4,284.72 |
| Price you pay | ₹147,108.72 |
Rates change during the day, so the figures above update with the market.
On our product pages the same breakup is shown for the actual piece, using that piece's weight, making charge percentage and stone value.
Why two similar pieces can cost differently
- They may differ in weight or purity.
- Detailed work (filigree, mesh, stone setting) usually has a higher making charge.
- Stones add stone value.
Read more about the making charge part in making charges explained, and about the tax part in GST on gold jewellery.
Check it against the bill
The invoice should list weight, purity, rate, making charge, stone value and GST as separate lines. Our guide jewellery bill kaise padhein explains each line. Today's rate is on the live rates page.
Frequently asked questions
Is GST charged on making charges as well?
On a jewellery invoice, GST is calculated on the total before GST, which includes the gold value and the making charges. Check CBIC for the latest rate.
How do I calculate the price of a gold ring or chain myself?
Multiply the per-gram rate by the weight, add the making charge, stone value and GST as shown above.
Why does the product price change during the day?
Because the live gold rate changes, and the gold value follows it.
Sources and official resources
| Source | Use it for |
|---|---|
| Central Board of Indirect Taxes and Customs (CBIC) | GST rates and rules |
| Bureau of Indian Standards (BIS) | Purity and hallmark information |
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