When buying gold jewellery, many customers focus only on the gold rate per gram. However, the final price often feels much higher than expected — largely due to making charges on gold. Understanding what making charges are, how they’re calculated, and what range is considered reasonable can help you make a smarter purchase and avoid overpaying.
This guide explains everything clearly, using verified facts from trusted Indian financial and jewellery sources.
What are Making Charges on Gold Jewellery?
Making charges are the labour costs charged by jewellers for converting raw gold into finished jewellery. These charges cover:
- Craftsmanship and labour
- Designing and casting
- Polishing and finishing
- Stone setting (if applicable)
Making charges are separate from the gold price and can vary significantly depending on the jewellery design and the jeweller.
How Are Gold Making Charges Calculated?
Jewellers calculate gold making charges in two common ways:
Percentage-Based Making Charges
Most jewellers charge making fees as a percentage of the gold value.
Verified sources show that:
- Making charges typically range from 3% to 30% of the gold value
- Common market range is 5% to 25%
- Simple designs usually attract lower charges, while intricate designs cost more
Flat Making Charges Per Gram
Some jewellers apply making charges as a fixed amount per gram instead of a percentage.
- Typical flat rates range from ₹300 to ₹1000 per gram, depending on design and brand positioning.
So, How Much Making Charge is Reasonable?
Based on verified data, a reasonable range for making charges on gold jewellery is:
- 5%–10% → Simple chains, bangles, plain rings
- 10%–20% → Moderately designed earrings, pendants
- 20%–30% → Heavy, intricate, or designer jewellery
If a jeweller charges significantly above this range, it’s advisable to compare prices with other stores or negotiate.
What is the Role of BIS Hallmark in Making Charges?
The BIS hallmark certifies the purity of gold, not the making charges.
In India, gold hallmarking is regulated by the Bureau of Indian Standards (BIS). A BIS-hallmarked gold item confirms:
- Purity (e.g., 22K = 91.6% purity)
- Jeweller registration
- Assay certification
While the BIS hallmark does not control making charges, it ensures you’re paying for genuine gold, not inflated purity claims.
BIS Hallmarking Charges in India
- BIS hallmarking charges are fixed
- Approximate cost: ₹45 per jewellery article (excluding taxes)
- This fee is not weight-based and is usually included in the final bill
How is the Final Gold Jewellery Price Calculated?
The total price of gold jewellery is calculated using this formula:
(Gold Price per Gram × Weight) + Making Charges + 3% GST
This means:
- Making charges directly increase the base price
- GST (3%) is applied on both gold value and making charges
GST on Making Charges on Gold
- Gold jewellery in India attracts 3% GST
- GST is calculated on:
- Gold value
- Making charges combined
How to Avoid Overpaying Making Charges on Gold
To ensure you’re paying a reasonable price:
- Always ask whether making charges are percentage-based or per gram
- Compare making charges across multiple jewellers
- Prefer BIS hallmark jewellery for purity assurance
- Choose simpler designs if budget is a concern
- Ask for a complete price breakup on the invoice
Final Thoughts: What is a Fair Making Charge?
There is no single fixed rule, but based on verified industry data:
- 5%–20% is considered reasonable for most everyday gold jewellery
- Higher charges should be justified by craftsmanship, complexity, or brand value
Understanding making charges on gold empowers you to shop confidently and ensures transparency in every gold jewellery purchase.