Image Source : PIXABAY Hallmarking charges are mandatory to ensure authenticity.
Gold has deep cultural and economic importance in India. Gold jewellery is more than just a precious possession; it is an investment. It is also a symbol of wealth, status, and prosperity and is considered one of the most preferred options even today. Many Indians invest in gold as part of traditional rituals like weddings and festivals (e.g. Diwali and Akshaya Tritiya). However, buyers are mostly clueless about how the making charges are calculated on gold jewellery.
According to Pawan Gupta of PP Jewellers, many buyers are unaware of how the final price of gold jewellery is calculated. Gupta explains in detail the breakdown of making charges and other factors influencing gold jewellery pricing.
Formula to Calculate Gold Jewellery Price
Final Price = (Price of Gold × Weight) + Making Charges + GST + Hallmarking Charges
The price of gold depends on its purity (24KT, 22KT, 18KT, 14KT, etc.). Higher purity means higher cost.
Hallmarking charges are mandatory to ensure authenticity.
GST is levied on the total cost, including making charges.
Factors Influencing Making Charges
1. Quality & Purity of Gold
22KT and 18KT jewellery have different costs due to varying gold content.
Higher karat gold requires more craftsmanship, increasing the cost.
2. Craftsmanship & Design Complexity
Handcrafted jewellery incurs higher making charges due to intricate detailing.
Machine-made jewellery costs less, ranging from 3% to 25 per cent of the total price.
Studded jewellery with diamonds or gemstones has higher charges due to delicate craftsmanship.
3. Transportation and Handling Costs
Imported gold and designer jewellery involve additional logistics costs.
Custom-made jewellery requires special handling, adding to the overall price.
How Making Charges Are Calculated?
Flat Rate Method: Fixed charge per gram (e.g., Rs 500 per gram for 10g = Rs 5000).
Percentage Method: A percentage of total gold value (e.g., 10 per cent on Rs 7,00,000 = Rs 70,000).
According to Aksha Kamboj – vice president, India Bullion and Jewellers Association (IBJA) – under the percentage-based model, jewellers apply a charge ranging from 8 per cent to 35 per cent of the gold’s value.
Understanding Wastage and Extra Charges
Traditional craftsmanship results in minor gold loss, leading to wastage charges.
Machine-made jewellery has minimal wastage, reducing additional costs.
GST on making charges is 5 per cent and applies to repair services as well.
Key Points to Remember While Buying Gold Jewellery
Check Hallmarking – Ensures authenticity and purity.
Verify Purity – Confirm karat and fineness before purchasing.
Inspect the Bill – Should mention weight, purity, hallmarking, and making charges.
Separate Stone & Gold Weight – Ensure correct pricing for studded jewellery.
Transparency in pricing, hallmark certification, and an understanding of making charges empower buyers to make informed choices. According to Sparsh Arvind Garg, founder of SAR Jewels, As the jewellery industry evolves, brands are now offering more transparent pricing structures, ensuring customers receive fair value for their investments.
