When you buy gold jewellery in India, the price you pay goes beyond just the gold rate. Making charges, wastage, and GST can add 15-30% to the cost — understanding these components helps you negotiate better.
Making charges are the labour cost for crafting gold into jewellery. They are quoted either as a percentage of gold value (8-25%) or as a flat rate per gram (₹300-₹800/gram). The percentage varies based on design complexity: plain bangles and chains have low making charges (8-12%), while intricate kundan, temple, or polki designs can go up to 25% or more.
Wastage refers to the gold lost during manufacturing — filing, polishing, and finishing. Jewellers typically charge 1-7% wastage on top of the ordered weight. So if you order a 10-gram necklace with 3% wastage, you pay for 10.3 grams.
Machine-made jewellery has significantly lower making charges (sometimes ₹150-250/gram) compared to handcrafted pieces. If budget is a concern, machine-made designs offer better value — but lack the artisanal touch of handmade work.
Negotiation tips: Making charges are negotiable, unlike the gold rate itself. Buy during off-peak months (June-August) when jewellers offer discounts. Ask for a waiver or reduction on wastage. Exchange old gold — many jewellers waive making charges partially on exchange purchases.
GST at 3% is charged on the total amount (gold value + making charges). This is non-negotiable. Some jewellers also charge a "designing charge" or "stone setting charge" separately — always ask for the complete breakup before finalizing.
To verify you are getting a fair deal: check today's per-gram rate on this website, multiply by weight, add the quoted making charges, and compare with the jeweller's total. The gold value component should be within 1-2% of the IBJA benchmark.