Short answer
The gold rate and the jewellery making charge are two different parts of a purchase. IBJA publishes benchmark gold rates by purity, while its public rate page states that the figures are without 3% GST and making charges. A jeweller can therefore start from a gold-rate reference and then add a workmanship charge for turning metal into a finished piece.
Making charges are not a purity measure. A high making charge does not make an item more pure, and a low making charge does not make it less pure. Purity should be checked separately through the carat/fineness mark and, for hallmarked jewellery, the BIS hallmark and HUID.
How making charges are commonly quoted
Jewellers may express workmanship in different ways. The two formats buyers most often encounter are a percentage of the gold value or a rupee amount linked to weight. Some products may also have a fixed design charge. Because the base is different, two advertisements such as “10% making” and “₹900 per gram making” cannot be compared fairly until both are converted into rupees for the same item.
| Charge format | How to compare it | What to ask the seller |
|---|---|---|
| Percentage | Multiply the stated percentage by the stated charge base | What exact value is the percentage applied to? |
| Per gram | Multiply the per-gram charge by the chargeable weight | Is the charge based on gross or net gold weight? |
| Fixed design charge | Add the stated rupee amount | Does the fixed amount replace or sit on top of other labour charges? |
A worked comparison
Assume, only for illustration, that the gold component of an item is ₹100,000. A 12% making charge would be ₹12,000. If another seller quotes ₹1,000 per gram for a 10-gram item, the making charge would be ₹10,000. That does not prove the second seller is always cheaper; the gold rate, net gold weight, stones, other additions and tax basis must also be aligned before comparing the final bill.
GST matters at the invoice level
CBIC’s jewellery sector FAQ gives a useful rule for retail jewellery: GST is payable at 3% of the total transaction value of jewellery, whether the making charge is shown separately or not. This is why a buyer should compare the complete payable amount, not only the board rate or the making-charge headline.
Buyer checklist
- Match the same purity, such as 22K/916 with 22K/916.
- Ask for the net gold weight when stones or non-gold parts are present.
- Convert every making-charge quote into rupees.
- Check whether wastage or any other design charge is added separately.
- Confirm the total transaction value used for GST.
- Ask for an itemised invoice.
- Verify the BIS hallmark and HUID on hallmarked jewellery.
FAQ
Are making charges included in the IBJA gold rate?
No. IBJA states that its published rates are without GST and making charges.
Is a percentage making charge always more expensive than a per-gram charge?
No. The answer depends on the gold value, item weight and the exact basis used by the jeweller. Convert both quotes to rupees for the same item before comparing.
Does a higher making charge mean higher gold purity?
No. Purity and workmanship are separate. Purity should be checked from the carat/fineness mark and the hallmark/HUID where applicable.
