The comparison rule
A per-gram making charge and a percentage making charge use different units. The safest way to compare them is to convert both to a rupee amount for the same purity, same net gold weight and same gold-rate basis. Only then should the complete invoice be compared.
IBJA separates its benchmark gold rates from making charges. This is useful because it lets the metal value be treated as one layer of the bill and workmanship as another.
Example: percentage charge
Suppose the gold component used for the calculation is ₹120,000 and the jeweller quotes a 10% making charge. The making amount is ₹12,000 before considering the rest of the invoice.
Example: per-gram charge
Suppose a second jeweller quotes ₹950 per gram and the chargeable gold weight is 12 grams. The making amount is ₹11,400. The difference is only ₹600 in this hypothetical example, so a small change in gold rate, weight, stone value or another fee could reverse which invoice is lower.
| Example | Basis | Making amount |
|---|---|---|
| Percentage quote | 10% of ₹120,000 | ₹12,000 |
| Per-gram quote | ₹950 × 12 g | ₹11,400 |
The numbers above are examples, not market quotations.
What can make the comparison misleading?
A buyer can get the wrong answer if one seller uses gross item weight while another uses net gold weight, if the underlying gold rate is different, or if one quote includes another design/wastage charge. Ask both sellers to show the components on the same basis.
Add GST only after understanding the bill
For retail jewellery, CBIC states that GST is 3% of the total transaction value of jewellery whether the making charge is shown separately or not. The point is important: simply adding 3% to only the raw gold component does not reproduce the rule in the CBIC jewellery FAQ.
A practical comparison worksheet
| Item | Jeweller A | Jeweller B |
|---|---|---|
| Purity | 22K / 916 | 22K / 916 |
| Net gold weight | ____ g | ____ g |
| Gold-rate basis | ₹____ / g | ₹____ / g |
| Metal value | ₹____ | ₹____ |
| Making charge | ₹____ | ₹____ |
| Stones / non-gold value | ₹____ | ₹____ |
| Total transaction value before GST | ₹____ | ₹____ |
| Final payable amount | ₹____ | ₹____ |
When each format can change with the gold rate
A percentage charge moves automatically when the gold-value base moves. If the percentage stays the same but the gold rate rises, the rupee making amount can rise as well. A per-gram charge is linked more directly to the chargeable weight, although the jeweller can still revise the per-gram number over time. This is why an old advertisement or social-media post should not be treated as a current quote.
For high-value pieces, even a small percentage difference can become a large rupee difference. For light pieces, a high per-gram figure can sometimes matter more. The only reliable comparison is to use the same item specification and calculate the rupee charge on the day you are buying.
If a seller offers a “zero making charge” promotion, ask which other parts of the invoice still apply. The metal rate, stone value, product premium or other commercial terms can still make the final payable amount different from another shop’s quote.
FAQ
Which making-charge format is better?
Neither format is automatically better. What matters is the rupee making amount and the final bill for the same product specification.
Should I compare jewellery using only the making-charge percentage?
No. A lower percentage can still produce a higher bill if the seller uses a higher gold-rate basis or adds other components.
Where can I verify the jewellery purity?
BIS explains that the hallmark includes the BIS mark, purity in carat/fineness and a six-digit HUID that can be checked in the BIS Care app.
