Making charges in India have no official rate. Aditya Birla Capital's guide lists about ₹150 to ₹250 per gram for a plain chain and ₹200 to ₹600 for earrings. GST is 3 percent on the whole bill, making charges included, and making charges are usually not returned when you sell.
For a real rate, IBJA's 22K (916) price on ibjarates.com was near ₹13,600 per gram in the week of 12 October 2026 (₹13,596 on the table we read), before GST and making charges. The calculator starts with that figure, so update it to today's rate and type in each shop's quote.
The other rupee figures on this page are examples to show the sums, and where an example needs a 22K rate we use a round ₹13,500 per gram.
What are making charges, and who decides them?
When you buy a gold necklace, you pay for two things: the gold in it, and the work that went into shaping it. The work is the making charge. It covers the craftsman's labour, the cost of machines and tools, the finishing and polishing, and the jeweller's margin. In the trade you may also hear it called labour, VA (value addition) or just "making".
The jeweller sets the charge, and different shops set it differently. No law fixes the rate. That is why two shops can quote very different totals for the same design, and why comparing the final price per piece is more useful than comparing headline percentages.
How are making charges calculated?
There are three common ways, and you should always ask which one the shop is using.
- Percentage of gold value. The charge is a set percentage of the metal value. If the gold in your piece costs ₹1,00,000 and the making charge is 12 percent, you pay ₹12,000 for making.
- A fixed rate per gram. A flat rupee amount for every gram, for example ₹300 per gram (an example, not a typical rate). On a 10 gram bangle that is ₹3,000, whatever the gold rate does that day.
- A flat charge per piece. A fixed amount for the design, which is common with modern designer jewellery and diamond pieces.
The percentage method has a built-in catch. When the gold rate rises, the rupee amount of your making charge rises with it, even though the craftsman's work has not changed. A per-gram or flat charge does not move with the gold rate.
If the rate is high on the day you shop, a per-gram charge is often kinder to your wallet than a percentage, and the reverse can be true when the rate is low. Do the sum for both before you decide.
How this page and the calculator do the sum: a percentage making charge is taken on the gold value (net weight x rate), before any wastage is added, and GST is then worked out on the total. Shops differ. Some take their percentage on gold plus wastage, or on gross weight, which costs you more, so ask which base your shop uses.
What a percentage looks like in rupees
This table is arithmetic, not a list of typical rates. It shows what each percentage means on gold worth ₹1,00,000.
| Making charge | On gold worth ₹1,00,000 | Making as a share of the total before GST |
|---|---|---|
| 2 percent | ₹2,000 | About 2.0 percent |
| 5 percent | ₹5,000 | About 4.8 percent |
| 10 percent | ₹10,000 | About 9.1 percent |
| 15 percent | ₹15,000 | About 13.0 percent |
| 20 percent | ₹20,000 | About 16.7 percent |
The point of the last column is that the making charge is money you pay once and do not get back as gold. At 20 percent, about a sixth of the price before GST is labour, not metal.
What making charge is reasonable for different jewellery?
There is no official scale, so we only quote figures we could check, with their dates. Aditya Birla Capital's guide to gold jewellery making charges (we checked it on 14 October 2026) lists these per-gram charges:
| Type of jewellery | Making charge per gram (Aditya Birla Capital) |
|---|---|
| Plain gold chain | ₹150 to ₹250 (the guide says machine-made chains attract lower charges) |
| Gold bangles | ₹200 to ₹350 (the guide says handcrafted bangles cost more) |
| Gold rings | ₹200 to ₹450 (the guide says studded rings may carry higher charges) |
| Earrings | ₹200 to ₹600 |
| 18 carat jewellery | ₹400 to ₹800 |
At a gold rate near ₹13,600 per gram, ₹150 to ₹250 per gram on a plain chain is roughly 1.1 to 1.8 percent of the gold value (worked out from the per-gram figure, not stated by the guide).
For a second source, Londe Jewellers in Nagpur published a making-charge survey dated 8 June 2026, when 22K gold was ₹14,160 per gram. For a plain 22K chain it found ₹220 to ₹320 per gram at the old-market sarafa, ₹280 to ₹420 at branded shops and ₹450 to ₹650 in malls.
For a plain bangle pair the figures were ₹280 to ₹380, ₹340 to ₹520 and ₹560 to ₹780. At the survey's own gold rate, a plain chain's charge works out to roughly 1.6 to 4.6 percent of the gold value (worked out from the per-gram figure, not stated by the guide). Londe is itself a jeweller, so treat its figures as one seller's view.
Convert any percentage quote to rupees per gram before you compare. At ₹13,500 a gram, 12 percent is ₹1,620 per gram of making, against ₹150 to ₹650 per gram in both published sources (about 1 to 5 percent). A plain machine-made piece above ₹650 per gram needs an explanation.
Intricate and handmade pieces cost more than plain machine-made ones. Aditya Birla Capital says so for handcrafted bangles and studded rings, and heavy bridal, kundan, polki and temple work is where charges climb, though we found no published figures for those that we could cite.
To compare, ask two or three shops, ideally a local jeweller and a branded showroom, for the same piece quoted as rupees per gram and as a total, then check each quote against the ranges above and in the calculator.
If a plain, machine-made piece is quoted far above these published figures, ask what extra work you are paying for.
What is the difference between machine-made and handmade jewellery?
Machine-made pieces are produced in volume with consistent weight and finish, so the labour per piece is lower and so is the charge. Plain chains, thin bangles and simple studs are typical examples. Handmade or hand-finished pieces take more skilled time and often more cutting and shaping, which raises both the making charge and, in some shops, the wastage charge. Heavy bridal sets, temple jewellery and antique-style pieces are where charges climb.
Neither is better in itself. Machine-made is good value for pieces you will wear often. Handmade is a fair choice when the design is what you are paying for. The mistake is paying handmade prices for a piece that was made by machine, so ask how it was made.
What is wastage, and should you pay it?
Wastage is an old trade practice: a charge added to cover the small amount of gold lost as filings and dust while a piece is worked. Some shops show it as a separate line, sometimes as a percentage of the weight, and others fold it into the making charge.
We found no official rate for it, so treat any figure as the shop's own price. Aditya Birla Capital's guide says making charges can cover the wastage of gold that occurs during manufacturing, which is why you should ask whether wastage is already inside the quote.
The practical advice is this: do not pay wastage and a full making charge as two unrelated items without checking the total. Ask for the net weight, the making charge and any wastage in writing, add them up, and compare the grand total with another shop's.
Some jewellers fold wastage into the making charge, and some charge only one of the two. Either can be fair, but charging both at high levels is how a bill gets quietly inflated.
A quick example, with an example wastage figure: on 10 grams of gold, a 5 percent wastage adds 0.5 grams, so you pay for 10.5 grams of gold before making charges begin. At an example rate of ₹13,500 per gram, that is ₹6,750 extra.
In the calculator, wastage is its own line, added after the making percentage has been worked out on the gold value alone. Some shops take their percentage on the wastage-inclusive amount, which costs you a little more, so ask.
How does GST apply to making charges?
For finished jewellery, GST is 3 percent on the whole bill, making charges included. The CBIC's FAQ on gems and jewellery says GST is payable at 3 percent of the total value of the jewellery, whether or not the making charge is shown separately. Its own example is a ₹30,000 chain with ₹2,000 of making charges: the tax is ₹900, which is 3 percent of ₹30,000.
Own gold is different. If you bring your own gold, GST is extra on the making charge: ask the goldsmith for the rate and get it on the bill. The calculator above has an option for that case; it assumes 5 percent, so change it to the rate on your bill.
So if a jeweller selling you a finished piece shows 5 percent GST on top of the making charge, ask to see how the invoice was worked out. The IBJA rates you see online are without GST and making charges, so they are not the price you pay.
What about customs duty?
It affects the gold rate, not the making charge. Reports say the import duty on gold rose from 6 percent to 15 percent on 13 May 2026 (basic customs duty of 10 percent plus 5 percent AIDC), which is one reason gold prices are higher than they were.
We could not open the CBIC notification to confirm the split, so treat those figures as reported and check CBIC's customs notifications for the rate now in force.
How are stones and other deductions treated?
If a piece has diamonds, coloured stones or pearls, the stone weight is part of the gross weight but is not gold. Make sure the bill shows the gross weight, the stone weight, the net gold weight and the separate price of the stones. You should pay the gold rate only on the net gold weight. Stone charges, and any making charge on the setting, are separate lines.
Ask whether the making charge is calculated on the net gold weight or on the gross weight. A charge on gross weight costs you more, because you pay a percentage on the stones too.
What do you get back when you sell or exchange?
Making charges and GST are generally not recovered. When you sell or exchange old jewellery, jewellers value it on the net pure gold in it at that day's rate, and the labour you paid for is not credited back, so a high making charge is a permanent cost. Some jewellers have exchange policies that differ, so read the buyback terms and ask what deductions apply before you buy, not after.
This is the main reason to prefer lower making charges on plain, daily-wear pieces. If you are buying as a store of value, our 22K vs 24K comparison explains why coins and bars can suit that goal better.
What should you check before you buy?
Use this checklist at the counter. It takes five minutes and can save thousands.
- BIS hallmark. Where hallmarking applies, look for the BIS logo, the purity mark (for example 22K916) and the six-character alphanumeric HUID. Mandatory hallmarking covers the districts BIS has notified: 380 from 2 March 2026, extended by later orders (a Third Amendment Order of 3 August 2026 took it to 392 districts, according to Business Standard), so check the current BIS list for your district. Some pieces and sellers are exempt, so ask rather than assume. BIS raised the gold hallmarking fee to ₹75 per article plus taxes in September 2026 (some BIS pages still show the older ₹45), paid by the jeweller to the assaying centre; check the current fee.
- Verify the HUID. The BIS Care app has a Verify HUID option, and BIS's own site is at bis.gov.in.
- Net weight, in writing. Gross weight, stone weight and net gold weight on the bill.
- The rate used. Compare it with the day's published rate, such as the IBJA benchmark at ibjarates.com, remembering that a jeweller's own rate can differ a little.
- Making charge and how it is calculated. Percentage, per gram or flat, and whether on net or gross weight.
- Wastage. Whether it is charged separately and at what level.
- GST line items. How the 3 percent, and any 5 percent, is shown.
- Buyback and exchange terms. What deduction applies on resale and whether making charges are returned.
- A proper invoice. Keep it, with the hallmark details, for insurance and resale.
Once you have the invoice, a soft jewellery box keeps pieces from scratching each other. Check jewellery boxes and organisers on Amazon
If a hallmarked piece fails a purity test
BIS has a remedy. If hallmarked jewellery is found to be of lesser purity than marked, BIS says the buyer is entitled to two times the money value of the shortfall in purity for the weight sold, plus the testing charges (see the BIS consumer protection page).
The route is to have the piece tested at a BIS-recognised Assaying and Hallmarking Centre, which issues an assay report, and then take that report and your invoice to the jeweller. You can also complain to BIS through the BIS CARE app or at [email protected].
How can you lower what you pay?
- Ask for the making charge to be reduced. Many shops will adjust it, especially on bigger purchases.
- Compare totals at two or three shops, not just percentages.
- Choose simpler designs. Plainer pieces cost less to make.
- Prefer net-weight pricing and avoid paying the gold rate on stones.
- Time the purchase. Some jewellers advertise making-charge offers around Dhanteras and wedding season. Compare any offer on the total, and read our Dhanteras 2026 guide to see what is worth buying that day.
If you are weighing up a specific piece, these go further: how to check the HUID and hallmark before you pay, gold earrings with worked prices, gold chain weight and price examples and our calculator for comparing two shops.
Frequently asked questions
What is a normal making charge for gold jewellery in India?
There is no official or typical rate. Aditya Birla Capital's guide (updated 12 October 2026) lists about ₹150 to ₹250 per gram for plain gold chains and ₹200 to ₹350 per gram for gold bangles, and a Londe Jewellers survey dated 8 June 2026 found plain chains at roughly 1.6 to 4.6 percent of the gold value in Nagpur (Londe is itself a jeweller, so treat its figures as one seller's view). Intricate and handmade pieces cost more. Compare written quotes from two or three shops.
Is the making charge negotiable?
Often, yes. The charge is set by the jeweller, so many shops will reduce it, especially on larger bills. Ask for the total price and compare it with another shop.
Do I pay GST on making charges?
Yes. For finished jewellery, GST is 3 percent on the whole bill, making charges included. If you bring your own gold, GST is extra on the making charge: ask the goldsmith for the rate and get it on the bill.
Do I get making charges back when I sell my jewellery?
Generally no. Jewellers value old gold on the net pure gold content at that day's rate, and making charges and GST are not returned. Read the buyback policy before you buy.
Is hallmarking compulsory?
Not everywhere. Mandatory hallmarking applies in the districts BIS has notified: 380 from 2 March 2026, extended by later orders (a Third Amendment Order of 3 August 2026 took it to 392 districts, according to Business Standard), so check the current BIS list for your district.
BIS lists exemptions, including jewellers with annual turnover up to ₹40 lakh, pieces under 2 grams and Kundan, Polki and Jadau jewellery. Where it applies, a piece should carry the BIS logo, a purity mark and a six-character HUID, which you can verify on the BIS CARE app.
If a hallmarked piece tests below its marked purity, BIS says the buyer is entitled to two times the money value of the shortfall in purity for the weight sold, plus the testing charges (see the BIS consumer protection page).
Your next step: before you visit a shop, write down the net weight of the piece you want, the day's rate from a published source, and ask for the making charge as both a percentage and a rupee total. Then work through our gold price calculation guide with those numbers, and see which names are worth visiting in our jewellery brands comparison.
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