Gold price and jewellery bill guide: every rupee explained
A gold bill rarely equals the metal value, and that gap is where most confusion happens. Two pieces of the same weight and purity can carry very different totals, because making charges, wastage and stones are billed separately from the metal. This calculator shows each component on its own line so you can see exactly what you are paying for, convert a 24K rate down to the purity you are buying, and apply GST on the base your accountant expects. It is built for jewellery buyers checking a quote and for jewellers pricing a new piece.
Start from the metal value, not the final price
The gold value is simply the rate per gram for the purity you are quoting, multiplied by the net weight in grams. Everything else in the bill sits on top of it. Indian jewellers publish rates per gram for the purity they sell — usually 22K — rather than quoting 24K, so enter the rate that matches your purity choice. If you only know the 24K rate, the purity converter on this page derives the rest by scaling on the hallmark percentages: 24K is 99.5% pure, 22K is 91.6%, 18K is 75% and 14K is 58.5%. Note that these are the certified figures, which is why a 24K rate of ₹7,400 converts to roughly ₹6,800 for 22K rather than an exact round figure.
Making charges and wastage are two different things
Making charges pay for the craftsmanship: the design, the labour, the soldering and setting of stones. Shops quote it three ways, and this calculator accepts all of them — a percentage of the gold value, a fixed rate per gram, or a flat amount for the piece. Wastage is different: it compensates for the small quantity of gold unavoidably lost during melting, filing and polishing, commonly quoted as 1–3%. Both are added to the metal value, but they are not interchangeable, and a quote that bundles them into one line is harder to compare against another shop. Ask for them stated separately.
GST on gold is 3%, but the base depends on the invoice
Gold, gold jewellery and precious stones attract a special GST rate of 3% in India. On an intra-state sale that is 1.5% CGST and 1.5% SGST; on an inter-state sale it is a single 3% IGST. What is less settled is the base the rate applies to. Many jewellers bill 3% on the gold value only, treating making charges as untaxed job work. Others treat the whole supply as the taxable value and charge GST across gold, making, wastage and stones. Both readings exist in practice, so rather than pick one silently, the calculator asks you to choose and shows a clear note when you add charges that it is not taxing. This is the single line most worth checking with your accountant before you bill a large piece.
| Component | Added to the bill | Taxed under "Gold value only" | Taxed under "Full invoice value" |
|---|---|---|---|
| Gold value (rate × grams) | Yes | Yes | Yes |
| Making charges | Yes | No | Yes |
| Wastage | Yes | No | Yes |
| Stones and diamonds | Yes | No | Yes |
| GST applied at | 3% | 3% of the gold value | 3% of the whole taxable value |
Reading the final number against a real bill
The effective rate per gram in the result is the number that makes two quotes comparable. A shop quoting a lower rate per gram but a heavier making charge can still land on a higher total, and comparing only the headline gold rate is the most common way buyers get surprised at the counter. Check that the weight on the bill is net weight of gold and not the gross weight including stones, ask for the BIS hallmark certificate, and confirm the rate used is recent — gold moves daily and published rates vary by city. On the invoice itself, use HSN 7108 for gold in unwrought or semi-manufactured form and 7113 for finished jewellery, with 711319 for gold jewellery specifically.
Where the rate comes from, and why it is not automated
Every published rate is the metal alone: the 3% GST and the making charge land on top of it before anything reaches a bill. IBJA, the Indian Bullion and Jewellers Association, publishes the benchmark rate twice a trading day and it is the figure jewellers and lenders quote against, so the calculator links straight to it and to a city rate search for anyone buying closer to home. Two things to know when you read a rate: IBJA does not publish on Saturdays, Sundays or exchange holidays, so an older number on a Monday morning is normal rather than an error. And the rate you see is a starting point, not the price you pay — a jeweller adds making charges, and small pieces often carry a premium on the metal.
Working backwards from a budget
The most useful question at a jewellery counter is often the reverse one: you have ₹1,00,000 and want to know what that actually buys, because making charges, wastage and GST all come out of it before any gold reaches you. The calculator runs that in reverse — it takes your budget, deducts stones and any flat charges, divides what is left by the true per-gram cost of the metal including its percentage charges and 3% GST, and returns the net weight. It shows that weight in grams, tola and pavan, since Indian gold is quoted by tola even though it is invoiced by gram. Note that a fixed-price design and a per-gram quote are not directly comparable: the fixed price already contains whatever making charge the jeweller built in, which is precisely what this mode makes visible.
For jewellers pricing a piece
Work through the calculator in the order a customer will ask the questions: rate, weight, making charge, wastage, stones, then GST. The copy button puts the full breakdown on your clipboard in the order it belongs on a bill, including the amount in words, which is required on invoices above ₹1,00,000. Because the calculator is static and free, it is equally usable at the counter during a quote and as a reconciliation check against a billing system later.
How to use this tool
- Choose the purity — 24K, 22K, 18K or 14K — and enter the rate per gram. It is remembered for next time.
- Pick a mode: price a piece by weight, or find how much gold a budget buys.
- For a bill, enter the net weight in grams, tola, pavan or kilograms.
- Add making charges as a percentage, per gram, or a flat amount.
- Add wastage as a percentage or a flat amount, plus stones and other charges.
- Choose the GST base and whether the sale is inter-state, then read the total.
Example scenario
10 g of 22K gold at ₹6,800 per gram is ₹68,000 of metal. With 8% making charges (₹5,440), 2% wastage (₹1,360) and 3% GST on the full ₹74,800 taxable value, the bill comes to ₹77,044. Run the same numbers backwards and a ₹1,00,000 budget buys about 13.37 g, which is 1.15 tola.
Note: Gold and jewellery attract 3% GST, and the way making charges and stones are treated can vary between billing practices. Confirm the applicable rate and base for your own invoices, and use the current rate from your jeweller rather than an older quote.
Frequently asked questions
How is gold jewellery price calculated in India?
A jewellery bill stacks four parts. Gold value is the rate per gram for the purity multiplied by the net weight in grams. Making charges are added for workmanship, usually a percentage of the gold value or a fixed amount per gram. Wastage covers the gold lost during manufacturing, commonly 1–3%. GST is then applied at 3% on the taxable value.
What GST rate applies to gold jewellery?
Gold, gold jewellery and precious stones attract a special GST rate of 3% in India, split as 1.5% CGST and 1.5% SGST on an intra-state sale, or charged as a single 3% IGST on an inter-state sale. Making charges are job work and are sometimes taxed separately at a higher rate, so check which base your accountant expects.
Should I choose "Gold value only" or "Full invoice value" for GST?
It depends on how your invoice presents the supply. Many jewellers bill 3% on the gold value only, under Notification 25/2017-Central Tax (Rate) for precious metal, and treat making charges as untaxed job work. Others treat the whole supply as taxable value and charge GST on gold plus making charges, wastage and stones. The calculator shows both, and flags when charges are added but not taxed.
How do I convert a 24K gold rate to 22K or 18K?
Multiply the 24K rate by the ratio of the purities, using the hallmark-certified percentages: 24K is 99.5% pure, 22K is 91.6%, 18K is 75% and 14K is 58.5%. So a 24K rate of ₹7,400 per gram is about ₹6,800 for 22K. The purity converter on the page does this for you and loads the result straight into the calculator.
What is the difference between making charges and wastage?
Making charges pay for the craftsmanship of converting raw gold into the finished design. Wastage compensates for the small amount of gold lost during manufacturing, melting and polishing, usually quoted as 1–3% of the gold value. Both are added to the metal value, but making charges can be a percentage, a per-gram rate or a flat amount per piece.
Which HSN code do I use for gold jewellery on an invoice?
Use HSN 7108 for gold in unwrought or semi-manufactured form such as bars and coins, and 7113 for finished jewellery, with 711319 for gold jewellery specifically. If you bill making charges as a separate job-work line, that is a service and uses SAC 9988.
How much gold can I buy for a fixed budget?
Switch the calculator to "How much gold" mode and enter your budget. It works backwards through making charges, wastage, stones and 3% GST to tell you the net weight you actually receive, in grams, tola and pavan. This is the number to compare when a jeweller quotes a fixed price for a design rather than a rate per gram.
What is a tola and a pavan, and how many grams are they?
One tola equals 11.6638 grams and one pavan equals 8 tolas, which is 93.3104 grams. Indian gold is commonly quoted by tola or pavan even though the hallmark and the GST invoice are always in grams, so the calculator converts between all four units for you.
Where can I check today's gold rate for India?
IBJA (the Indian Bullion and Jewellers Association) publishes the daily benchmark rates that jewellers and lenders actually price against, with morning and afternoon fixings for every purity — that is the link at the bottom of the calculator. For a rate closer to your own city, search your local market rate. Both publish the metal rate only, without the 3% GST or making charges.
Is the gold rate in this calculator live?
No, and that is deliberate. Gold rates change several times a day and differ by city and jeweller, so you enter the rate from your own board or bill. The links in the calculator take you straight to IBJA or a city rate page, and the rate and purity you last used are saved on your device so you only type them once.
How much making charge is normal for gold jewellery?
It varies by design complexity and by jeweller. Simple bangles and chains commonly fall between 5% and 15% of the gold value, while intricate temple jewellery or heavy work can run much higher. Some shops quote a flat amount per gram instead. Always ask for the making charge to be stated separately from the metal value, so you can compare two quotes fairly.
Still unsure about the rate or your situation?
Every jewellery business bills differently. If you are unsure which GST base applies to your invoice, email rautprajwal36@gmail.com with your bill structure and we will help you work it out.