Making Charges and Wastage: What You Really Pay for Gold Jewellery
The price is more than the gold rate
When you buy jewellery, the bill has the value of the gold plus making charges, plus GST. Two shops showing the same gold rate can quote very different final prices because of making charges.
Making charges and wastage
Making charges pay for the labour and design. They are usually a percentage of the gold value or a fixed amount per gram, and intricate or handmade designs cost more. Some shops also quote “wastage” (called sethaaram in Tamil), the gold lost while crafting. Ask whether the shop quotes making charges, wastage, or both, so you do not pay twice for the same thing.
How the final bill is calculated
Gold value = weight × rate per gram for that purity. Add making charges as a percentage of the gold value. Add 3% GST on the total of gold value and making charges. Our jewellery calculator on every rate page does this for you using the latest rate.
Tips to save money
Compare the total price including making charges across two or three shops, not just the per-gram rate. Ask about the exchange policy for old gold and whether making charges are deducted when you sell back. Prefer simpler designs, which have lower making charges, and always ask for an itemised invoice with the hallmark number.