How do I calculate GST on gold jewellery?

It is not a single rate. GST is 3% on the value of the metal and 5% on the making charge when the jeweller itemises it, so a bill with a large making charge carries proportionally more tax than a plain coin. Add the two together. The flat BIS hallmarking fee is a separate line again — ask your jeweller how they bill it, as practice varies.

Does the gold rate shown online include GST?

No. Published rates — ours and IBJA's — are the metal value only, quoted before GST and before any making charge. That is the standard for the Indian bullion market, and it is why the price at the counter is always higher than the rate you looked up in the morning.

How much are making charges on gold?

Usually 8% to 25% of the metal value, and higher for intricate or handmade work. They are the jeweller's labour cost, they differ from shop to shop for identical gold, and they are negotiable. Some jewellers quote a flat rupee amount per gram instead of a percentage.

What is wastage, and could I be paying it twice?

Wastage is an extra percentage some jewellers add for metal lost while working the piece. Many now fold it into the making charge rather than billing it separately. If your quote already includes it there, leave wastage at zero in the calculator — otherwise you will count it twice.

Can I use this for 18K or 24K gold?

Yes. Pick the purity and the calculator applies the right fineness: 22K is 0.916 of the fine rate, 18K is 0.750, and 24K is the fine rate itself. Silver works the same way, with 999 fine and 925 sterling.

What will the jeweller charge?

Today's rate is only the metal. Add the making charge and GST to see the real price.

Weight (grams)

Making charge

Wastage (%) — leave 0 if the jeweller includes it in making

Hallmarking (₹45)

You will pay about

₹1,60,934

22K gold value · 10 g: ₹1,39,177
Making charges · 12%: ₹16,701
Hallmarking: ₹45.00
GST3% on metal, 5% on making: ₹5,010

Based on today's 22K gold rate of ₹13,918/g. An estimate — your jeweller sets their own making charge.

Rates are the metal value only — they exclude GST and the jeweller's making charges. For information, not investment advice. Confirm the live price with your jeweller before you buy.

Making charges are negotiable

They are the jeweller's labour cost — usually 8% to 25%, and higher for intricate work. On 10 g of 22K gold, the gap between a 10% and a 20% making charge is over ₹13,000. That is worth asking about.

If your jeweller already includes wastage in the making charge, leave wastage at zero — otherwise you will count it twice.

GST on gold is not a flat 3%

This is the single most common mistake on a jewellery bill, and it works against you in both directions. There are two different GST rates on the same purchase:

3% on the value of the metal — the gold itself, whether you are buying a coin, a bar or a necklace.
5% on the making charge — the jeweller's labour, taxed as a service when it is billed as a separate line.

So two pieces of identical weight and purity carry different tax if their making charges differ. The BIS hallmarking fee of about ₹45 per article is a flat charge on top, and the calculator shows it on its own line rather than folding it into either rate.

What 10 grams actually costs, line by line

A worked example for 10 g of 22K gold at a making charge of 12%. The rate below is a round ₹10,000 per gram chosen to keep the arithmetic simple — it is not today's rate. Put the real one into the calculator above.

Line	Amount
Metal value10 g × ₹10,000	₹1,00,000
Making charge12% of the metal value	₹12,000
Hallmarkingflat BIS charge per article, billed as its own line	₹45
GST on the metal3% of the metal value	₹3,000
GST on the making charge5% of the making charge	₹600
What you paymetal + labour + tax	₹1,15,645

The metal is ₹1,00,000 of that bill. Everything else — ₹15,645— is labour, tax and the hallmark. That gap is far larger than any difference between one city and the next, which is why we publish a calculator instead of a “gold rate in your city” page.

Gold price and GST — common questions

How do I calculate GST on gold jewellery?: It is not a single rate. GST is 3% on the value of the metal and 5% on the making charge when the jeweller itemises it, so a bill with a large making charge carries proportionally more tax than a plain coin. Add the two together. The flat BIS hallmarking fee is a separate line again — ask your jeweller how they bill it, as practice varies.
Does the gold rate shown online include GST?: No. Published rates — ours and IBJA's — are the metal value only, quoted before GST and before any making charge. That is the standard for the Indian bullion market, and it is why the price at the counter is always higher than the rate you looked up in the morning.
How much are making charges on gold?: Usually 8% to 25% of the metal value, and higher for intricate or handmade work. They are the jeweller's labour cost, they differ from shop to shop for identical gold, and they are negotiable. Some jewellers quote a flat rupee amount per gram instead of a percentage.
What is wastage, and could I be paying it twice?: Wastage is an extra percentage some jewellers add for metal lost while working the piece. Many now fold it into the making charge rather than billing it separately. If your quote already includes it there, leave wastage at zero in the calculator — otherwise you will count it twice.
Can I use this for 18K or 24K gold?: Yes. Pick the purity and the calculator applies the right fineness: 22K is 0.916 of the fine rate, 18K is 0.750, and 24K is the fine rate itself. Silver works the same way, with 999 fine and 925 sterling.