How to save money on gold jewellery making charges: Understand these basics to get the best deal this Dhanteras

Imagine you go to a jeweller to buy a simple 22k gold ring and find that both are quoting a different rate. One is offering it at a relatively lower rate than the other. This is because of the making charges, which vary from jeweller to jeweller and even depend on the type of piece you are buying.

Making charges account for design, craftsmanship, and production and can be charged differently by different jewellers. For instance, some might charge it as a fixed amount or a percentage of the gold value. These charges can vary across retailers depending on the intricacy of the design, craftsmanship and pricing structure.

How gold making charges vary across jewellery pieces

Since there is no single rate that applies across all categories, consumers should understand how these charges are calculated before making a purchase. Gold making charges vary depending on the design, craftsmanship and manufacturing process involved.


Samit Guha, Managing Director & CEO, MMTC-PAMP, told ET Wealth Online that they may be charged per gram or as a percentage of the gold value.

“Simple, machine-made chains generally involve lower making charges than intricate or handcrafted pieces such as temple jewellery, where the workmanship and detailing can be more extensive,” he said.

On the contrary, intricate temple jewellery and handcrafted chokers require specialised workmanship compared to machine-made pieces, which is reflected in their making charges. So, consumer may end up paying more in making charges if they decide to buy such a piece of gold jewellery, said Parag Shah, CEO, KISNA Diamond & Gold Jewellery.

However, a decision should not be made simply based on how low a jeweller is asking in making charges. Guha underlined that it is important to look at the overall pricing, including the gold value, making charges and any other applicable costs, rather than evaluating the making-charge percentage in isolation.

Is a lower rate on a heavily marked-up item always a bargain?

Not necessarily. A lower making charge percentage does not necessarily translate into a lower purchase price if other components are higher. This is why you, as a consumer, should compare the final price of a product rather than focusing only on the making charges or the discount.

“The gold rate applied, making charges and other costs can vary across retailers. During occasions such as Dhanteras and Diwali, when promotional offers are common, buyers should check the prevailing gold rate being used, the net weight and purity of the product, and the complete breakdown of charges,” said Guha.

Also check the buyback and exchange terms before making a purchase.

When buying gold coins and bars, it is prudent to consider the overall value of the product, including its purity, declared weight, authenticity and the assurance offered by the refiner.

Is a 'zero making charge' or 'discounted making charge' offer actually a good deal?

Retailers often advertise offers like these, especially during the festive season. However, it is always a good idea to look beyond the headline offer.

Offers like zero or discounted making charges can be attractive, but they should be evaluated against the final price. Guha said consumers should check whether the offer applies to all designs or only selected products, whether any wastage or other charges are applicable, and whether there are conditions attached to the promotion.

It is equally important to understand the retailer's buyback and exchange terms, including any deductions that may apply later.

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Are making charges levied on gold price, or do GST, other costs stack on top?

The price of jewellery typically comprises the net weight of gold multiplied by the prevailing rate for its purity, along with making charges, any wastage applied by the jeweller, the cost of stones, if any, and GST. Making charges may be calculated separately, either per gram or as a percentage of the gold value.

GST on retail gold jewellery is generally charged at 3% on the total transaction value, including the gold value and making charges. However, GST treatment can differ for job-work services, where making charges may attract a separate applicable GST rate depending on the nature of the transaction.

For gold and silver coins and bars, the pricing is based on the prevailing metal rate, weight, purity and the applicable product price. These products do not typically carry traditional jewellery-style making charges.

Therefore, look at the complete invoice and understand the different components of the final price, including applicable taxes, rather than considering the gold rate or making charges in isolation.

How to save money on making charges of gold jewellery

Jewellers usually levy making charges either at a flat rate per gram or as a percentage of the cost of gold jewellery. For example, a retailer can charge Rs 300 per gram for every gram bought or simply levy a flat rate of, let’s say, 12% of the value of gold jewellery.

Given below are a few illustrations indicating which type of making charges are likely to save you more. Here, we have taken the November 5, 2026 rate for 22k gold – Rs 13,435 per gram, and assumed that the weight of the gold jewellery is 10 grams and making charges are either Rs 300 per gram or 12%.

If gold price is Rs 13,435 per gram

PARTICULARS	FLAT RS 300 MAKING CHARGE	12% MAKING CHARGE
Cost of gold jewellery	Rs 13,435 X 10 grams = Rs 1,34,350	Rs 13,435 X 10 grams = Rs 1,34,350
Making charges	10 grams X 300 = Rs 3000	12% of Rs 1,34,350 = Rs 16,122
Total cost	Rs 1,37,350	Rs 1,50,472

(Note: We have not included GST to give a simple understanding.)

Difference in cost: Rs 13,102

If gold price is Rs 15,000 per gram

PARTICULARS	FLAT RS 300 MAKING CHARGE	12% MAKING CHARGE
Cost of gold jewellery	Rs 15,000 X 10 grams = Rs 1,50,000	Rs 15,000 X 10 grams = Rs 1,50,000
Making charges	10 grams X 300 = Rs 3000	12% of Rs 1,50,000 = Rs 18,000
Total cost	Rs 1,53,000	Rs 1,68,000

(Note: We have not included GST to give a simple understanding.)

Difference in cost: Rs 15,000

These calculations suggest that you might save more on gold jewellery if the making charges are levied as a flat charge rather than as a percentage.

Apart from this, consumers can manage making charges more effectively by being mindful of the design and type of jewellery they choose. Since charges vary with design and craftsmanship, simpler designs and machine-made jewellery may offer a more economical option than intricate, handcrafted pieces.

“For consumers purchasing gold primarily for savings or investment rather than jewellery, standardised gold coins and bars are another option to consider,” MMTC-PAMP’s Guha pointed out.