# Gold jewellery price calculator: how the final bill is worked out, 22K against 24K, making charges and 3 percent GST

> Weight times rate is only the start. A line-by-line walk through a jewellery bill: pure gold content by karat, making charges as a percentage, GST at 3 percent, why 10 g of 22K does not cost the same as 10 g of 24K, and what you get back if you sell. Worked in rupees so you can check your own estimate.

Published 2026-10-22 by Toolcloak. 5 minute read. Original: https://toolcloak.com/articles/gold-jewellery-price-calculator-how-the-final-bill-is-worked-out-22k-against-24k-making-charges-and-3-percent-gst
Related free tool: [Gold Jewellery Price Calculator (Karat, Making & GST)](https://toolcloak.com/tools/gold-jewellery-price-calculator)

You pick a necklace. The jeweller weighs it, taps a calculator, and the number on the bill is much higher than weight times the day’s rate. Where did the extra come from? It is not a trick. A jewellery bill has **four parts**: the gold itself, the making charge, the tax, and sometimes stones or wastage. Once you know the order they are added in, you can estimate any quote in a minute and spot the one that does not add up.

> **In short**
> - **Pure gold content = weight × karat ÷ 24.** A 10 g 22K chain holds 9.17 g of pure gold, not 10 g.
> - **The bill = gold value + making charge + 3% GST on the total.** In the worked example, ₹91,667 of gold becomes a ₹1,03,858 bill.
> - **Making charges change the price more than most people expect.** 10% vs 20% on the same chain is a ₹9,400 difference.
> - **Ask for net weight, the hallmark and the itemised bill.** Stones are not gold and should not be paid for at the gold rate.

## The four parts of a jewellery bill

**How a quote is built**

1. **Pure gold weight.** Net weight in grams × karat ÷ 24. This is the gold you are actually buying.
2. **Gold value.** Pure gold weight × the 24K rate per gram. That is what the metal alone is worth.
3. **Making charge.** A percentage of the gold value (or a fixed amount per gram) for the craftsmanship and design.
4. **GST.** 3% of the gold value plus the making charge. The final bill is the sum of all three.

*Some jewellers quote a rate per gram for the karat directly. It works out to the same thing, because a 22K rate is the 24K rate × 22 ÷ 24.*

Try it: [Gold Jewellery Price Calculator (Karat, Making & GST)](https://toolcloak.com/tools/gold-jewellery-price-calculator). Enter the weight, karat, the 24K rate per gram, the making charge percent and GST. It shows the gold value, making charge, GST and final price.

## A worked example: 10 g of 22K gold

Take a 22K chain with a net gold weight of 10 g. For a round example, say the 24K rate is ₹10,000 per gram (use the real rate from your jeweller on the day), making charge is 10 percent and GST is 3 percent.

**10 g of 22K gold, ₹10,000/g for 24K, 10% making, 3% GST (₹)**

| Step | Amount |
| --- | --- |
| Gold value | ₹91,667 |
| Making (10%) | +₹9,167 |
| GST (3%) | +₹3,025 |
| Final bill | ₹1,03,858 |

*Pure gold = 10 × 22 ÷ 24 = 9.167 g. Gold value = 9.167 × ₹10,000 = ₹91,667. Making = ₹9,167. GST = 3% × (₹91,667 + ₹9,167) = ₹3,025. All-in price per gram: ₹10,386.*

The all-in price per gram is **₹10,386**, which is 3.9% above the 24K rate even though the chain is only 22K. That surprises people. The making charge and tax more than cover the gap between 22K and 24K.

## Karat: what 22K, 18K and 14K really mean

A karat is a 24th part. 24K is nearly pure gold. 22K means 22 parts gold and 2 parts other metals such as copper or silver, which make the piece harder and able to hold a design. In India the hallmark shows the same thing as a number: **916** for 22K, **750** for 18K and **585** for 14K, meaning parts per thousand.

| Karat | Hallmark number | Pure gold share | Pure gold in 10 g |
| --- | --- | --- | --- |
| 24K | 999 | 99.9% | 10.00 g |
| 22K | 916 | 91.6% | 9.17 g |
| 18K | 750 | 75% | 7.50 g |
| 14K | 585 | 58.5% | 5.83 g |

*The calculator uses karat ÷ 24, which gives 91.67% for 22K. The hallmark standard rounds it to 91.6%. The difference is tiny.*

**Final bill for 10 g by karat (₹10,000/g for 24K, 10% making, 3% GST)**

|  | Value |
| --- | --- |
| 24K | ₹1,13,300 |
| 22K | ₹1,03,858 |
| 18K | ₹84,975 |
| 14K | ₹66,092 |

*Lower karat means less gold per gram, so a lower bill. It also means a harder piece, which is why 18K is common for studded jewellery.*

## Making charges: the part you can negotiate

The gold rate is the same for everyone that day. The making charge is where shops differ, and it is quoted as a percentage of the gold value or as a flat amount per gram. Simple plain chains often carry a lower rate. Detailed or machine-made designs, antique work and heavy handwork carry more. Ask for it in writing.

**Same 10 g of 22K gold, different making charge (final bill with 3% GST)**

|  | Final bill |
| --- | --- |
| 10% making | ₹1,03,858 |
| 15% making | ₹1,08,579 |
| 20% making | ₹1,13,300 |

*From 10% to 20% adds ₹9,442 to the bill. On a heavier piece the gap grows in proportion.*

- **Compare two shops on the same item with the same karat and weight,** not on the headline rate alone.
- **Ask whether “wastage” is separate.** Some bills show wastage or value-added charges besides making. Add them to the making figure to compare fairly.
- **Ask whether there is a fixed rate or a percent,** and whether it changes with a bigger piece.
- **Making charges are generally not given back** when you sell the piece, so they are a cost of owning it as jewellery.

## GST on gold jewellery

When you buy finished jewellery from a jeweller, GST at **3 percent** applies to the total value including the making charge, even if the making charge is shown separately. On the invoice, within a state it splits into 1.5% CGST and 1.5% SGST; across states it appears as 3% IGST. That is what the calculator does: it applies the GST rate to gold value plus making.

> **Where 5 percent comes from:** A 5 percent rate you may have heard of applies to job work, meaning the labour charge when a registered worker makes jewellery from gold that is supplied to them. If you buy ready jewellery, 3 percent on the whole value is the usual treatment. If you hand over your own gold for making, ask the jeweller how the tax is charged, and ask for it on the invoice. See also [how to add or remove GST without getting it wrong](https://toolcloak.com/articles/how-to-add-or-remove-gst-without-getting-it-wrong).

## If you sell it later: why you do not get the bill back

A jewellery bill is gold value plus making plus tax. A buyer of old gold generally pays only for the **gold content** at that day’s rate, often with a small deduction, and not for the making or the GST you paid. In the example, the gold was ₹91,667 of the ₹1,03,858 you paid, which means the gold price has to rise about 13 percent before you simply break even on selling the chain.

**Break-even on selling, from the worked example**

|  | Value | Note |
| --- | --- | --- |
| Gold value | ₹91,667 | What the metal is worth |
| What you paid | ₹1,03,858 | Including making and GST |
| Rise needed to break even | +13.3% | ₹1,03,858 ÷ ₹91,667 − 1 |

*This is not a reason not to buy jewellery. Weddings, gifts and wearing it are real reasons. It is a reason to judge gold bought for investment and gold bought to wear by different yardsticks, and to see how [inflation](https://toolcloak.com/articles/what-will-one-lakh-buy-in-2046-inflation-in-pictures) and returns compare with an [FD after tax](https://toolcloak.com/articles/fd-at-7-percent-after-tax-and-inflation-what-you-actually-earn).*

## Before you pay: a checklist

1. **Look for the BIS hallmark** and the six-character HUID code on the piece. It proves the karat. You can verify a hallmarked item with the BIS Care app.
2. **Ask for net weight.** Gross weight includes stones, pearls and enamel, which are not gold. Stones are priced separately.
3. **Get an itemised bill** with gold weight, the rate used, making charge, any stone charges, GST and the total.
4. **Check that the rate used is the day’s rate** for that karat, and that it matches the board.
5. **Ask about the exchange and buyback policy** before buying, including what is deducted.
6. **Compare two shops** with the same design and weight using the same formula.

Conversions that come up: one **tola** is about 11.66 g, and one **troy ounce**, used in international prices, is 31.1035 g. If a price is quoted per 10 g, divide by 10 for the rate per gram. The [unit conversion guide](https://toolcloak.com/articles/how-to-convert-units-length-weight-temperature-area-and-volume-and-the-mix-ups-to-avoid) covers the general mix-ups, and the [discount stacking guide](https://toolcloak.com/articles/50-percent-off-plus-20-percent-off-is-not-70-percent-off) is worth a read before you accept a “flat 50% off making charges” offer: work out what it does to the final bill, not just the making line.

## Frequently asked questions

### How is the price of gold jewellery calculated?

Pure gold weight (weight × karat ÷ 24) × the 24K rate gives the gold value. Add the making charge as a percentage of that value, then add 3 percent GST on the total. The result is the final price.

### Sone ke gahane ka rate kaise nikalte hain?

Gahane ka vajan × karat ÷ 24 se shuddh sone ka vajan nikalein, use 24K ke rate se guna karein, usme making charge jodein aur phir total par 3 percent GST jodein. Jeweller ke board par jo rate likha ho wahi use karein.

### What is the difference between 22K and 24K gold?

24K is almost pure gold (99.9 percent) and is soft. 22K is 91.6 percent gold mixed with other metals so that it is strong enough for jewellery. The hallmark number for 22K is 916.

### How much making charge is normal on gold jewellery?

It varies by design, weight and shop. Plain chains and coins carry less, detailed or handmade pieces carry more. Ask for it in writing and compare two shops for the same item.

### Is GST charged on making charges?

When you buy finished jewellery from a jeweller, 3 percent GST applies to the total value, including the making charge. A separate 5 percent applies to job work, which is labour on gold supplied for making.

### Why is 10 g of 22K cheaper than 10 g of 24K?

Because 22K has only 9.17 g of pure gold in 10 g, while 24K has about 10 g. The rest of the 22K weight is other metals.

### What is HUID on gold jewellery?

HUID is the six-character alphanumeric code, unique to each hallmarked piece, that goes with the BIS hallmark. It can be verified on the BIS Care app.

### Do I get back the making charges if I sell my gold?

Generally no. Old gold is valued by its gold content at that day’s rate, often with a deduction. Making charges and GST are part of what you paid, not of what the gold is worth to a buyer.