The gold rate gets all the attention, but it is only one of four numbers that decide what you actually pay for a piece of jewellery. The other three — wastage, making charges and GST — are where bills quietly inflate, and where a little knowledge saves real money. Here is how an Indian gold bill is built, line by line.
1. Metal value
This is the rate for the day multiplied by the weight, adjusted for purity. For a 22K piece, the jeweller uses the 22K (916) per-gram rate, not the 24K rate. So a 10-gram 22K chain is priced at ten times the 22K per-gram rate. This is the one part of the bill that is not negotiable — it is set by the market — but you should still confirm the jeweller is using the correct purity rate and an accurate weight on a tared scale.
2. Wastage
Wastage (sometimes shown as “VA” or wastage percentage) is an extra charge meant to cover gold lost during crafting. Historically it reflected real loss in handmade work; today, with machine-made jewellery, much of it is margin. It is typically charged as a percentage of the metal weight — often 3–8% for machine-made chains and rings, and higher for intricate, antique or handmade designs. This line is negotiable, and for plain machine-made pieces you should push back if it looks high.
3. Making charges
Making charges are the labour cost of turning gold into a finished piece. They are quoted two ways — as a percentage of the metal value (commonly 8–25%) or as a flat rate per gram — and the method matters: a percentage charge rises with the gold rate, while a per-gram charge does not. Simple machine-made designs sit at the bottom of the range; elaborate, hand-crafted, antique, temple or kundan work sits well above it. Like wastage, this is negotiable, and comparing quotes across jewellers for a similar design is the best leverage you have.
4. GST
Finally, GST is added: 3% on the value of the gold (metal plus wastage) and 5% on the making charges. This is a statutory charge and is not negotiable, but it should appear as a clear line on a proper tax invoice. If a jeweller offers to skip the bill to “save GST,” walk away — you lose your hallmark protection, your proof of purchase and your resale standing for a small, illegal discount.
A worked example
Take a 10-gram 22K chain. The metal value is ten times the 22K rate. Add, say, 5% wastage on the metal, then 10% making charges, then 3% GST on the gold portion and 5% GST on the making. The making and wastage together can easily add 15–18% over the bare metal cost — which is why two chains of identical weight and purity can carry very different price tags. The jewellery bill calculator itemises all four lines for you, so you can see exactly where the money goes and test a lower wastage or making figure before you negotiate.
The questions to ask
Before you pay, ask four things: What is the per-gram rate and purity? What is the wastage percentage? Are making charges a percentage or a flat per-gram figure? And is GST shown separately on the invoice? Get those four answers and you have seen the whole bill. Confirm the live rate for your city, check the BIS hallmark and HUID, and you are buying on your terms rather than theirs.