How gold jewellery price is calculated in India
Price = (gold rate per gram × weight) + making charges, and GST of 3% is added on that total. Making charges are quoted either as a percentage of the gold value (often somewhere between about 8% and 25%, depending on the design) or as a fixed amount per gram. Always compare the final price, not only the gold rate.
Worked example
10 grams of 22K gold at ₹6,900 per gram is worth ₹69,000. With 12% making charges (₹8,280) the price before tax is ₹77,280, and 3% GST adds ₹2,318.40, for a total of ₹79,598.40 — about ₹7,960 per gram.
22K, 24K, 18K and hallmark numbers
The BIS hallmark shows purity in parts per thousand: 999 is 24K (pure gold, used for coins and bars), 916 is 22K (91.6% gold, the most common for jewellery), 750 is 18K and 585 is 14K. If you only know the 24K rate, a 22K rate can be estimated as 24K rate × 916 ÷ 999 — but jewellers publish their own daily 22K rate, which is the one to use.
Tola and 10 grams
Gold rates in India are often quoted per 10 grams, and older family jewellery is sometimes weighed in tola. One tola is 11.6638 grams, so 1 tola of gold at ₹6,900 per gram is worth about ₹80,480 before making charges and GST.
Before you buy
Check the BIS hallmark and HUID code, ask for the net gold weight separately from stones, and confirm how making charges and wastage are shown on the bill. When selling or exchanging old gold, making charges and GST are not paid back, so the amount you receive is based on the gold value only, often after a deduction.