Making Charges
What you pay for craftsmanship on top of the metal, charged either per gram or as a percentage.
A gold bill has two parts: the metal at the day's rate, and the making charge for turning it into jewellery.
Charges run from around 3% on plain machine-made chains to 25% or more on handmade temple, jadau and filigree work, where the labour genuinely is the product.
They are quoted two ways. A flat rate per gram is predictable. A percentage of metal value rises with the gold rate even though the work has not changed.
What you will hear
“Making charges are fixed and cannot be discussed.”
In fact: They are the most negotiable part of a gold bill, especially on higher-value pieces and during festival promotions. The metal rate is not negotiable; the labour usually is.
When you are buying
Always ask for making charges as a separate line, and ask whether they are per gram or a percentage. On a heavy piece the difference between the two quoting methods can be thousands of rupees.
Wastage
An extra percentage added to the gold weight to cover metal lost during manufacture. Often charged even when no metal is lost.
Gold Rate
The day's price of gold per gram at a stated purity. The base every gold bill is built on.
GST on Jewellery
Goods and Services Tax on jewellery in India: 3% on the value of the piece, plus 5% on making charges.
Buyback
What a jeweller will pay to take a piece back. Almost always based on metal content alone.