Gold Price Calculator: 24K vs 22K, Making Charges & GST (2026)
📅 July 2026⏱ 9 min read✍️ ToolLoom Editorial
The number on the jeweller's rate board is only the starting point. Purity, making charges, and 3% GST all stack on top before you reach the final bill — and not knowing how each piece works is how buyers overpay. Here's exactly how gold jewellery pricing works in India.
Gold jewellery price isn't just "today's gold rate × weight." Four separate components stack together to form the final bill, and each varies independently — which is exactly why the same weight of gold can cost noticeably different amounts at two different jewellers.
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Base Gold Rate
Tracks international bullion prices, published daily by jewellers' associations and banks.
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Purity (Karat)
24K, 22K, 18K or 14K — lower purity means a lower price per gram for the same weight.
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Making Charges
Labour/craftsmanship cost — the most variable component, from 3% to 25%+ of gold value.
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GST (3%)
Applied on the combined gold value + making charges.
Gold Purity Explained — 24K, 22K, 18K, 14K
Karat measures purity out of 24 parts. Pure gold (24K) is very soft and impractical for daily-wear jewellery, so it's alloyed with metals like silver, copper, or zinc to increase durability — reducing the karat rating in the process.
Purity
Gold Content
Common Use
24K
99.9% pure
Coins, bars, investment gold — too soft for daily-wear jewellery
22K
91.6% pure
Most traditional Indian jewellery — the default standard
18K
75.0% pure
Diamond-studded and Western-style jewellery, more durable
14K
58.5% pure
Everyday-wear pieces, more affordable, most durable of the four
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Always check for BIS hallmarking. The Bureau of Indian Standards (BIS) hallmark certifies actual purity — look for the BIS logo, purity grade (e.g., "916" for 22K), the Hallmarking Unique Identification (HUID) number, and the jeweller's identification mark on the piece.
Making Charges — The Part That Varies Most
Making charges cover the labour and craftsmanship of turning raw gold into a finished piece. Unlike the base gold rate (which is fairly uniform city-wide), making charges vary enormously — this is where jewellers actually compete on price and where buyers can save the most by comparing.
Jewellery Type
Typical Making Charge
Plain gold chains/bangles (machine-made)
3% – 8%
Traditional handcrafted jewellery
10% – 18%
Intricate temple/antique designs
18% – 25%+
Branded showroom jewellery
+2% – 5% premium over local jewellers for the same design
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Making charges can be quoted as a flat percentage of gold value OR as a fixed ₹-per-gram rate — always ask which method is being used, since the two aren't directly comparable without doing the maths.
GST on Gold in India
Gold jewellery attracts 3% GST on the total transaction value — the gold value plus making charges combined. This has been the standard rate since GST was introduced on gold in July 2017, and it applies uniformly across states.
GST Calculation
GST = 3% × (Gold Value + Making Charges)
How to Calculate the Final Price — Step by Step
1
Get today's rate for your purity
Ask for the per-gram rate specifically for 22K or 18K — not the 24K reference rate.
2
Multiply by weight
Per-gram rate × weight in grams = base gold value.
3
Add making charges
Apply the quoted percentage (or flat ₹/gram rate) to get the pre-tax total.
4
Add 3% GST
Applied on the full pre-tax total (gold value + making charges).
5
Compare across jewellers
Since the base rate is similar everywhere, the making charge percentage is what actually separates a good deal from an expensive one.
Final Price Formula
Final Price = (Gold Rate × Weight + Making Charges) × 1.03
Worked Example
Meera wants to buy a 10-gram 22K gold necklace. The jeweller quotes a 22K rate of ₹6,400/gram and 12% making charges.
Component
Calculation
Amount
Gold value
₹6,400 × 10g
₹64,000
Making charges (12%)
₹64,000 × 12%
₹7,680
Subtotal
₹64,000 + ₹7,680
₹71,680
GST (3%)
₹71,680 × 3%
₹2,150
Final price
₹71,680 + ₹2,150
₹73,830
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The final bill is ₹73,830 — about 15.4% above the raw gold value. Use ToolLoom's Gold Price Calculator to instantly compare this against a different jeweller's making-charge quote before you buy.
Per Gram vs Per Tola Pricing
A tola is a traditional South Asian weight unit equal to approximately 11.664 grams, still used by some jewellers, particularly in parts of North India, alongside or instead of gram-based pricing.
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If one jeweller quotes ₹6,400/gram and another quotes ₹74,650/tola, they may actually be charging nearly the same rate — but the per-tola figure looks dramatically larger at first glance. Always convert to a common unit (grams) before comparing prices between jewellers.
Common Mistakes Buyers Make
Comparing 24K rates to 22K jewellery prices — always ask for the rate specific to the purity you're buying
Not asking for making charges upfront — this is the component with the widest variation between sellers
Gold jewellery price = (Gold rate per gram for the purity × weight in grams) + making charges + 3% GST on the total. For example, at a 22K rate of ₹6,400/gram for 10 grams: base price ₹64,000, plus making charges (say 12% = ₹7,680), then 3% GST is applied on the sum (₹64,000 + ₹7,680 = ₹71,680), adding ₹2,150 GST for a final price of approximately ₹73,830.
The number indicates purity out of 24 parts. 24K is 99.9% pure gold, too soft for daily-wear jewellery and used mainly for coins and bars. 22K (91.6% pure) is the most common purity for Indian jewellery, mixed with small amounts of silver or copper for durability. 18K (75% pure) is popular for diamond-studded and Western-style jewellery. 14K (58.5% pure) is more durable and cheaper but less common in traditional Indian jewellery.
Yes. Gold jewellery attracts 3% GST on the total value (gold value plus making charges). If making charges are billed separately, they may attract GST separately at the same 3% rate depending on how the jeweller structures the bill — always ask for a clear breakup on your invoice.
A tola is a traditional South Asian unit of weight equal to approximately 11.664 grams. Some jewellers, especially in parts of North India, still quote prices per tola rather than per gram, which can confuse buyers comparing prices across shops. Always confirm whether a quoted rate is per gram or per tola before comparing prices — a per-tola rate will look roughly 11.6 times higher than the equivalent per-gram rate.
The base gold rate (per gram, for a given purity) is generally similar across a city since it tracks the international and domestic bullion market. The real difference between jewellers is in making charges, which can range from 3% to 25% of the gold value depending on the design's intricacy, brand markup, and whether it's a small local jeweller or a large branded showroom. Always compare making charge percentages, not just the final price.
Zakat on gold is calculated using the current market value of the gold content (by weight and purity) on your Zakat calculation date — not the original purchase price, and typically excluding making charges since Zakat is levied on the gold's intrinsic value, not the craftsmanship cost. Use today's gold rate for your purity to value it, not the receipt from when you bought it.
About ToolLoom: We build free tools for Indian students, professionals and creators. Gold rates fluctuate daily — always verify the current rate with a local jeweller or bank before finalising a purchase. Found an error? Email contact@toolloom.in