Take the gold value, add the making charge, then add 3% of that total. That is the whole calculation. A bill that adds 3% on the gold and 5% on the making charge is charging you more than the rule allows.
The rule, from the official FAQ
The tax department answered this exact question when GST started. Its sectoral FAQ on gems and jewellery takes a 10 gram gold chain sold for Rs. 30,000, of which Rs. 28,000 is gold and Rs. 2,000 is making charge, and asks whether GST is 3% on the total or 3% on the gold plus 5% on the making. The answer: GST is 3% of the total transaction value of the jewellery, whether the making charge is shown separately or not.
The rate itself was rechecked when GST rates were reorganised in 2025. Notification No. 9/2025-Integrated Tax (Rate), in force from 22 September 2025, lists gold (heading 7108) and articles of jewellery (heading 7113) in its 3% schedule. On a bill from a shop in your own state, that 3% is split into 1.5% CGST and 1.5% SGST.
Check a bill at today's rate
Put in the weight, purity and making charge from your quote. The making charge is set to 12% only as a starting point; use the figure your jeweller gives you.
| Gold: 10 g × ₹12,973 | ₹1,29,733 |
|---|---|
| Making charge | ₹15,568 |
| Taxable value | ₹1,45,301 |
| GST 3% (1.5% CGST + 1.5% SGST) | ₹4,359 |
| You pay | ₹1,49,660 |
If a bill charged 3% on the gold and 5% on the making charge, GST would be ₹4,670 instead of ₹4,359, ₹311 too much. Gold rate is today's IBJA benchmark; your jeweller's board rate may be a little higher.
How making charges are quoted
There is no fixed making charge. Each jeweller sets its own, and it varies with the design. You will usually see one of two forms:
- A percentage of the gold value. Common on handmade and detailed pieces. Because it is a percentage, it grows with the gold rate.
- A fixed amount per gram. Common on chains and simple machine-made pieces. Easier to compare between shops.
Whichever form it takes, ask for it as a number before the piece is weighed and billed. Making charges are the part of the price you can negotiate; the gold rate and GST are not. When you sell or exchange jewellery later, you are paid for the gold, not the making, so a high making charge is money you will not see again.
Where the 5% figure comes from
The same official FAQ has a 5% answer, which is why the confusion persists. It covers a different case: a manufacturer gives gold to a job worker, who makes the jewellery and returns it. If that job worker is registered, it pays GST at 5% on its job charges only, and the manufacturer takes credit for that tax. That is a charge between two businesses. It does not apply to the bill you get when you buy jewellery over the counter.
What a fair bill shows
- Net weight of the gold in grams, with stone weight shown separately.
- Purity, matching the hallmark (for example 22K916), and the HUID.
- The gold rate per gram used for that purity.
- The making charge, as an amount.
- GST at 3% on gold value plus making charge, and the total.
Compare the gold rate on the bill with today's IBJA rate. Jewellers often price a little above the benchmark, so a small gap is normal; a large one is worth asking about. Check the hallmark with our HUID guide, and if you buy in bhori, convert it first with the bhori to gram converter.
Sources
- CBEC (now CBIC), Sectoral FAQ on Gems & Jewellery, questions 7 and 8 (hosted on gstcouncil.gov.in)
- Notification No. 9/2025-Integrated Tax (Rate), Schedule IV at 3%, in force from 22 September 2025 (cbic.gov.in)
Questions people ask
What is the GST on gold jewellery?
3% of the total value, which means the gold value plus the making charge. In a shop in your own state it usually appears as 1.5% CGST and 1.5% SGST.
Is GST charged on making charges?
Yes, at the same 3%, because GST is worked out on the full transaction value of the jewellery. The official FAQ says this holds whether the making charge is shown separately or not.
Is GST on making charges 5%?
Not when you buy jewellery from a shop. The 5% rate in the official FAQ is for a job worker who makes jewellery for a manufacturer, charged on the job charges between those two businesses.
Did the GST rate on gold change in September 2025?
No. The new rate notification that took effect on 22 September 2025 keeps gold (heading 7108) and jewellery (heading 7113) in its 3% schedule.
How do I calculate the price of gold jewellery?
Multiply the weight by the gold rate for its purity, add the making charge, then add 3% GST on that total. The calculator on this page does it at today's IBJA rate.