Gold jewellery price calculation: every rupee, clearly explained
QWEEN
The gold rate on the board is never the price on the tag. Gold jewellery price calculation comes down to four parts, and once you can read them, comparing pieces is easy.
Gold jewellery price calculation is simple: net gold weight times the day's rate for its purity, plus making charges, plus any stones, plus 3 per cent GST on the total.[1] Ask for each line separately, check the weight and purity against the hallmark, and you can compare any two pieces fairly.
How does gold jewellery price calculation work in India?
Gold jewellery price calculation in India adds four things: the gold, the work, the stones and the tax. As a formula: (net gold weight × rate per gram for that purity) + making charges + stone value + 3 per cent GST on the sum.[1]
Only the gold value moves every day with the market. Making charges and stone prices are set by the jeweller, which is why two pieces of the same weight can carry very different price tags: a hand-set design takes far more hours than a plain machine-made chain.
When you can see all four lines, you can tell exactly where your money goes.
Why does the purity change the rate per gram?
The rate per gram depends on purity because you only pay gold prices for the gold actually in the piece. 22K is the familiar 916 gold, about 91.6 per cent pure; 18K is 75 per cent gold; 14K is about 58.5 per cent, under Bureau of Indian Standards grades.[2] The rest is copper, silver or other metals, which make the piece stronger and set its colour.[5]
So a 22K piece costs more per gram than an 18K piece. That is not a discount on 18K — it simply contains less gold, and is harder, which is why diamonds are usually set in 18K or 14K. At QWEEN, diamond jewellery is made mainly in 14K and 18K.
Here is how 10 grams compare at an illustrative 24K rate of ₹12,000 a gram; real rates change daily.
| Purity | Gold content | Rate per gram | Gold value of 10 g |
|---|---|---|---|
| 24K | about 99.5 per cent | ₹12,000 (illustrative) | ₹1,20,000 |
| 22K (916) | 91.6 per cent | ₹10,992 | ₹1,09,920 |
| 18K (750) | 75 per cent | ₹9,000 | ₹90,000 |
| 14K (585) | 58.5 per cent | ₹7,020 | ₹70,200 |
Jewellers usually display their own 22K and 18K rates, so ask which rate was used on your bill, and on which date.
What is the difference between gross weight and net weight in gold?
Gross weight is the whole piece on the scale; net weight is the gold alone, with stones taken out. Only net weight should be multiplied by the gold rate. Under BIS hallmarking rules, the invoice for a hallmarked piece must show the net weight of precious metal and its purity.[3]
The difference matters most in studded jewellery. Stones are weighed in carats, and one carat is 0.2 grams, so a quarter-carat of diamonds is 0.05 grams; coloured stones or a pearl can weigh much more. If stone weight were billed at the gold rate, you would pay for it twice. A clear bill shows gross weight, stone weight and net gold weight separately.
A plain gold bangle like this 18K yellow gold bangle keeps the sums simple: with no stones, its gross and net weight match.
How much are making charges on gold jewellery?
Making charges have no fixed national rate; each jeweller sets them, and they rise with how much hand-work a design needs. They are billed in one of three ways: a percentage of the gold value, a flat amount per gram, or a fixed amount for the whole piece.
The form matters when you compare. A percentage charge grows when the gold rate rises, even though the work has not changed. A per-gram charge grows with weight. A fixed charge is easiest to compare. QWEEN lowers making charges for Icon and Legend members of Qween's Club.
A common case: two 22K chains look almost the same, but one is ₹8,000 dearer. Often the gap is not the gold at all — one design simply has more links, joints and finishing.
How are diamonds and gemstones priced in gold jewellery?
Diamonds and gemstones are priced by their own weight and quality, separately from the gold. A diamond's value depends on its carat weight, cut, colour and clarity, so the stones can be worth more than the gold holding them.
The bill should list the stone weight in carats and its value as its own line. For natural diamonds, look for a certificate from an independent laboratory such as IGI or GIA, which records what each stone is.
At QWEEN, every diamond and gemstone is natural and every diamond is certified, so the stones in a QWEEN piece have a certificate behind them.
How is GST charged on gold jewellery?
GST on gold jewellery is 3 per cent of the full value of the piece — gold, stones and making charges together. According to the GST Council's gems and jewellery FAQ, the 3 per cent applies to the whole supply even when the making charge is shown on a separate line.[1]
You may hear that making charges attract 5 per cent GST. That rate applies to job-work between businesses, not to a retail bill for a finished piece, which as of September 2026 carries 3 per cent GST on the whole value.[1] The tax is worked out on the sum of everything above it, so a change in the making charge also changes the GST.[1]
Can you see the calculation worked out?
An 18K diamond pendant shows the whole calculation, line by line. It weighs 4.20 grams gross and carries 0.25 carat of diamonds. Every rate here is illustrative, from the 24K rate to the making charge and the diamond rate.
| Line | Working | Amount |
|---|---|---|
| Net gold weight | 4.20 g − 0.05 g stones | 4.15 g |
| 18K rate | 0.75 × ₹12,000 | ₹9,000 a gram |
| Gold value | 4.15 g × ₹9,000 | ₹37,350 |
| Making charges | 15 per cent of ₹37,350 | ₹5,603 |
| Diamond value | 0.25 ct × ₹80,000 | ₹20,000 |
| Subtotal | ₹62,953 | |
| GST at 3 per cent | 0.03 × ₹62,953 | ₹1,889 |
| Total | ₹64,842 |
Now a plain 22K bangle with 20 grams of net gold and an illustrative making charge of ₹600 a gram. The gold value is 20 × ₹10,992 = ₹2,19,840. Making adds ₹12,000, for a subtotal of ₹2,31,840. GST at 3 per cent is ₹6,955, so the total comes to ₹2,38,795.[1]
Much of the pendant's price is the diamonds and the work, while the bangle is almost all gold.
A chain with pendant such as the Magical Chariot Necklace is weighed as one piece, chain included.
How can you tell if the price is fair?
A price is fair when every line can be checked: the net weight matches the scale, the purity matches the hallmark, and the rate matches the day. Under BIS rules, a hallmarked piece carries the BIS logo, its purity (such as 22K916 or 18K750) and a six-character HUID, mandatory since 1 April 2023.[2][4] You can check the HUID yourself in the BIS Care app.[4]
- Net gold weight shown separately from gross and stone weight
- Purity on the bill matches the hallmark on the piece
- The gold rate used, and its date, written down
- Making charges shown as a clear amount, with wastage either included or listed once
- Stone weight in carats and stone value on their own line
- A certificate for natural diamonds from an independent lab
- Hallmarking charge and 3 per cent GST listed at the end
At QWEEN, gold jewellery is BIS hallmarked, so the purity on a QWEEN bill can be matched to the stamp and its HUID.
What happens to the price when you exchange or sell it back?
When you exchange or sell jewellery back, you are usually paid for what can be reused: the gold and the stones, not the making charges or the tax. That is why a piece's resale value sits below what you paid, even if the gold rate has not moved.
For old plain gold, the value works the same way as buying in reverse: net weight × purity × the day's rate. QWEEN's Assured Gold Exchange takes plain gold jewellery, coins and bars of 9K and above, including gold bought from other jewellers. It tests them in front of you, values them at the day's gold rate and gives store credit valid for 365 days; a PAN is required. This is how to think about it, not financial advice.
How does QWEEN keep the price clear?
QWEEN's view is that you should be able to check each part of a price, and know which part comes back to you later. QWEEN builds that on proof you can see, with the purity, the stones and the terms all written down.
On the gold, QWEEN BIS hallmarks its gold jewellery, and QWEEN stores keep a GoldSure Meter™ to read the purity in front of you. On the stones, QWEEN sets only natural diamonds and gemstones, has diamonds certified by IGI, with a GIA grading report for signature solitaires, and sources diamonds through one supply-chain partner, Rosy Blue. In QWEEN stores, pieces sit on open display, so you can compare two designs before you ask about price.
In QWEEN's Qween's Club, Icon members (₹2–6 lakh spent over the past 12 months) get 20 per cent off making charges on studded pieces and 10 per cent on plain gold. QWEEN's Legend members (above ₹6 lakh) get 30 and 15 per cent, plus 10 per cent off stones on studded pieces. QWEEN's Star members (below ₹2 lakh) get no making-charge discount. The benefits start after the 30-day return window, last 12 months and do not apply to coins.
QWEEN can also hold a price: a 20 per cent advance holds a piece, and a 50 per cent advance freezes the day's gold rate for 15 days, with making charges and stone prices fixed too.
To see it for yourself, ask in a QWEEN store or on a QWEEN video consult to go through the hallmark, the certificate and the exchange and buyback terms for a piece you like.
Seeing it in the metal
QWEEN's 18K pieces show the range: plain gold where the bill is mostly metal, and finer designs where the work carries more of the price.
18K · Desert Noon
Magical Chariot Necklace
View piece
18K · Desert Noon
Make It Count Bangle
View piece
18K · Desert Noon
Entangled Plans Drops
View piece
18K · Desert Noon
Our Secret Moments Necklace
View piece
18K · Desert Noon
Cosmic Pull Nose Pin
View piece
18K · Desert Noon
Entangled Plans Tiered Necklace
View pieceHold the piece, then read the bill
Weight and price make the most sense with the piece in your hand. In QWEEN stores, jewellery sits on open display, so you can pick it up, compare two designs and ask how each is priced.
Frequently asked questions
Does the gold rate include making charges?
No. The published gold rate covers the metal only. Making charges, the value of any stones and 3 per cent GST are added on top, so the final price is always higher than weight multiplied by the day's rate.
Why is 18K gold jewellery cheaper than 22K?
18K contains 75 per cent gold while 22K contains about 91.6 per cent, so each gram of 18K holds less gold. The rest is other metals, which also make 18K harder and better at holding diamonds securely.
Is GST charged on making charges separately?
GST at 3 per cent is charged on the whole value of a finished piece, including making charges, even if they appear as a separate line. The 5 per cent rate applies to job-work between businesses, not to a retail purchase.
Can I negotiate making charges?
Making charges are set by each jeweller, so there is often room to ask, especially on plain gold. Loyalty programmes can also lower them; QWEEN's Qween's Club, for example, reduces making charges for its Icon and Legend members.
How do I calculate the price of 22K gold jewellery?
Multiply the net gold weight by the day's 22K rate, add the making charge and any stone value, then add 3 per cent GST. At an illustrative ₹10,992 a gram, 10 grams of 22K gold is worth ₹1,09,920 before making and tax.
What is the hallmarking charge on my bill?
The hallmarking charge is the fee for testing and marking the piece at a BIS-recognised centre. BIS rules require it to be shown on the invoice along with the net weight and purity of the gold.
How often does the gold rate change?
Gold rates change daily, and sometimes during the day, following international prices and the rupee. That is why a good bill records the rate used and its date.
References
- GST Council and CBIC, Sectoral FAQ: gems and jewellery — on 3 per cent GST on the full value, including making charges, and 5 per cent on job-work
- Bureau of Indian Standards, Hallmarking FAQ — on IS 1417 purity grades and the three marks of a hallmark
- Bureau of Indian Standards, Hallmarking: jewellers — on what a hallmarked jewellery invoice must show
- Press Information Bureau, HUID mandatory on hallmarked gold jewellery — on the HUID mandate from 1 April 2023 and the BIS Care app
- World Gold Council, About gold jewellery — on why gold is mixed with other metals for strength and colour
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