A not-for-profit industry body serving jewellers across South IndiaGrievance helpline: 1800 000 4657 (Mon–Sat, 10am–6pm)

How to read a jewellery bill: making charges, wastage and GST

Most disputes the Council sees do not begin with fraud. They begin with an invoice that bundles several charges into one number, so the buyer cannot tell what they paid for. Here is what a correct bill looks like.

Gross weight, net weight and stone weight

Gross weight is everything on the scale. Stone weight — diamonds, kundan, coloured stones — must be deducted to give net gold weight. Gold is billed on net weight only; stones are billed separately at their own value.

Billing stone weight at the gold rate is one of the most common overcharges. On heavier stone-set pieces it can be a significant share of the total.

Purity and the applied rate

The bill must state the purity (916, 750, 999) and the per-gram rate applied. Cross-check that rate against a published board for the day. A rate materially above the derived purity rate means margin is hidden in the metal line.

Making charges

Making is the labour and design cost. It is quoted either as a percentage of metal value or as a flat rupee amount per gram. Handmade and intricate work legitimately costs more than machine-made chain.

What matters is that the basis is agreed before the order, stated on the invoice, and not recoverable on resale. Ask for it in writing at the design stage.

Wastage

Wastage originated when hand-fabrication genuinely lost metal. Where a jeweller still charges it, it is an additional weight-based percentage and is negotiable. It must be a separate line — never folded into the metal rate or the making charge.

GST and hallmarking

GST is 3% on the value of the gold and 5% on making charges. The hallmarking fee is charged per article. All three should appear as their own lines with the jeweller's GSTIN on the invoice.

A worked example

For 10 grams of 22K at a metal rate of ₹9,000 per gram with 12% making: metal ₹90,000, making ₹10,800, GST on metal ₹2,700, GST on making ₹540, plus hallmarking. Total roughly ₹1,04,040 plus the hallmark fee — and only the ₹90,000 metal component tracks the gold rate on resale.

Run that arithmetic on any quote you are given. If the numbers on the bill do not reconstruct from the lines shown, ask for a corrected invoice.

Frequently asked questions

Are making charges refundable when I sell?

No. Resale pays metal value at the prevailing rate for the assessed purity. Making charges, wastage and GST are not returned.

Can I negotiate making charges?

Usually yes, particularly on machine-made and lighter pieces. Negotiate before the order is confirmed, and get the agreed basis noted.