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Buyer's guide

Gold making charges, explained

The most opaque part of a jewellery bill — broken down honestly. Per-gram vs wastage formulas, fair market ranges, hidden-markup spots, and a real sample bill.

By Mayurbhai Vasoya · Last updated

Making charges (also called ghadai) compensate the jeweller for design and labour to convert raw gold into a finished piece. Two formulas dominate Indian retail: per-gram flat rate (₹250-500/g for plain pieces) and wastage percentage (8-22% for hand-set or intricate work). The making-charge formula must appear as a separate line on your bill — never bundled into a single all-inclusive price.

01 · Quick answer

  • Plain pieces (chains, bangles, bands): expect ₹250-500 per gram or 5-10% wastage.
  • Hand-set bridal pieces: 12-22% wastage is fair given the labour.
  • Jadau / meenakari heritage work: 18-30% wastage reflects the genuine craft hours.
  • Always demand a line-itemised bill — net gold weight, gold rate, making, GST, all separately.
  • Walk away if the bill is "all-inclusive" with no making-charge breakdown — it's the standard hide-the-margin tactic.

02 · What "making charges" actually means

Making charges (also called ghadai, banwai, or simply "labour") cover four things bundled into a single line on the bill:

  1. Design fee — the karigar's time to draft and prototype the piece.
  2. Manufacturing labour — the actual hand-finishing or machine-finishing hours.
  3. Wastage allowance — the small amount of gold lost to filings, polishing, and re-melting during fabrication. Genuinely irrecoverable in some cases.
  4. Workshop overhead and margin — rent, utilities, the jeweller's profit on the labour component.

The gold metal itself is priced separately at the daily rate. Making charges are a separate line precisely because gold rate fluctuates daily but labour cost is stable.

03 · The two formulas you'll see on a bill

Per-gram flat rate

e.g. ₹400 per gram

Used for plain pieces — chains, bangles, plain bands, daily-wear earrings — where labour is predictable per gram. Most transparent for the buyer because total making cost is straightforward to compute. Fair range: ₹250-500/g for 22K plain work.

Wastage percentage

e.g. 12% of gold value

Used for intricate or hand-set pieces — bridal sets, jadau, meenakari — where actual labour is harder to quantify per gram. Quoted as a percentage of the gold value at current rate. Fair range: 8-22% for 22K work depending on craft intensity.

Both formulas are legitimate. The buyer's question is not which formula but whether it's within the fair range for that piece type.

04 · Fair ranges by piece type (2026 India)

Piece typeTypical formulaFair range (22K)
Plain gold chainPer gram₹250-450/g
Plain bangle / kadaPer gram₹300-500/g
Daily-wear gold ringPer gram or 5-10% wastage₹350-600/g
Mangalsutra8-15% wastage10-15%
Hand-set bridal necklace12-22% wastage12-22%
Bridal trousseau set15-22% wastage15-22%
Jadau-only piece18-25% wastage18-25%
Jadau + meenakari heritage22-30% wastage22-30%
Diamond ring (18K base)10-18% wastage10-18%

Numbers are typical 2026 Rajkot and broader Saurashtra retail. National chains tend to fall at the upper end; family jewellers in the lower-to-middle. Anything above the upper end on a plain piece warrants a question.

05 · Sample bill walkthrough

A 22K gold bangle, gross weight 25g, with light stone-setting. Here's what an honest bill looks like:

Line itemCalculationAmount
Gross weight25.000 g
Stone weight (deducted)−1.500 g
Net 22K gold weight23.500 g
Today's 22K rate₹6,800 /g
Gold value23.5 × 6,800₹159,800
Making charges (12% wastage)12% of 159,800₹19,176
Stone value (separately invoiced)₹12,000
Sub-total₹190,976
GST @ 3% (gold)3% of 178,976₹5,369
GST @ 3% (stone)3% of 12,000₹360
Total payable₹196,705
Illustrative bill for a 25g 22K bangle with light stone-setting. Every value is computable from the lines above it.

Of the ₹196,705 total: ₹159,800 (81%) is the gold metal itself, ₹19,176 (10%) is making, ₹12,000 (6%) is stones, ₹5,729 (3%) is GST. The buyer can audit every line.

06 · Where hidden markup hides

The most common ways unscrupulous sellers obscure the real making-charge percentage:

  • "All-inclusive price". A single bill total with no line breakdown means there's no way to know whether making was 8% or 28%. Demand the breakdown.
  • Counting stones in gold weight. A 25g gross piece with 1.5g of stones should show 23.5g net gold. If the bill shows 25g charged at the gold rate, you're paying gold prices for non-gold.
  • Inflated stone valuations. Tiny chips of low-quality stone valued at premium-stone rates. Insist on IGI/GIA-certified stones for anything above ₹10,000 stone-value.
  • Higher gold rate than market. Compare the bill's gold rate against the daily Bombay Bullion Association (BBA) or India Bullion and Jewellers Association (IBJA) rate — they should match within ₹50/g.
  • Wastage applied to total piece weight including stones. Wastage % should apply to net gold value, not gross including stones. Re-do the math.

07 · How and when to negotiate

Making charges are negotiable; gold value is not. Practical rules:

  • Plain pieces: ask for the lower end of the fair range. Most jewellers accept a 5-15% reduction on the quoted making for plain work, especially for repeat customers.
  • Bridal commissions: negotiate the wastage % at design-conversation stage, not after the piece is made. Quoted ranges of 22% can often come down to 18% for established customers.
  • Bulk purchases (multiple pieces in one transaction): expect 5-10% reduction across all making charges.
  • Chain stores: less flexibility — making is set by corporate. Independent jewellers can adjust per relationship.
  • Don't negotiate down to silly margins — a karigar earning ₹150/g on a piece can't deliver heirloom-grade hand-finishing. The lower-end of the fair range is the floor.

Bring this checklist to any jeweller

These rules apply to any gold purchase in India. For the broader buyer's framework, read our guide to choosing a jeweller in Rajkot, and our BIS hallmark guide for verifying purity.

08 · Frequently asked questions

  • What is a fair making charge for a 22K gold chain in 2026?

    ₹250-450 per gram, or 5-10% wastage. Plain machine-made chains fall at the lower end; hand-finished braided or rope chains at the upper end. Anything above ₹500/g for a plain chain warrants a question.

  • Why do bridal pieces have higher making charges?

    Hand-set bridal jewellery has genuinely higher labour content — stone-setting, polishing, intricate filigree, and karigar hours that don't exist in a plain chain. 12-22% wastage on a bridal set reflects the actual craft investment, not pure margin.

  • Can I avoid making charges by buying gold coins or bars?

    Yes — gold coins and bars carry minimal making charges (typically 1-3%) because there's no design or finishing labour beyond standard minting. They're an investment vehicle, not jewellery. Convert to a piece later if you want, paying making charges at that stage.

  • Do exchange transactions reduce making charges?

    When you exchange old gold for new, the original making charges are NOT credited back — only the gold value at current rate. The new piece's making charges apply in full. This is standard practice across all reputable jewellers, including ours.

  • Are GST and making charges separate?

    Yes — GST (3% on gold, 3% on stones) is calculated on the gold value + making charges, then added at the end. The bill should show GST as a separate line. Beware of bills that fold GST into 'making' to obscure the actual labour markup.

  • How does Kishna Jewellers structure making charges?

    We quote per-gram for plain pieces and wastage-percentage for hand-set work — clearly labelled on every bill. For bridal commissions we lock the wastage % at the design-conversation stage so there are no surprises at delivery. Our typical ranges: plain ₹300-450/g, hand-set bridal 14-22%, jadau-meenakari 22-28%.

  • What's the difference between 'wastage' and 'labour' on a bill?

    Some sellers separate 'wastage' (the gold actually lost to filings) from 'labour' (the karigar's time). Most modern Indian retail bundles both into one 'making charges' line. Either format is fine if the line is itemised; what matters is total making cost as % of gold value.