How Gold Jewellery Prices Are Calculated: Rate, Making Charges and GST

Two gold rings of the same weight can have very different prices. That is not magic — every gold jewellery price is built from the same few parts. Once you know them, you can compare any two jewellers fairly.

The formula

• Gold value = net gold weight × today’s rate for that karat.
• Making charges = the cost of crafting the piece, either a percentage of the gold value or a fixed amount.
• Stone charges = the value of any stones set in the piece, if there are any.
• GST = 3% of the total (1.5% CGST + 1.5% SGST).

Step 1: the karat rate

The daily gold rate is quoted for 24K (pure) gold. Lower karats contain less gold, so their rate is proportionally lower: 22K is 22/24 of the 24K rate, 18K is 18/24, and 14K is 14/24. On Srevia the rate bar at the top of every page shows today’s rates for each karat.

Step 2: net weight

Gross weight is the whole piece. If it has stones, their weight is subtracted to get the net gold weight — you should only pay the gold rate on the gold.

A worked example

Take an 18K ring with 2 g of net gold, making charges of 25%, and an 18K rate of ₹10,000 per gram (a round number for the example — check the live rate for today’s figure).

• Gold value: 2 g × ₹10,000 = ₹20,000
• Making (25%): ₹5,000
• Subtotal: ₹25,000
• GST (3%): ₹750
• Total: ₹25,750

What about diamond jewellery?

Diamond jewellery adds the value of the diamonds (priced by carat, colour and clarity) to the value of the gold setting and the making charges, then GST on top. Srevia shows each of these as a separate line on the product page.

Every product on Srevia shows this full breakup at today’s rate, so you never have to guess. Browse gold jewellery to see it on any piece, or read about choosing between 22K, 18K and 14K gold.