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Making charges are one of the most misunderstood parts of a gold jewellery purchase in India — and one of the most negotiable. They’re the fee you pay for transforming raw gold into a finished piece, and they can vary from 5% to 30% or more of the gold value depending on where you buy and what you’re buying. This guide explains exactly what making charges are, how they’re calculated, what’s fair to pay, and how to avoid overpaying.
What are making charges in gold jewellery?
Making charges are the fee a jeweller charges for the labour, skill and equipment used to design and craft a piece of gold jewellery. They cover the craftsperson’s time, tools and equipment, and in some cases wastage — the small amount of gold physically lost during manufacturing. Some jewellers separate making charges and wastage on the bill; others combine them as “VA” (Value Addition). Either way, the economic effect is the same: it’s the cost layered on top of the gold’s intrinsic value.
How making charges are calculated: three methods
- Percentage of gold value — most common. If making charges are 12% and your gold value is ₹70,000, you pay ₹8,400. Transparent and easy to verify.
- Fixed rate per gram — a flat amount per gram of gold (e.g. ₹300/gram). On a 10-gram chain, that’s ₹3,000. Common with traditional jewellers.
- Per piece — a flat fee per item. Common for standardised machine-made designs.
A real example
Buying a 10-gram 22K gold necklace at ₹7,000/gram:
- Gold value: 10 × ₹7,000 = ₹70,000
- Making charges at 12%: ₹8,400
- Subtotal: ₹78,400
- GST at 3%: ₹2,352
- Total: ₹80,752
At a different jeweller charging 20% making charges, the same piece costs ₹85,960 — over ₹5,000 more for identical gold.
What are reasonable making charges in India?
| Jewellery type | Typical making charges |
|---|---|
| Machine-made chains, bangles | 5%–10% |
| Standard handcrafted pieces | 10%–18% |
| Bridal sets, complex handwork | 18%–30% |
| 18K diamond-set jewellery | 25%–50% |
| Filigree, temple, Kundan work | 30%–60%+ |
Making charges and resale value
Making charges are not recoverable on resale or exchange. When you sell or exchange jewellery, you receive the gold value only — based on current gold rate × weight. For jewellery with very high making charges, the resale loss is significant. For jewellery you plan to keep permanently, this matters less. See our VA in gold guide for the complete picture.
How to negotiate making charges
- Compare across jewellers — get quotes from at least two shops for the same design and weight.
- Ask for a breakdown — how much is making and how much is wastage. Machine-made pieces don’t have significant real wastage.
- Buy during festival offers — Diwali, Akshaya Tritiya and Dhanteras bring discounted or zero making charge promotions.
- Choose simpler designs — the same gold in a simpler form carries significantly lower making charges.
Browse gold jewellery on Amazon
Browse gold jewellery and accessories on Amazon India — compare styles and prices before visiting a jeweller. Also see global gold options.
Frequently Asked Questions
What are making charges in gold jewellery?
Making charges are the fee for crafting the jewellery — labour, design, tools and equipment. They’re added on top of the raw gold price and are the most variable component of a gold jewellery bill.
Do I get making charges back when I sell gold?
No. Making charges are not recovered on resale. You receive the gold value only — based on weight × current gold rate.
Can making charges be negotiated?
Yes — unlike GST or the gold rate, making charges are negotiable. Comparing quotes across jewellers, buying during festival offers, and choosing simpler designs are the most reliable ways to reduce them.
The bottom line
Making charges are legitimate but also the most variable and negotiable part of any gold purchase. Compare across jewellers, ask for a breakdown, and time your purchase for festival promotions. Lower making charges on the way in means a better financial outcome on the way out.