Gold Making Charges & Wastage
How jewellers charge for craftsmanship — percentage, per-gram and wastage (VA) explained.
Rates as on 29 September 2026 · Updated 29 September 2026Overview
Making charges pay for design, labour and machining. They can be a percentage of the gold value, a fixed amount per gram, or — especially in South India — a “wastage” or value-addition (VA) percentage on the gold weight. Making charges are usually not recovered when you sell or exchange jewellery, so they are a real cost.
| Particular | Details |
|---|---|
| Typical range | 3% – 25% of gold value (up to 35% for intricate work) |
| Machine-made chains | Lowest (≈3–8%) |
| Handcrafted / antique / temple | Highest (≈15–35%) |
| Wastage / VA | ≈2–5% of weight in some regions |
| GST | 3% on full invoice including making charges |
Methods jewellers use
| Method | Example | Where common |
|---|---|---|
| Percentage of gold value | 12% on ₹1,40,950 = ₹16,914 | Most branded chains |
| Flat per gram | ₹600/g × 10 g = ₹6,000 | Local jewellers, chains |
| Wastage / VA | 4% of 10 g = 0.4 g extra gold | South India (Kerala, TN) |
Worked jewellery bill (10 g, 22K)
| Item | Calculation | Amount |
|---|---|---|
| Gold value | 10 g × ₹14,095 | ₹1,40,950 |
| Making charges (12%) | ₹16,914 | |
| Hallmark charge | ₹45 | |
| Sub-total | ₹1,57,909 | |
| GST @3% | ₹4,737 | |
| Total payable | ₹1,62,646 |
How to reduce making charges
- Compare the effective rate (total ÷ weight) across stores
- Negotiate — making charge is the most negotiable part
- Watch for festival offers on making charges
- Buy coins/bars or ETFs for investment, not jewellery
- Ask for itemised invoices (gold, stones, making, GST)
Frequently asked questions
Do I get making charges back when selling?
No. Resale is usually based only on gold weight and purity.
Is wastage the same as making charge?
It is a different way of charging for the same craftsmanship cost.
Gold rates are indicative market references (29 September 2026) and change during the day. Rules on tax, hallmarking and investment products can change — verify with official sources. FinancePortal does not sell gold.