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Gold Jewellery GST & Bill Calculation Guide India

A jewellery invoice looks complicated, but most of it is a short chain: gold value, plus making charges and other items, plus GST. This guide shows how to read one.

Parts of a gold jewellery bill

• Gold value: net gold weight times the rate for that purity.
• Making charges: a percentage, per-gram or fixed fee for crafting.
• Wastage, stones and other charges: listed only if applicable.
• GST: tax on the taxable value.

GST on a normal retail sale

When you buy finished jewellery from a shop, GST is generally charged on the whole invoice value of the jewellery, which includes the making charges. The rate commonly applied is 3%. Our calculator assumes 3% and lets you change it, because rules can change. Confirm the current rate with the official sources below.

Example (assumed numbers)

Gold value ₹1,00,000 plus 15% making (₹15,000) gives ₹1,15,000. GST at 3% is ₹3,450, so the total is ₹1,18,450. Note that the 3% applies to the combined ₹1,15,000, not only the gold.

Retail sale versus job work

Job work is different. If you hand over your own gold and pay a craftsman only to make or repair an item, the making fee is a service and is taxed on its own terms, at a different rate from retail jewellery. Do not apply a job-work rate to an ordinary shop purchase, and do not apply the retail rate to a pure labour bill. If your invoice splits items in an unusual way, ask the seller to explain the tax treatment.

What to check on a quotation

• The purity and the rate per gram used for it.
• Net gold weight, with stone weight shown separately.
• Whether making charges include wastage.
• That GST is calculated on the right subtotal.
• Hallmark details and the HUID of each piece. Verify through BIS resources. This site cannot verify a HUID.

If a quoted amount differs from your estimate, that does not prove overcharging. Discounts, extra charges or different weights can explain it. Use the calculator's bill checker to see the size of the gap, then ask the jeweller to itemise it.

Official sources

CBIC GST and the GST Council publish current rates and notifications. Our making charges guide covers the other part of the bill.

Try the gold jewellery price calculator with your own numbers.