How Gold Jewellery Price Is Calculated in India (With a Real Example)
The formula
Price = Gold value + Stone value + Making charges (− any discount) + GST (3%)
- Gold value = net gold weight (grams) × gold rate per gram for that purity (22K, 18K…)
- Stone value = carat weight × rate per carat (for gemstones or diamonds)
- Making charges = the cost of design and craftsmanship, usually a % of the gold value or a fixed amount per gram
- GST = 3% on the total value of the jewellery
A real example, line by line
Here is the actual price breakup shown on our website for Navratna Necklace D04 (18K yellow gold) on 22 October 2026:
| Line | Calculation | Amount |
|---|---|---|
| Gold value | 4.5 g (rounded) × ₹10,829 per gram (18K rate that day) | ₹48,317 |
| Gemstones | 26.63 ct × ₹3,000 per carat | ₹79,890 |
| Making charges | 14% of gold value | ₹6,764 |
| Festive offer | 30% off making charges | − ₹2,029 |
| Net making charges | ₹4,735 | |
| GST | 3% of (₹48,317 + ₹79,890 + ₹4,735) | ₹3,988 |
| Total | ₹1,36,930 |
Gross vs net weight: the product page lists a total gross weight of 9.79 g, which includes the stones. The gold weight (about 4.5 g) is what the gold rate is applied to. The 26.63 carats of gemstones weigh about 5.3 g (1 carat = 0.2 g).
Why 22K and 18K prices differ
- 22K gold is about 91.6% pure gold and 18K is 75%, so the 18K rate per gram is lower.
- 18K is harder, so it's often used for pieces set with many stones, like Navratna necklaces and bracelets. 22K has a richer yellow colour and is popular for plain gold and gents' malas. See 18K vs 22K gold.
What to check before you pay
- The breakup. Each component (gold, stones, making, GST) should be shown separately. Be careful with "all-inclusive" prices that hide the gold rate.
- The gold rate used. Compare it with that day's published rate for the same purity.
- BIS hallmark and HUID. Gold jewellery sold in India must carry a BIS hallmark with a 6-digit HUID code. You can verify it in the government's BIS CARE app.
- Stone certificates. For gemstones, check the lab report and the treatment (see Gemstone treatments explained).
- Weight tolerance. Handmade jewellery can vary slightly in weight. Kumud's policy allows up to 5%, and the price is adjusted either way.
- Exchange and buy-back terms. Find out how the jeweller values your piece if you exchange or sell it back later. At Kumud, gemstone jewellery is valued on its metal weight at that day's rate.
Frequently asked questions
How is the gold jewellery price calculated in India?
Gold weight × the day's gold rate for that purity, plus the value of any stones, plus making charges, plus 3% GST.
What are making charges?
The cost of designing and crafting the piece, usually charged as a percentage of the gold value or as an amount per gram. At Kumud, making charges are shown separately, along with any festive discount.
What is the GST on gold jewellery?
3% on the value of the jewellery.
Why does the price of the same jewellery change every day?
Because the gold rate changes daily. The stone value and making-charge percentage usually stay the same, but the gold value, and therefore the GST, move with the rate.
What is the difference between gross weight and net weight?
Gross weight includes everything (gold plus stones). Net or gold weight is the gold alone. The gold rate applies only to the gold weight.
Every product on kumudgemstones.com shows its full price breakup. Browse the Navratna collection or our rings.