How gold jewellery is priced
The amount you pay for a gold ornament is built from three parts: the gold value (the day's rate multiplied by the weight), the jeweller's making charges, and GST. Making charges are the labour cost and vary widely — plain or machine-made pieces are cheaper, while intricate handmade designs cost more.
How GST works on gold
For finished jewellery sold to a retail customer, GST is 3% of the total transaction value, including making charges. See CBIC’s Gems & Jewellery FAQ, question 7. Separate repair and job-work services are outside this calculator’s scope. For investment, coins and bars carry minimal making charges, so more of your money goes into actual metal.
A tip before you buy
Always ask for an itemised invoice that shows the metal value, making charges and GST separately. Making charges are often negotiable, and comparing them across jewellers can save a meaningful amount on the same piece.