The short answer
A fair silver jewellery price can be rebuilt as:
(weight of silver × rate for its purity) + making charges + stones or plating + hallmarking + 3% GST on the total.
Key points:
- Indian silver rates are quoted per kilogram of 999 (fine) silver, excluding GST and making charges.
- 925 sterling silver contains 92.5% silver. Its metal value is 0.925 × the 999 rate. Ask which rate your jeweller uses.
- Making charges are quoted per gram, as a percentage or per piece. On light, detailed jewellery they often cost more than the silver itself.
- GST on silver jewellery is 3% of the total value, including making charges.
- Silver hallmarking is voluntary. Hallmarked pieces carry a BIS mark with the word “SILVER”, a purity grade and a HUID that you can check in BIS Care.
How the silver rate is quoted
The India Bullion and Jewellers Association publishes reference rates for “Silver 999” per 1 kg. It notes that the rates are “without 3% GST and Making Charges” (IBJA rates). Jewellers’ boards usually show a per-kg or per-gram rate for fine silver. Divide a per-kg rate by 1,000 to get the rate per gram.
That rate is for fine silver: 99.9% pure, soft and mostly used for coins, bars and some articles. Most jewellery is sterling silver (925), 92.5% silver alloyed usually with copper for strength. See our silver jewellery guide for alloys and finishes.
999 rate or 925 rate?
Jewellers price silver jewellery in different ways. Some apply the fine-silver rate to the whole weight; others apply a rate adjusted for purity. The difference is the purity gap:
925 rate = 999 rate × 0.925 (a 7.5% difference)
Neither method is illegal; it is a pricing choice. What matters is that you know which is used, so you can compare one shop’s quote with another’s.
Purity grades and the hallmark
Under IS 2112:2025, hallmarking of silver jewellery and articles became available on a voluntary basis from 1 September 2025. There are seven purity grades: 800, 835, 925, 958, 970, 990 and 999. The hallmark has three components: “BIS Standard Mark with the word ‘SILVER’, purity grade, and HUID code” (PTI via The Week, 4 September 2025).
Practical consequences:
- A “925” stamp alone is a maker’s claim, not a hallmark. Our guide to identifying genuine 925 silver explains the checks.
- A hallmarked piece’s HUID can be checked in the BIS Care app, which shows the article type, purity and hallmarking details.
- The hallmarking fee that jewellers pay to the centre for silver is ₹35 per article, with a minimum of ₹150 per consignment, plus taxes (BIS (Hallmarking) Amendment Regulations, 2026, Gazette of India, 14 September 2026). Expect a per-article charge, not a per-gram one, if it is passed on.
Making charges: three common methods
| Method | How it is quoted | Best for comparing |
|---|---|---|
| Per gram | ₹ per gram of silver | Plain chains, payal, bangles, kadas |
| Percentage | % of metal value | Larger plain pieces |
| Per piece / fixed price | One price, often an MRP | Branded, light or detailed designs |
Why making charges can exceed the metal value: silver is far cheaper per gram than gold, but the labour of casting, setting, polishing and plating costs about the same. On a 4 g pair of earrings, the work can easily cost more than the 4 g of silver.
Finishes add cost. Rhodium, gold or black (oxidised) finishes are extra processes. See our guide to rhodium vs gold plating on silver.
GST: 3% on the total
A government GST FAQ addresses jewellery sold to customers, covering “Gold, Diamond or Silver Jewellery”. Its answer: “GST is payable at the rate of 3% of the total transaction value of jewellery, whether the making charge is shown separately or not” (FAQ on Gems & Jewellery under GST, Directorate of Commercial Taxes, West Bengal).
On a bill, this is typically CGST 1.5% + SGST 1.5%, or IGST 3% for an interstate online order. A separate 5% on making charges should not appear on a retail jewellery bill.
Worked example 1: a plain 925 bracelet, two pricing methods
Illustrative figures only.
- 999 silver rate: ₹100,000 per kg = ₹100 per gram (round number for easy arithmetic)
- Bracelet: 25.0 g, 925 sterling, hallmarked
- Making: ₹40 per gram
- Hallmarking: ₹35
| Line | Method A: 999 rate on full weight | Method B: 925 rate |
|---|---|---|
| Metal value | 25.0 × 100 = 2,500.00 | 25.0 × 92.50 = 2,312.50 |
| Making (₹40/g) | 1,000.00 | 1,000.00 |
| Hallmarking | 35.00 | 35.00 |
| Taxable value | 3,535.00 | 3,347.50 |
| GST 3% | 106.05 | 100.43 |
| Total | ₹3,641.05 | ₹3,447.93 |
The difference is ₹193.12: the 7.5% purity gap on the metal value (₹187.50) plus GST on it. Neither total is “wrong”, but two shops using different methods are not quoting like for like.
Worked example 2: a stone-set silver ring
Illustrative figures only.
- Gross weight 6.0 g, set with stones totalling 1.5 ct. At 0.2 g per carat, that is 0.3 g.
- Net silver: 6.0 − 0.3 = 5.7 g of 925
- Metal at the 925 rate: 5.7 × 92.50 = ₹527.25
- Making (setting and finishing), per piece: ₹600
- Stones (cubic zirconia), per piece: ₹100
- Hallmarking: ₹35
| Line | Amount (₹) |
|---|---|
| Silver | 527.25 |
| Making | 600.00 |
| Stones | 100.00 |
| Hallmarking | 35.00 |
| Taxable value | 1,262.25 |
| GST 3% | 37.87 |
| Total | 1,300.12 |
Here the silver is about 42% of the taxable value. For light, stone-set pieces, labour and stones decide the price, which is why weight alone does not explain it.
Worked example 3: decoding a fixed-price (MRP) piece
Many online and branded silver pieces carry one price with no breakdown. Work out the implied price per gram.
- Pendant: 925 silver, 5.0 g, MRP ₹2,999 including GST
- Price before GST: 2,999 ÷ 1.03 = ₹2,911.65
- Metal value at the illustrative 925 rate: 5.0 × 92.50 = ₹462.50
- Everything else (design, labour, plating, stones, brand, packaging, returns, margin): ₹2,449.15
- Implied price: ₹582 per gram, against ₹92.50 per gram of metal
A fixed price is not unfair in itself. You are paying for design and service, not metal. But know that on resale, buyers value the silver content, and making charges are not recovered.
How much does a change in the silver rate move the price?
Using the three examples above (Method B for the bracelet), the share of the pre-GST price that is metal is:
| Piece | Metal value | Pre-GST price | Metal share |
|---|---|---|---|
| Plain 25 g bracelet | ₹2,312.50 | ₹3,347.50 | 69% |
| Stone-set 6 g ring | ₹527.25 | ₹1,262.25 | 42% |
| 5 g fixed-price pendant | ₹462.50 | ₹2,911.65 | 16% |
If the silver rate rises 10% and making charges stay the same:
- the bracelet’s price rises by about 6.9% (₹231.25 before GST);
- the ring’s by about 4.2% (₹52.73);
- the pendant’s by about 1.6% (₹46.25), if the seller reprices at all.
What this means:
- Waiting for a “better silver rate” matters for heavy, plain pieces: payal, kadas, chains, bangles and coins (see silver payal and bichhiya: purity, weight and price). It hardly matters for light, designed or branded pieces, whose price is mostly labour and margin.
- Rate-linked pricing (weight × rate + making) is common for heavy plain items. Fixed prices are common for light designer pieces. If a heavy piece has a fixed price, convert it to an implied per-gram price and compare it with rate-linked quotes.
- For gifts bought as a store of value, the metal share tells you how much of the price you could expect back on resale. For gifts bought for design, it does not matter.
Comparing quotes: a method
- Ask for the weight (gross and net if there are stones) and the purity, and whether it is hallmarked.
- Ask which rate is used (999 or 925) and its date.
- Ask for making charges per gram, or convert a percentage or per-piece charge into a per-gram figure.
- Ask what is separately charged: stones, plating, chain, clasp, hallmarking.
- Check that GST is 3% of the total.
- Get the exchange or buy-back terms in writing: the rate used, how purity is tested and what is deducted.
What affects resale value
When you sell or exchange silver jewellery, buyers generally pay for the silver content after testing, minus deductions. Making charges, plating, branding and most stones are not paid back. Plated or alloyed metals such as “German silver” contain no silver at all; see 925 vs German silver vs silver-plated.
For pieces bought as savings, coins and bars of 999 silver usually carry lower making charges than jewellery. They are a different purchase from wearable jewellery.
Common mistakes
- Comparing a 999-rate quote with a 925-rate quote as if they were the same.
- Ignoring weight on fixed-price pieces. Calculate the implied price per gram.
- Accepting “925” stamps as proof. Check for a BIS hallmark and HUID, or test.
- Paying silver rate for stones, or making charges on stone weight.
- Forgetting care costs. Plated silver may need re-plating; see our silver care guide.
FAQ
How are silver making charges calculated?
Per gram, as a percentage of metal value, or as a fixed price per piece. Convert every quote into making charges per gram of silver to compare them.
Is silver jewellery priced at the 999 rate or the 925 rate?
It varies by jeweller. A 925 rate is 92.5% of the 999 rate. Ask which is used, and compare quotes on the same basis.
What GST is charged on silver jewellery?
3% of the total transaction value, including making charges, whether or not making is shown separately.
Why is a light silver piece so expensive per gram?
Labour, setting, plating, design and retail costs do not fall with weight. On small pieces they are most of the price.
Is hallmarking mandatory for silver?
No. Silver hallmarking under IS 2112:2025 is voluntary. Hallmarked pieces carry a HUID that you can verify in BIS Care.
Do I get making charges back when I sell silver jewellery?
Generally no. Buyers pay for the tested silver content, less any deductions they state. Ask for the terms in writing when you buy.
Sources
- India Bullion and Jewellers Association: published rates (“Silver 999”, per 1 kg; “without 3% GST and Making Charges”), checked 11 October 2026.
- Directorate of Commercial Taxes, West Bengal: FAQ on Gems & Jewellery under GST, question 7, checked 11 October 2026.
- PTI via The Week: Govt introduces voluntary silver jewellery hallmarking with digital traceability, 4 September 2025, checked 11 October 2026.
- Bureau of Indian Standards: BIS (Hallmarking) Amendment Regulations, 2026, Gazette of India Extraordinary, 14 September 2026 (Schedule IV: silver ₹35 per article, minimum ₹150 per consignment; gold ₹75 per article, minimum ₹200), checked 11 October 2026.
