The short answer
A gold jewellery bill should let you rebuild the price yourself:
(net gold weight × rate for that purity) + making charges + stone value + hallmarking charge + 3% GST on the total.
The lines that matter most:
- Net weight is the gold alone. Gross weight includes stones, beads or other materials. Gold should be priced on the net weight.
- Making charges (sometimes printed as V.A., value addition, or split into making and wastage) are quoted per gram or as a percentage. Check which weight they are calculated on.
- GST on jewellery is 3% of the total transaction value, including making charges, whether or not making is shown separately.
- For hallmarked jewellery, BIS requires the bill to state each article’s description, net weight of precious metal, purity in carat and fineness, and the hallmarking charge.
Why the bill matters more than the price tag
A price tag gives one number. The bill shows how it was built, and it is the document you will rely on if you exchange, resell or dispute the piece. The Bureau of Indian Standards (BIS) says it is “necessary to take authentic bills/invoice” of hallmarked articles for any dispute or complaint (BIS consumer FAQ).
Two pieces with the same tag price can be very different purchases. One may have 9.8 g of gold and modest making charges. Another may have 8.9 g of gold, a heavy stone setting and high making charges. Only the bill tells you which is which.
The lines on a typical bill
Layouts differ between jewellers, but most bills contain these lines:
| Line | What it means | What to check |
|---|---|---|
| Item description | Type of article, sometimes a design or tag number | Matches the piece you were shown |
| HUID | The six-character hallmark ID | Matches the stamp on the piece; verify it in BIS Care |
| Purity | For example 22K916, 18K750 | Matches the hallmark |
| Gross weight | Total weight of the piece | Weigh it in front of you if you can |
| Stone / bead / other weight | Weight of anything that is not gold | Stated in grams or carats, with what it is |
| Net weight | Gross minus non-gold materials | This is the gold you are paying gold rate for |
| Rate | Price per gram for that purity | Compare with the day’s published rate for the same purity |
| Gold value | Net weight × rate | Simple multiplication |
| Making charges / V.A. / wastage | Labour, design and metal loss | Per gram or %, and on which weight |
| Stone value | Price of the stones | Per carat or per piece, and what the stones are |
| Hallmarking charge | BIS hallmarking fee | Per article, not per gram |
| Taxable value | Sum of the lines above | Add it up |
| GST | Central + state tax, 1.5% + 1.5% | 3% of the taxable value |
| Old gold exchange (if any) | Value of your old gold | Weight, tested purity and deductions shown |
| Net payable | What you pay | Matches your payment |
BIS’s minimum requirement for hallmarked articles is narrower than this table. The bill must state the “description of each article, net weight of precious metal, purity in carat and fineness, and hallmarking charges” (BIS consumer FAQ). Everything else is good practice that you can ask for.
Gross weight, stone weight and net weight
Gross weight is everything on the scale: gold, stones, beads, enamel, and in some traditional pieces, lac or wax filling inside hollow work. Net weight is the gold alone.
Stones are often weighed in carats. One metric carat is 0.2 g, so:
- 1 ct = 0.2 g
- 2.5 ct = 0.5 g
- 10 ct = 2.0 g
If a bill shows stone weight in carats and gold weight in grams, convert before you subtract.
Why the difference costs money
Stones such as small cubic zirconia, glass, synthetic stones or low-value natural stones can cost far less per gram than 22K gold. If stone weight is not deducted, you pay the gold rate for them. A heavy kundan, polki or temple piece can carry a large share of non-gold weight, and some include lac or wax inside the gold casing. For these pieces, ask:
- What is the net gold weight, and how was it measured or estimated?
- What are the stones and other materials, and how are they priced?
- On which weight is the making charge calculated?
If the jeweller cannot separate the weights for a particular design, ask for that in writing. Also ask how the piece will be valued on exchange. On resale, jewellers value the gold content, so you will not get back the gold rate on non-gold material.
Rate and purity
The rate line should match the purity of the piece: a 22K rate for 22K916 jewellery, an 18K rate for 18K750 jewellery. Jewellers often display a rate board for 24K, 22K and 18K.
A quick check: an 18K rate should be about 75.0/91.6, or 0.819, of the 22K rate for the same jeweller on the same day. If it is higher, ask why.
Rates differ between cities, shops and websites for reasons such as sourcing costs and margins. Compare the rate on your bill with the same jeweller’s board on the day you buy, and with the purity on the hallmark. Our karat guide explains the fineness numbers.
Making charges, wastage and “V.A.”
This is the most variable line. Jewellers use different names and methods:
| Label on the bill | What it usually means |
|---|---|
| Making charges (MC) | Labour and design, quoted per gram or as a % of gold value |
| Wastage | Metal lost during manufacture, quoted as a % of gold weight |
| V.A. / Value addition | Making and wastage combined into one percentage |
| Flat / per piece | A fixed charge, used for some machine-made items and coins |
One jewellery retailer explains V.A. as the combination of making and wastage added to the gold value (BlueStone, making and wastage charges). The name changes; the question is the same: how much, and on what base?
Three ways the same 12% can be applied
| Method | Base | Effect |
|---|---|---|
| % of gold value on net weight | Gold only | Fair base |
| % of gold value on gross weight | Gold plus stones | You pay making charges on stone weight |
| Per gram on net weight | Gold only | Easy to compare between shops |
Making charges are a commercial choice, not a regulated rate. Compare them between jewellers for similar designs, and ask for the per-gram equivalent so that a percentage quote and a per-gram quote can be compared directly.
GST: 3% on the whole value
GST on gold, silver and diamond jewellery sold to a customer is 3% of the total transaction value. A government GST FAQ addresses this directly. It considers a 10 g gold chain sold for ₹30,000, made up of ₹28,000 of gold and ₹2,000 of making charges, and answers: “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).
What this means on your bill:
- GST is usually shown as CGST 1.5% + SGST 1.5% (or IGST 3% for an interstate online order).
- You should not see 3% on gold plus a separate 5% on making charges for a retail jewellery sale. The 5% rate in that FAQ applies to a registered job worker’s charges when a manufacturer supplies the gold. It does not apply to the customer’s bill.
- If you supply your own gold to a goldsmith for remaking, that is a job-work-type service and the tax can differ. Ask the jeweller to show the basis in writing.
Old gold exchange: how the old gold is offset, and how GST is shown, depends on how the jeweller records the transaction. Ask for three separate lines: the full value of the new piece with its GST, the value of your old gold (weight, tested purity, rate and deductions), and the net amount payable.
Hallmarking charge and HUID
BIS states that hallmarking charges are “paid per article irrespective of the weight of the article” (BIS consumer FAQ). The fee payable to the hallmarking centre for gold rose from ₹45 to ₹75 per article under the BIS (Hallmarking) Amendment Regulations dated 14 September 2026, subject to a minimum per consignment. The silver fee stayed at ₹35 per article. Both fees are subject to a minimum per consignment (₹200 for gold, ₹150 for silver) plus taxes (BIS (Hallmarking) Amendment Regulations, 2026, Gazette of India, 14 September 2026).
That fee is paid by the jeweller to the centre. The bill must show the hallmarking charges, which tells you what is being passed on to you.
Every hallmarked gold article sold in India must carry a six-character HUID (GJEPC Solitaire). It is good practice to have the HUID written on the bill. Before you pay, verify it in the BIS Care app (see our HUID guide).
Worked example 1: a gold ring with stones
Illustrative figures only. The rate is a round number chosen for easy arithmetic; use the day’s rate for real calculations.
- Gross weight: 6.250 g
- Stones: 2.25 ct of coloured stones, which is 2.25 × 0.2 = 0.450 g
- Net gold weight: 6.250 − 0.450 = 5.800 g, 22K916
- 22K rate: ₹10,000/g (illustrative)
- Making charges: 12% of gold value
- Stone price: ₹1,500 per carat
- Hallmarking: ₹75
| Line | Calculation | Amount (₹) |
|---|---|---|
| Gold value | 5.800 × 10,000 | 58,000.00 |
| Making (12% of gold value) | 58,000 × 0.12 | 6,960.00 |
| Stones | 2.25 × 1,500 | 3,375.00 |
| Hallmarking | per article | 75.00 |
| Taxable value | sum | 68,410.00 |
| GST 3% | 68,410 × 0.03 | 2,052.30 |
| Total | 70,462.30 |
The same ring billed on gross weight
Now suppose the stones are not deducted. Gold value and making charges are both calculated on 6.250 g, and the stones are not billed separately.
| Line | Calculation | Amount (₹) |
|---|---|---|
| “Gold” value | 6.250 × 10,000 | 62,500.00 |
| Making (12%) | 62,500 × 0.12 | 7,500.00 |
| Hallmarking | per article | 75.00 |
| Taxable value | sum | 70,075.00 |
| GST 3% | 2,102.25 | |
| Total | 72,177.25 |
The difference is ₹1,714.95, or 2.4% more, for the same ring. On a heavy necklace with a large stone or bead weight, the gap is far bigger. When you exchange the ring later, its gold content is still 5.8 g, not 6.25 g.
Worked example 2: comparing a per-gram quote with a percentage quote
Two shops quote for similar 10.000 g plain 22K chains on the same day, both at the illustrative ₹10,000/g:
| Shop A | Shop B | |
|---|---|---|
| Quote | 8% making | ₹950 per gram making |
| Gold value | 100,000 | 100,000 |
| Making | 8,000 | 9,500 |
| Taxable value (plus ₹75 hallmarking) | 108,075 | 109,575 |
| GST 3% | 3,242.25 | 3,287.25 |
| Total | 111,317.25 | 112,862.25 |
| Making per gram | ₹800 | ₹950 |
Converting both quotes into making charge per gram of net gold makes them directly comparable. Then compare finish, weight, clasp and return or exchange terms, not only the total.
Worked example 3: reading a “V.A.” bill
A bill shows: net weight 9.500 g, 22K rate ₹10,000/g, V.A. 14%.
- Gold value: 9.5 × 10,000 = ₹95,000
- V.A.: 95,000 × 0.14 = ₹13,300, which is ₹1,400 per gram
- Taxable value with ₹75 hallmarking: ₹108,375
- GST 3%: ₹3,251.25; total ₹111,626.25
If V.A. is quoted as a percentage of weight, so that 14% of 9.5 g is added as 1.33 g of gold, the result is the same arithmetic stated differently: 1.33 g × ₹10,000 = ₹13,300. Ask the jeweller which way it is calculated, and get it written on the bill.
Mistakes to avoid
- Paying gold rate for stones. Always ask for gross, stone and net weights.
- Comparing totals across designs. Compare per-gram making charges and net weight instead.
- Assuming the HUID proves the stones. The hallmark covers the metal’s purity only. Stones need their own description, and for valuable stones a laboratory report; see our guide to gem settings.
- Accepting a “kachha” (handwritten estimate) bill instead of a tax invoice. BIS describes a proper bill as necessary for complaints.
- Not reading the exchange terms. Ask how the piece will be valued if you exchange or sell it later, and whether making charges or stone value are recovered (usually not). See our old gold valuation guide.
A bill checklist before you pay
- Description, HUID and purity match the piece.
- Gross weight, stone or other weight, and net weight are all shown.
- Gold value = net weight × the rate for that purity.
- Making, wastage or V.A. is stated with its base, and you know the per-gram equivalent.
- Stones are named, with weight and price.
- A hallmarking charge appears per article.
- GST is 3% of the taxable value, shown as CGST + SGST or IGST.
- Exchange, buy-back and return terms are written on the bill or attached to it.
- The seller’s name, GSTIN and address are printed.
For the wider buying checklist, see our gold jewellery buying guide.
FAQ
What is V.A. in a gold bill?
V.A. usually stands for value addition: the jeweller’s making and wastage charges combined into one percentage. Ask whether it is a percentage of gold value or of gold weight, and on which weight it is calculated. Then convert it to a per-gram figure to compare shops.
What is the difference between gross weight and net weight in gold?
Gross weight is the whole piece, including stones and other materials. Net weight is the gold alone. Gold value should be calculated on net weight. BIS requires the net weight of precious metal on bills for hallmarked articles.
Is GST charged on making charges?
Yes. GST on jewellery sold to a customer is 3% of the total transaction value, including making charges, whether or not the making charge is shown separately.
Is GST on gold jewellery 3% or 5%?
For jewellery sold to a customer, it is 3% of the total value. The 5% figure seen online relates to a registered job worker’s charges in the trade, not the retail jewellery bill.
Should stone weight be deducted?
Yes. You should not pay the gold rate for non-gold material. Stones should be weighed and priced separately. Ask for both weights and how each is priced.
Why is a stone-weight chart not enough?
Charts give typical weights, but the weight that matters is your piece’s actual weight. Ask for the weights to be measured or stated for your specific piece on the bill.
Is the hallmarking charge per gram?
No. BIS states that hallmarking charges are per article, regardless of weight. The fee for gold has been ₹75 per article since 14 September 2026.
Sources
- Bureau of Indian Standards: Common consumer FAQ on hallmarking (bill contents; per-article charges; the need for authentic bills), checked 11 October 2026.
- Directorate of Commercial Taxes, West Bengal: FAQ on Gems & Jewellery under GST, questions 7 and 8 (3% on total value; 5% on job-work charges), checked 11 October 2026.
- Bureau of Indian Standards: BIS (Hallmarking) Amendment Regulations, 2026, Gazette of India Extraordinary, 14 September 2026 (Schedule IV hallmarking fees), checked 11 October 2026.
- GJEPC Solitaire: Hallmarked jewellery with 6-digit HUID made mandatory from 1st April, checked 11 October 2026.
- BlueStone (jewellery retailer): Making charges and wastage charges in gold jewellery, for the trade usage of “value addition”, checked 11 October 2026.
