Dhanteras on November 6 was marked by the usual festive fervour for gold purchases. A dip in prices caught the eye of many buyers, but the actual amount paid at the counter was a different matter. Let's break down the festive price trends and demystify
the charges on your gold bill.
Understanding the 'Price Correction'
Just before the auspicious buying period of Dhanteras, gold prices saw a noticeable dip. A price 'correction' is a financial term for a temporary drop in an asset's price after it has risen for an extended period. In late September and October 2026, domestic gold prices fell, influenced by factors like a stronger dollar and changes in international markets. This decline was seen by many as a good opportunity to invest, especially with the festive season around the corner. However, by early November, prices had begun to rebound, creating a dynamic environment for Dhanteras shoppers. This fluctuation is normal and is why the daily gold rate is just the starting point of your purchase.
The Biggest Variable: Making Charges
The most significant addition to your bill after the gold rate is the making charge. This is the cost jewellers levy for the labour and craftsmanship involved in converting raw gold into an ornament. These charges are not standardised and can range widely, from as low as 5% to over 25% of the gold's value. The complexity of the design plays a huge role; intricate, handcrafted pieces command higher making charges than simpler, machine-made items like chains. This fee is where jewellers have the most discretion, and it's also where savvy buyers can often find room for negotiation, especially on larger purchases.
Two Ways Jewellers Calculate Charges
Making charges are typically calculated in one of two ways. The first is a percentage of the gold's value. For example, if you buy 10 grams of gold valued at ₹1,40,000 and the making charge is 12%, you will pay an additional ₹16,800. The second method is a flat rate per gram of gold, which might range from ₹300 to ₹1,000. If the rate is ₹500 per gram on a 10-gram item, your making charge would be a straightforward ₹5,000. There is no single 'better' method; it depends on the price of gold and the specific piece. Always ask the jeweller to explain how they've calculated the charge.
The Final Layer: Goods and Services Tax (GST)
After the gold value and making charges are tallied, the Goods and Services Tax (GST) is applied. The final bill is subject to a 3% GST on the value of the gold itself. Additionally, a separate 5% GST is levied on the making charges. Some jewellers may present a consolidated bill where a flat 3% GST is applied to the total amount (gold value plus making charges), while others provide an itemised breakdown. An itemised bill offers more transparency, allowing you to see exactly how much tax you are paying on the metal versus the craftsmanship.
Putting It All Together: A Sample Bill
Let's imagine you bought a 10nd gram gold item on Dhanteras when the 22nd karat rate was approximately ₹1,39,800. Here's how the final bill could have looked with a 15% making charge : Value of Gold : ₹1,39,800 Making Charges (15%) : ₹20,970 Subtotal : ₹1,60,770 GST on Gold (3% of ₹1,39,80) : ₹4,194 GST on Making Charges (5% of ₹20,97) : ₹1,048 .5o Total Bill : Approximately ₹1 ,65 ,o12 .5o As you can see ,the making charges and taxes added over ₹25 ,ooo to the initial price of the gold ,demonstrating why the sticker price is only a fraction of the final cost.
