First, Decode the Daily Gold Rate
Before you even step into a store, it's wise to check the day's gold rate. As of August 21, 2026, 22-carat gold, the standard for most Indian jewellery, is trading around ₹14,600 per gram, while 24-carat gold is near ₹15,900 per gram. Prices have been
firm, influenced by global trends, a fluctuating US dollar, and steady domestic demand ahead of the festive season. Remember that the rate displayed at the shop is for the raw gold only. The final price of your jewellery will include several other components, so use the day's rate as your baseline for calculation.
Insist on BIS Hallmarking for Purity
The single most important check is for the Bureau of Indian Standards (BIS) hallmark. This is your guarantee of purity. Since hallmarking became mandatory in most parts of India, every piece of gold jewellery must have specific marks. Look for three key symbols: the BIS logo (a triangle), the purity grade (like '22K916' for 22-carat gold, which means it is 91.6% pure), and a six-digit alphanumeric Hallmark Unique Identification (HUID) number. This HUID allows for traceability and confirms the jeweller is compliant. Do not purchase any gold without this certification.
Question the Making Charges
This is where the final cost of jewellery can vary significantly. Making charges, or 'karigari', are the labour costs for crafting the piece. They can be a percentage of the gold's value (ranging from 5% to over 25%) or a flat rate per gram. Machine-made chains will have lower making charges, while intricate, handmade bridal sets will command the highest. Always ask for a clear breakdown of these charges and don't hesitate to negotiate, especially on simpler designs. Some jewellers also add 'wastage' charges, which should be questioned and clarified. It's crucial to remember that making charges are not recovered when you sell or exchange the gold.
Understand the GST Calculation
The Goods and Services Tax (GST) is another key component of your final bill. In India, a 3% GST is levied on the value of the gold itself. On top of that, a 5% GST is applied to the making charges. Your final invoice should clearly show the price of the gold, the making charges, the 3% GST on gold, and the 5% GST on the making charges as separate line items. This transparency is mandatory and helps you understand exactly what you are paying for.
Clarify the Jeweller's Buy-Back Policy
Think of your purchase as a long-term asset. Before you buy, ask about the jeweller's buy-back or exchange policy. Most reputable jewellers will repurchase their own jewellery based on the prevailing gold rate of the day. However, they will not refund the making charges or the GST you paid. Some may also deduct a small percentage from the gold's value. Policies differ between stores; some only offer store credit for exchange, while others might provide cash. Knowing these terms upfront protects you from future disappointment if you decide to sell or upgrade your jewellery.
