Start with the Correct Gold Rate
Before you even step into a store, check the daily gold rate. Prices fluctuate daily based on international markets. Most jewellery in India is made from 22-karat (22K) gold, which has a purity of 91.6%. Pure gold is 24K, but it's too soft for intricate
jewellery. Always check the 22K rate for the day from a reliable source. Rates can vary slightly between cities, so look up the rate for your specific location. This daily rate is the foundation of your bill, and knowing it prevents any unscrupulous jeweller from quoting an inflated base price.
Hallmarking Is Your Guarantee of Purity
Since 2021, hallmarking on gold jewellery is mandatory in India. This is your single most important check for purity. Every hallmarked item must have three symbols: the BIS logo (a triangle), the purity mark (e.g., 916 for 22K gold), and a six-digit alphanumeric Hallmark Unique Identification (HUID) number. This unique HUID code is your key to transparency. You can, and should, verify it instantly using the 'BIS CARE' mobile app. Simply enter the HUID to see details like the jeweller's name, purity, and item type, confirming your purchase is genuine. Do not buy any jewellery that lacks these three marks.
Demystifying the Jeweller's Bill
A fair deal starts with a transparent bill. Your invoice should clearly break down the price into three main components: the value of the gold, the making charges, and the Goods and Services Tax (GST). The final price is calculated as: (Gold Value + Making Charges) + GST. The Gold Value is simply the weight of your item in grams multiplied by the day's gold rate. Always insist on an itemised bill. If a jeweller presents a single, all-inclusive figure, it’s a major red flag.
Negotiating Making Charges
Making charges, or the cost of craftsmanship, are the most variable part of your bill and often the only negotiable component. These can be charged as a percentage of the gold's value (typically ranging from 8% to 25%) or as a flat rate per gram. Machine-made items like simple chains will have lower making charges, while intricate, handcrafted pieces will have higher ones. There's no standard rate, so this is where you can negotiate for a better deal, especially during festive seasons or if you are making a large purchase. Always compare making charges between a few different jewellers before deciding.
Understanding GST Calculations
GST on gold jewellery is straightforward but has two parts. A 3% GST is applied to the value of the gold itself. Separately, a 5% GST is applied to the making charges. The final bill will show GST calculated on the total of the gold value plus the making charges. For example, on a purchase with a gold value of ₹50,000 and making charges of ₹5,000, you pay 3% GST on the gold (₹1,500) and 5% GST on the making charges (₹250). Ensure your bill reflects this correct calculation.
Ask About the Buy-Back Policy
A jeweller's buy-back or exchange policy is a strong indicator of their fairness and confidence in their product. Before purchasing, ask how they handle returns. Reputable jewellers will typically offer to buy back their own jewellery at the prevailing gold rate for the net weight of the gold. However, remember that making charges and GST are non-refundable. A clear and fair buy-back policy shows that the jeweller stands by the purity and value of what they sell. If a jeweller is vague or has a poor buy-back offer, it might be best to shop elsewhere.
