The price tag on a piece of jewellery is not one number — it is five or six numbers stacked on top of each other. Once you understand each layer, you will never overpay again.
Every time you buy jewellery in India, you are paying for gold, craftsmanship, stones, wastage, a retailer margin, and tax. Most stores do not show you this breakdown. Here is what is inside every price tag.
This is the base. Gold is a globally traded commodity and its price changes every day. Reputable jewellers price gold at the IBJA (India Bullion and Jewellers Association) rate, plus GST. Always ask: which rate are you charging today? Verify it at ibjarates.com before you pay.
This is the craftsman's fee. It is charged as a flat rate per gram (e.g. Rs.400/g) or a percentage of the gold value (e.g. 12%). Machine-made jewellery has lower charges. Handcrafted, filigree, and kundan work carry higher charges — and rightly so. What is not right is paying handcraft prices for machine work.
When gold is melted and shaped, some metal is lost in the process. Jewellers charge you for this as a percentage of gold weight. Industry standard is 5–8%. Anything above 12% deserves a clear explanation. Unscrupulous sellers hide significant profit inside an inflated wastage figure.
Stone pricing varies enormously based on grade, source, and how much the jeweller believes they can charge. Always ask for the stone certificate number (GIA, IGI, or GRS for coloured stones) and verify it independently. The certificate grade and the charged price should be proportional.
After all the above, the retailer adds their profit. This ranges from 5% to 25% depending on the brand. Large branded chains charge more to cover advertising and real estate. Trusted family jewellers often carry lower margins and more transparency.
GST on gold jewellery is 3%. On making charges it is 5%. This is non-negotiable and applies everywhere. Your bill must show GST separately. If it does not, the store is likely not GST-compliant — a serious red flag.
"The jewellery industry has no obligation to show you the breakdown. So you have to ask. A jeweller who refuses to give you an itemised quote is hiding something. Every reputable jeweller will give you this without hesitation."Surabhi Agarwal
What is today's gold rate, and which source are you using? Verify at ibjarates.com.
What are the making charges — flat or percentage? Ask for both the rate and the reason.
What is the wastage percentage? Anything above 10% deserves justification.
Can I have an itemised receipt? Gold value, stone value, making, wastage, and GST — separately.
If a store cannot explain where every rupee is going, walk away. Message me and I will help you decode any quote.
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