How do I calculate the fair rate for 22 karat gold?

Multiply the day's 24 karat rate by the purity's fineness. 22K is 916 parts per thousand, so a fair 22K rate is close to 0.916 of the 24K rate; 18K is 0.75 and 14K is 0.585. Jewellers set their own board rates, so small differences are normal.

Is GST charged on making charges?

Yes. When you buy finished jewellery, GST at 3% applies to the gold value and the making charge together, along with stones and other charges on the bill.

What do I get back when I exchange jewellery?

At best, the gold rate for the piece's purity on its net gold weight. The making charge, wastage, stones and GST are not paid back, and many jewellers also deduct a percentage for melting or testing. Ask for the exchange terms in writing when you buy.

MoneyClarityTech · Gold

Rebuild the jeweller's bill before you pay it.

Enter the day's 24 karat rate, the weight, the purity and the making charge in whichever form the counter quoted it. You get the bill line by line, the price you are really paying per gram of gold, and what the same piece would fetch back on exchange.

The gold

Today's 24K rate₹ per gram, from the jeweller's board or any rate page

Purity of the pieceFrom the hallmark, for example 22K916

Jeweller's rate for this purityOptional — ₹ per gram as written on the bill. Leave 0 to use the fair rate

Gross weightGrams, the whole piece

Stone and bead weightGrams. Should be taken off before the gold rate is applied

Stone charges₹, priced separately from the gold

Making, wastage and other charges

Making charge quoted as

Making charge% of the gold value

Wastage, if shown separately% of the gold value. Leave 0 if it is inside the making charge

Other charges on the bill₹ — hallmarking, certificate, packing. GST is added on them

A fair bill for this piece

—

Per gram of gold in it—

Gold value—

Above the gold value—

The bill, line by line

—

Rate used—

Gold value—

Making charge—

Wastage—

Stones—

Other charges—

GST at 3%—

Total—

What it fetches back

At best a jeweller pays the gold rate on the net gold weight. Making, wastage, stones and GST are not paid back. Put the exchange deduction you were quoted to see the rest.

Exchange deduction% taken off the gold value for melting or testing. Ask for it in writing

Paid back on exchange, at today's rate—

Gone the day you walk out—

Handing in old gold

Old gold is usually valued at the day's rate for its purity, after melting and testing. Whether GST on an exchange should run on the new piece's full price or only on what you pay in cash is disputed in the trade, so both are shown.

Old gold, net weightGrams of gold after stones are removed. Leave 0 if not exchanging

Old gold purity

Old gold value, after the deduction above—

You pay — GST on the full price—

You pay — GST on the net amount—

Difference between the two methods—

Five checks at the counter

Rate against purity

Divide the rate on the bill by the day's 24K rate. For 22K it should land close to 0.916, for 18K close to 0.75. A few rupees either way is the jeweller's board rate; much more is worth a question.

Net weight, not gross

On anything with stones, beads or enamel, the gold rate belongs on the net gold weight. Stones are priced on their own. On resale only the net gold is ever paid for.

Making and wastage in rupees

A percentage, a per-gram rate and a flat charge look different and can be the same amount. Ask for making and wastage together as one rupee figure — the only form in which two shops can be compared.

The HUID on the piece and the bill

Every hallmarked piece has a six-character HUID. Check it in the BIS Care app with Verify HUID, and make sure the same number is printed on your bill.

Cash has a ceiling

The Income-tax Act, 2025 bars anyone from receiving ₹2 lakh or more in cash for one transaction. A larger bill is paid through a bank, card or UPI.

How to read this. The fair rate for each purity is the 24K rate you enter multiplied by the purity's fineness — 0.916 for 22K, 0.75 for 18K, 0.585 for 14K and 0.375 for 9K; 24K is taken at the full rate. GST is 3% on the gold value, making, wastage, stones and other charges together, which is how finished jewellery is billed. Jewellers set their own board rates and charges, and exchange terms differ by shop, so treat every figure as a method for checking a bill rather than a quotation. Nothing you enter leaves your phone. Education only — not a recommendation to buy or sell gold.