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Gold jewelry is a favorite for many. When you decide to buy some, you not only pay for the gold itself but also for the making charges and GST. Ever thought about how those making charges are figured out? They actually play a big role in the total cost of the jewelry. The making charges can vary based on the type of jewelry you’re looking at.
So, how do they determine those making charges? Experts say it all comes down to the time it takes to create the piece. Typically, making charges range from 10% to 30% of the gold price. This also includes about a 10% commission for the retailer. Generally, the fancier the design, the more you’ll pay in making charges, while simpler designs come with lower fees.
In essence, the making charge reflects the labor costs involved in crafting the jewelry, which includes the time and effort spent on the design and any added gems or stones. Jewelry that’s more intricate or time-consuming to make usually has a higher making charge.
Making charge refers to the fee charged for transforming raw gold into jewelry, often called Gold Jewellery Making Charge. This fee covers the artisans’ labor and other costs associated with turning gold bars into beautiful pieces of jewelry. According to Aditya Birla Capital’s website, these charges in India can vary from 5% to 30%, depending on the brand.
Calculating Making Charges
When figuring out the final price of jewelry, several factors come into play. The price of gold (whether it’s 22 carat or 18 carat) is multiplied by its weight in grams. Additionally, the making charge and a 3% GST are added to both the gold price and the making charge. For example, if you’re looking to buy a gold chain that weighs 9.6 grams and the price for 10 grams of 22 carat gold at a jewelry store is Rs 27,250, the calculation would go like this:
Price of 1 gram of gold = Rs 27,350 / 10 = Rs 2,735.
Price of the 9.60-gram gold chain = Rs 2,735 x 9.60 = Rs 26,256.
Making charge (10%) = Rs 2,625.
Total so far = Rs 28,881.
3% GST on the total = Rs 866.44.