Specialised Investment Funds (SIFs): Structure & Taxation in India
How to Calculate Wastage in Gold Jewellery
Last Updated: 26th November 2025 - 05:56 pm
Buying gold jewellery in India is more than just a purchase — it’s an investment, a tradition, and often a part of celebrations like weddings or festivals. If you’ve ever noticed, the price you pay for a gold piece isn’t just the gold’s current rate. Two important components are wastage charges and making charges. Knowing how these work helps you understand your final cost better.
What is Wastage in Gold Jewellery?
Wastage refers to the small amount of gold that is lost during the crafting process. When jewellers melt, shape, file, or polish the metal, some gold is inevitably lost. While most of it can be recovered, a small portion is non-recoverable, and that’s why a wastage charge is added. The rate depends on the design — simple jewellery may have a wastage of 3–5%, while intricate or studded designs can go up to 10% or more.
What are Making Charges?
Making charges cover the labour cost for transforming raw gold into jewellery. This includes the craftsmanship, time, and skill required to create the design. In India, jewellers usually charge making fees either as a fixed amount per gram or as a percentage of the gold value, commonly between 8% and 20%.
How Wastage and Making Charges Affect the Final Price
Both wastage and making charges are added to the base gold price. For example:
Suppose the current gold rate is ₹6,000 per gram and you are buying a 10-gram necklace.
- Gold cost = 10 × ₹6,000 = ₹60,000
- Wastage (5%) = ₹3,000
- Making charges (10%) = ₹6,000
- Total before taxes = ₹60,000 + ₹3,000 + ₹6,000 = ₹69,000
Additional taxes like GST may apply on top of this.
In India, understanding these charges is crucial. They ensure that the jewellery you buy reflects both the value of gold and the skilled craftsmanship that goes into making each piece. This way, you pay a fair price and enjoy your jewellery worry-free.
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