Gold prices in India follow the international price but include several local components. Knowing them helps you judge whether a jeweller's quote is fair.
Key takeaways
- The base is the international price in US dollars per troy ounce (31.1035 g).
- It is converted at the USD/INR rate and 6% import duty (5% BCD + 1% AIDC) is added.
- Retail rates add dealer premiums; jewellery adds making charges, hallmark fee and 3% GST.
- City rates differ slightly because of local premiums and association pricing.
Building the price step by step
- Global spot price (USD/oz) ÷ 31.1035 = USD per gram
- × USD/INR = ₹ per gram (landed, before duty)
- + 6% import duty
- ± bank/dealer premium
- × fineness for karat (e.g. 916/999 for 22K)
- + making charges + hallmark fee
- + 3% GST on the total
Example jewellery bill (10 g, 22K)
| Component | Amount |
|---|---|
| Gold value (10 g × ₹14,095) | ₹1,40,950 |
| Making charges @12% | ₹16,914 |
| Hallmark fee | ₹45 |
| GST @3% | ₹4,737 |
| Total | ₹1,62,646 |
Why prices differ between sources
- MCX futures quote excludes GST and retail premium.
- Bullion association (IBJA) rates are benchmark prices.
- Jewellers' board rates include local premiums.
Your action checklist
- Check today's city rate for your purity before visiting a jeweller.
- Insist on BIS hallmark with HUID and verify it on the BIS CARE app.
- Get making charges, stone weight and GST itemised on the invoice.
- For investment, prefer regulated paper options (ETF, gold/silver funds).
- Keep invoices for capital-gains calculation when you sell.
FAQs
Does GST apply on making charges?
Yes — 3% GST applies on the full jewellery invoice including making charges.
Why do Kerala and Tamil Nadu rates differ from Delhi?
Local association pricing, transport and demand create small differences.
Check today's gold rate and use the gold price calculator.
