Gold Jewellery Buying Guide: Understand Wastage, Making Charges, Hallmarking Fees and 3% GST in Chennai

The price of 22-carat gold in Chennai has increased by ₹25 per gram on November 4, 2026, taking the rate to ₹12,825 per gram. However, buying gold jewellery involves more than checking the daily gold rate. Customers must also account for wastage charges, making charges, BIS hallmarking fees and GST, which increase the final purchase price.

Gold continues to be an important purchase for families in Chennai, particularly during wedding seasons, festivals and special occasions. Understanding these additional charges can help customers calculate the actual cost of jewellery and make informed purchasing decisions.

As of November 4, 2026, the 22-carat gold rate in Chennai stands at ₹12,825 per gram. Accordingly, 10 grams of gold cost ₹1,28,250, while one sovereign (8 grams) is priced at ₹1,02,600.

1. What Is Gold Wastage Charge? How Is It Calculated?

Wastage, also known as making loss, is the charge collected to account for gold lost during jewellery manufacturing processes such as shaping, carving, cutting and polishing.

Depending on the jewellery design, wastage charges generally range between 3% and 10%.

For example, if a jeweller applies 5% wastage to 10 grams of 22-carat gold priced at ₹1,28,250, the additional wastage charge will be ₹6,412.50.

Simple jewellery designs, such as plain gold rings and chains, generally attract lower wastage charges. Intricate designs and detailed craftsmanship may involve higher percentages.

Customers should always ask jewellers about the wastage percentage before confirming their purchase.

2. Gold Making Charges and BIS Hallmarking Fees

Making charges are the fees collected for the labour and craftsmanship involved in manufacturing gold jewellery.

These charges vary depending on the design, workmanship and complexity of the jewellery.

For example, if the making charge is ₹500 per gram, the labour cost for 10 grams of jewellery will be ₹5,000.

Apart from making charges, customers should also consider BIS hallmarking fees. Hallmarking certifies the purity of gold jewellery.

Effective from September 2026, the BIS hallmarking fee is ₹75 per piece of jewellery, with a minimum charge of ₹200 per batch.

When old gold jewellery is exchanged or melted to create new jewellery, additional expenses may also arise from purity testing, melting and material loss.

3. How Is 3% GST Calculated on Gold Jewellery?

GST is another important component of the final gold jewellery bill.

A 3% GST is applicable to the total transaction value, including the gold price, wastage charges and making or labour charges.

Consider the following example for 10 grams of 22-carat gold:

- Gold value: ₹1,28,250

- Wastage charge (5%): ₹6,412.50

- Making charges: ₹5,000

- Hallmarking fee: ₹75

Total before GST: ₹1,39,737.50

- GST at 3%: ₹4,192.13

4. What Is the Final Price of 10 Grams of Gold Jewellery in Chennai?

Based on the above calculation, the estimated final price for 10 grams of 22-carat gold jewellery in Chennai on November 4, 2026, is approximately ₹1,43,930.

This calculation assumes:

- 22-carat gold rate of ₹12,825 per gram

- 5% wastage charge

- Making charge of ₹500 per gram

- Hallmarking fee of ₹75

- GST at 3%

The actual jewellery price may differ from one showroom to another depending on the design, wastage percentage and making charges.

5. What Should Customers Check Before Buying Gold?

Before purchasing gold jewellery in Chennai, customers should:

- Check the latest 22-carat gold rate.

- Ask for a clear breakdown of wastage charges.

- Compare making charges across jewellery stores.

- Verify BIS hallmarking details.

- Check how GST is calculated.

- Review the complete bill before making payment.

Conclusion

Understanding gold wastage, making charges, hallmarking fees and GST is essential when buying jewellery. Even when the daily gold rate is known, additional charges can significantly affect the final bill.

With 22-carat gold priced at ₹12,825 per gram in Chennai on November 4, 2026, customers should request an itemised price breakdown from jewellers and compare the charges before purchasing gold jewellery.