For gold jewellery price calculation, this means the rate shown on a jeweller's board is already different from the amount that will appear on the final bill.
Jewellery pricing starts from the metal's rate per gram for the karat chosen by the buyer. Making charges are then added to the metal value and taxes are applied on top. Only the metal rate changes daily, while the other components of the bill are decided separately.
Purity decides the per-gram rate
The rate per gram depends on the purity of the gold, which is stated either in karats or as a fineness figure out of 1,000. Individuals buying jewellery will usually see both on the tag.
- 916 is 22K gold, which is 91.6% pure
- 750 is 18K gold, which is 75% pure
- 585 is 14K gold, which is 58.5% pure
- 375 is 9K gold, which is 37.5% pure
A lower karat piece has less gold in it, so the rate applied per gram for that piece is also lower.
As per one report, 9K gold was brought into the mandatory hallmarking scheme from 1 July 2025. This is a single source claim and BIS notices have not been matched against it.
Hallmarking, making charges and tax
Hallmarking is the official purity check under the Bureau of Indian Standards (BIS) system, and it has been mandatory for gold jewellery in India since June 2021. The scheme has covered hallmarked grades since 1 January 2017, and pieces weighing under 2 grams are exempted.
Jewellers calculate the metal value first, and the making charges are then added to it.
