Quick Answer
Check for the 6-digit HUID on the hallmark, verify the day's gold rate before you walk in, ask for making charges as a separate per-gram number, and always take a GST bill. These four things protect you at any price point.
India buys more gold jewellery than any country in the world. And yet, a surprising amount of that gold still changes hands without proper hallmarking, without itemised bills, and without buyers knowing exactly what they're paying for.
I've been working with gold at Kiran Jewels on Birhana Road since 1999. In that time, the most common source of buyer regret I've seen isn't the price — it's buying without the right information. This guide covers everything you actually need to know before you spend money on gold jewellery in India.
First, Understand What You're Actually Paying For
Gold jewellery price in India is calculated like this:
Total Price = (Fine Rate × Net Gold Weight) + Making Charges + 3% GST
Three separate things. Most buyers only think about the first one. Let me break down all three.
Fine Rate is the daily market price for 24K pure gold, published by MCX and IBJA (India Bullion and Jewellers Association). For 22K jewellery, you apply 91.6% of that rate. Most jewellers display this rate near the entrance — if yours doesn't, that's worth noticing.
Net Gold Weight is the weight of the gold itself, excluding any stones or non-gold components. For plain jewellery this is straightforward. For studded pieces, always ask specifically: "What is the net gold weight?" — not just the gross weight of the piece.
Making Charges is where the most variation exists, and it's the only genuinely negotiable part of the price. More on this below.
Gold Purity in India: What the Stamps Actually Mean
Gold purity is expressed in karats and confirmed through the BIS (Bureau of Indian Standards) hallmarking stamp.
| Karat | Purity | BIS Stamp | Common Use |
|---|---|---|---|
| 24K | 99.9% | 999 | Coins, bars — not jewellery |
| 22K | 91.6% | 916 | Standard jewellery in India |
| 18K | 75.0% | 750 | Diamond and polki jewellery |
| 14K | 58.5% | 585 | Designer and export pieces |
916 is what you'll see most often, and it's what most Indian jewellery is made in. The remaining 8.4% is copper or silver added for structural strength — pure 24K gold is genuinely too soft to hold the form of a piece of jewellery.
When a jeweller says "22-karat gold," the BIS stamp 916 is what confirms it's actually true. Without the stamp, you're taking their word for it.
The HUID — The Most Important Change in Indian Jewellery Buying
Since April 2023, every hallmarked piece sold in India must carry a 6-digit alphanumeric HUID (Hallmark Unique ID). This is a game-changer for buyers.
Download the BIS Care app (free, on Android and iOS), enter the 6-digit code stamped on the piece, and it instantly tells you:
- The registered purity grade
- Which assaying centre certified it
- Which BIS-registered jeweller sold it
If a piece doesn't have an HUID, it's not compliant with current Indian law. Full stop. I'd walk away from that purchase regardless of price.
Making Charges: The Part Most Buyers Don't Question Enough
Making charges cover the artisan's labour and the jeweller's margin on design. In Kanpur's retail market, ₹350–₹600 per gram is a reasonable range for standard plain 22K jewellery. Complex handcrafted work, bridal sets, and kundan pieces justify higher charges — but you should still see an itemised number, not a vague percentage.
Here's a practical tip: always ask for making charges as a per-gram figure, not as a percentage of total value. A percentage sounds small but grows automatically every time the gold price rises. Per-gram is fixed, transparent, and easy to compare across stores.
At Kiran Jewels, our making charges are itemised on every invoice. Our entry-level baby gold range ("Pehla Zevar") carries 3.5% making charges on pieces up to 5 grams — we set that intentionally to make quality, hallmarked gold accessible for first-time buyers.
For bridal and heavy pieces, making charges are quoted individually based on the actual complexity of the work. If a jeweller can't tell you exactly what the making charge is before you've agreed to buy — that's a red flag.
Plain Gold vs. Stone-Studded: Know the Difference Before You Buy
If you're buying jewellery partly as an investment or store of value, keep plain gold and studded pieces as two separate decisions.
Plain gold is priced almost entirely on gold weight and purity. Resale is clean — most established jewellers, including us, buy back at 100% of current gold value. Making charges aren't returned, which is standard across the industry.
Stone-studded jewellery involves significant value in non-gold components — diamonds, rubies, polki, emeralds. Assessing that value fairly requires certification (GIA or IGI for diamonds, independent appraisal for coloured stones). The making charges are much higher. And the resale market at fair value is much narrower than for plain gold.
My honest advice: buy studded jewellery because you love the piece and want to wear it. Don't buy it primarily as an asset. Buy plain gold for that.
The Documents You Should Always Walk Out With
This is non-negotiable regardless of how much you're spending:
- GST invoice — must show your name, the jeweller's GSTIN, item description, net gold weight, making charges, and GST split as separate line items
- PAN details — required for any single purchase above ₹2 lakh
- HUID record — your proof of purity
- Buyback/exchange policy in writing — confirm the terms before you pay, not when you want to sell
Buying without a bill doesn't just create a compliance headache — it removes your legal recourse if the piece ever fails a purity test. It also creates problems at resale, inheritance, and income tax scrutiny. There is no reason a reputable jeweller should hesitate to give you a proper bill.
Reselling or Exchanging Old Gold
When you want to sell or exchange old gold jewellery, come back to the original jeweller first. Most established jewellers offer full buyback at the current market rate on gold value. You already know the piece's history — the jeweller does too.
Selling to a third-party jeweller almost always gets you a lower rate. They have to run their own purity test, factor in uncertainty about the piece's origin, and price their risk. You end up losing money you didn't need to lose.
For exchange — old gold toward a new purchase — terms are usually better than a straight buyback. Confirm whether exchange credit is calculated on gross or net gold weight, and read the exchange policy before agreeing.
FAQs
What does 916 mean on gold jewellery? It's the BIS purity stamp for 22-karat gold, indicating 91.6% pure gold content. The most common grade for jewellery sold in India.
Is BIS hallmarking mandatory in India? Yes, since June 2021 for all registered jewellers. Since April 2023, every piece must also carry a 6-digit HUID.
How do I verify a gold hallmark? Download the BIS Care app, enter the 6-digit HUID stamped on the piece, and check the purity, registered jeweller, and assaying centre details instantly.
What is a fair making charge for plain gold jewellery? For plain 22K designs, ₹350–₹600 per gram is a reasonable range in most Indian retail markets. Handcrafted, kundan, or bridal work justifies higher charges — ask for an itemised per-gram figure regardless.
Should I buy gold jewellery as an investment? Plain BIS-hallmarked gold does retain value, but making charges are a cost you don't recover at resale. For pure investment, Sovereign Gold Bonds (SGBs) or gold ETFs are more efficient. Jewellery is most worthwhile when it serves both emotional and financial purposes — not just one.
Vikas Rastogi, GIA Graduate Diamonds | Owner, Kiran Jewels Kanpur 58/44A, opposite ICICI bank, Birhana Road, Kanpur — Mon–Sat 11:00 AM – 8:30 PM