Gold Making Charges & Wastage Explained: How to Calculate Your Bill
Ever wondered why the price quoted on live gold rate tracking apps is so different from the final invoice given at traditional jewellery counters? The answer lies in two terms: making charges and wastage (tunch). Understanding how these fees are calculated can save you thousands of rupees on every purchase or exchange.
Deconstructing Your Gold Bill: The 4 Core Components
| Component | What It Means | Standard Industry Range |
|---|---|---|
| Live Bullion Rate | Pure metal cost based on current market rate per gram | Transparent / Market-linked |
| Making Charges | Craftsmanship fee charged per gram or as a % of gold cost | 8% to 35% (0% to 3% for coins) |
| Wastage % | Gold lost during melting, shaping, and soldering | Should be merged into making charges |
| GST (3%) | Mandatory government taxation applied on (Gold + Making) | Fixed 3% nationwide |
How to Prevent Overpaying for Gold
- Separate metal value from labor cost: Always insist on an itemized bill that explicitly separates the daily gold rate from the craftsmanship fee.
- Buy 24K coins for savings: Coins carry near-zero wastage compared to intricate bridal bangles or stone-studded necklaces.
- Ask for net weight vs gross weight: Never pay the gold rate per gram for heavy enamel work, lacquer fillings (lacc), or non-precious beads.
Rule of thumb: Making charges are a cost of wearability, not investment. When buying pure wealth, choose low-making 24K bullion coins over high-making designer jewellery.
At PMJ GOLD, we offer zero-hidden-fee pricing with live market rates updated in real time. Check live bullion prices now →
