Buying Gold This Diwali? Check GST, Making Charges and Hallmark Before Paying

Updated: 16 October 2026

The gold rate on the display board is only the starting point of a jewellery purchase. Making charges, the weight used for pricing and the final tax calculation can change what leaves your bank account. A festive offer is easier to judge when you can explain every line of the quotation.

Before choosing a chain, ring or pair of earrings this Diwali, use the following checks. This is a consumer guide to buying finished gold jewellery, not an announcement of a new Diwali tax.

Check how GST is calculated

CBIC's Gems and Jewellery FAQ states that a retail sale of finished jewellery attracts 3% GST on the total transaction value, including making charges even if they appear on a separate line. A separate charge on the bill does not, by itself, turn part of that sale into an independent service. Source: CBIC, Gems and Jewellery FAQ 7.

Do not apply this example automatically to repairs, remaking your own gold or a separate job-work arrangement. Those transactions need their own classification and valuation review. Ask the jeweller what supply the invoice records.

A sample finished-jewellery bill

This fictional quotation uses round amounts to explain the arithmetic. It is not today's gold price and assumes no stones, discounts or additional charges.

Recalculate the subtotal and tax on your phone before paying. For a real purchase, ask the seller to identify every amount included in the taxable value and explain any discount.

Compare the complete quotation

Imagine two shops offering a similar design. One advertises a large reduction in making charges, while the other quotes a lower final amount without a festival banner. Neither advertisement tells you enough to choose. Get written quotations for the same purity, comparable net gold weight and similar design.

Ask whether the making charge is a fixed amount, a price per gram or a percentage. If it is a percentage, establish the base used. Request separate explanations for any wastage, stone value or other addition. Keep the quoted total in view when comparing offers; an attractive percentage saving may refer to only one component.

Photograph or save the agreed quotation with the seller's permission. If the amount changes at checkout, ask for an updated breakdown before authorising payment. This small pause makes it easier to resolve a misunderstanding while the salesperson and the item are still in front of you.

Verify the hallmark before leaving the shop

BIS provides a Verify HUID feature in its official BIS Care app for checking hallmarked gold jewellery. Ask the jeweller to show you the item's HUID, enter it in the app and compare the returned details with the article being offered. Source: BIS consumer-protection guidance.

If something does not match or the code cannot be verified, seek clarification before purchasing. A failed lookup alone is not proof of fraud, but an unresolved mismatch is a reason to pause. Save the details of the item and the seller's explanation rather than relying on a verbal assurance you may later struggle to recall.

Keep a bill that explains your purchase

Request an itemised invoice that identifies what you bought and how the final amount was reached. For your own records, check the item description, purity, net precious-metal weight, making charges, other additions, tax and payment total. Keep the receipt with the order confirmation and payment reference.

Also ask for return, exchange and buyback terms in writing. Check the return window, any deductions, treatment of stones, and whether the benefit is cash or store credit. Do not assume that a purity hallmark guarantees a particular resale price or a full refund of your original purchase cost.

For a gift, find out which documents the recipient will need for resizing or exchange. Store a readable digital copy of the paperwork so that fading thermal receipts do not become a problem months later.

Your final check at the counter

Match the selected item to the quotation, verify the hallmark details, recalculate the total and read the after-sales terms. These checks are especially useful when a crowded shop or a limited-time offer makes you feel rushed.

If the GST portion of your jewellery invoice is unclear, Tax Filing Guru can help review the bill and the nature of the transaction. Share the complete invoice rather than only the tax line so the calculation can be understood in context.