How to Read a Gold Jewellery Bill in India — Every Line Explained
A plain-language guide to understanding your gold jewellery invoice in India. What each line means, what to verify, and what to ask the jeweller before you sign.
A gold jewellery bill looks simple but contains several figures that are easy to miss or misunderstand. Here's how to read every line — and what to question before paying.
A Typical Kerala Gold Jewellery Bill
Item: 22K Gold Necklace
Gross Weight: 25.400 g
Wastage: 0.600 g
Net Weight: 24.800 g
Rate (22K): ₹9,800 / gram
Gold Value: ₹2,43,040
Making Charges: ₹29,165 (12% on gold value)
Sub-total: ₹2,72,205
GST (3%): ₹8,166
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Total: ₹2,80,371
Let's go through each line.
Gross Weight vs. Net Weight
Gross weight is the actual weight of the piece you're buying — the metal as it is.
Net weight = Gross weight minus wastage (also called "touch loss"). Jewellers subtract a small percentage for the loss of metal during the manufacturing process (filing, polishing, cutting).
Wastage is typically 1–3% for machine-made pieces and 3–6% for handmade jewellery. Higher is a red flag — ask the jeweller what wastage they apply and why.
What you should check: Compare gross weight to the actual piece you're holding. Weigh it independently if you have doubts — any reputable jeweller will allow this.
Gold Rate
The gold rate used must match the Kerala board rate for the day. The jeweller cannot arbitrarily set a higher rate.
Check today's board rate → before visiting a showroom so you know the correct per-gram price.
Making Charges
This is where showrooms have the most flexibility — and where you can negotiate.
Making charges are typically shown as:
- Percentage of gold value — e.g., "12% on gold value"
- Per gram flat rate — e.g., "₹600/gram" (common for machine-made chains)
- Per piece flat charge — less common, used for very simple items
What's reasonable: | Design Type | Typical Making Charge | |-------------|----------------------| | Machine-made chain / plain bangle | 6–10% | | Standard necklace | 10–15% | | Antique / temple jewellery | 18–30% | | CNC / laser-cut | 15–25% | | Handmade filigree (Thrissur style) | 20–35% |
If the making charge on a simple piece is above 15%, ask for an explanation.
GST
GST is 3% on (gold value + making charges), no exceptions. It's mandatory and goes to the government — no jeweller can waive it. If a jeweller offers to "adjust" GST, it's illegal.
The GST breakdown should show:
- CGST: 1.5%
- SGST: 1.5%
Or IGST 3% if purchased across state lines (rare for retail).
Hallmark / HUID Number
Every BIS-hallmarked piece must have a 6-character HUID (Hallmark Unique ID) printed on the bill. This same code is engraved on the jewellery.
Verify it: Download the BIS Care App and enter the HUID code. It will confirm:
- Purity (916 = 22K, 999 = 24K, 750 = 18K)
- Hallmarking centre
- Jeweller registration
If the bill doesn't have a HUID, or the HUID doesn't verify, do not buy the piece.
Exchange / Old Gold Adjustment
If you traded in old gold, the bill should show:
Old Gold (22K, 18.2g): -₹1,78,360 (at ₹9,800/g)
Net Payable: ₹1,02,011
Check the exchange rate used. Some showrooms credit old gold at a rate 2–5% below the board rate. Negotiate this — especially for quality hallmarked gold.
Also verify the purity assessment. Ask the jeweller to test your old gold in front of you using the acid test or XRF machine.
What to Ask Before Paying
- "Can you show me the board rate you're using?" — cross-check with livegoldkerala.com
- "What is the wastage percentage and why?" — for machine-made items, > 2% is high
- "Is the making charge negotiable?" — often yes, especially for large purchases
- "What is the HUID for each piece?" — verify immediately in BIS Care App
- "What rate did you apply for my old gold exchange?" — should be at or close to board rate
Getting a Proper GST Invoice
You're legally entitled to a GST invoice for any purchase. It should include:
- Jeweller's GSTIN
- Your name and GSTIN (or PAN for purchases > ₹2 lakh)
- HSN code for gold jewellery (7113)
- Detailed break-up of gold value, making charges, and GST
Keep the invoice. It's your proof of purchase and essential for calculating capital gains if you sell later.
Red Flags on a Gold Bill
- No HUID number on bill or jewellery
- GST not itemised separately
- Making charges shown as "miscellaneous charges"
- Exchange rate for old gold significantly below board rate with no explanation
- Gross weight on bill doesn't match physical weight
A legitimate jeweller will always welcome scrutiny. If a showroom pushes back on basic questions, walk away.