22K vs 24K Gold: Purity, Price, and Making Charges Explained
When buying gold jewellery in India, two numbers matter most: the purity (like 22K or 24K) and the making charges. Understanding both is the easiest way to make sure you are paying a fair price. Here is what they mean and how the final bill is put together.
What “karat” actually means
Karat measures how much of an item is pure gold, out of 24 parts. So 24K is essentially pure gold (99.9%), while 22K is 22 parts gold out of 24 — about 91.6% pure. The remaining portion is other metals such as copper and silver, added to make the gold harder and more durable.
Gold karat, purity and typical use.
| Karat | Purity | Hallmark | Typical use |
|---|---|---|---|
| 24K | 99.9% | 999 | Coins and bars (too soft for jewellery) |
| 22K | 91.6% | 916 | Traditional Indian gold jewellery |
| 18K | 75.0% | 750 | Diamond and Western jewellery; more durable |
| 14K | 58.5% | 585 | Hard-wearing, with a lower gold content |
How purity affects value
Because 22K jewellery is only 91.6% gold, its metal value is 91.6% of the pure-gold rate for the same weight. For example, 10 g of 22K gold at a pure rate of ₹6,500 per gram is worth 10 × 6,500 × 0.916 = ₹59,540 of gold — not ₹65,000. This is why knowing the purity matters when comparing prices.
Making charges and GST
On top of the gold value, jewellers add making charges for the craftsmanship — usually a percentage of the gold value (often 6% to 25%) or a flat rate per gram. These are negotiable, and they are where two jewellers quoting the same gold rate can differ a lot in final price.
Finally, GST of 3% is applied on the gold value plus making charges. Jewellery is treated as a “composite supply” with gold as the main item, so the whole bill is taxed at 3% — a jeweller charging 5% separately on making charges is not doing it correctly.
Checking your bill
Putting it together for our example: ₹59,540 gold + 12% making (₹7,145) + 3% GST (₹2,001) = about ₹68,685. Seeing each part separately makes it obvious where your money is going, so you can question an inflated making charge. Our Gold Jewellery Price Calculator lays out exactly this breakdown — enter the weight, purity, rate, and making charges from your quote to check it in seconds.
Frequently asked questions
What is the difference between 22K and 24K gold?
24K is essentially pure gold (99.9%) but too soft for everyday jewellery, so it is used for coins and bars. 22K is 91.6% pure, with other metals added for strength, and is the standard for Indian gold jewellery.
How much GST is charged on gold jewellery?
GST on gold jewellery is 3%, applied to the gold value plus making charges together, because jewellery is treated as a single composite supply.
Are making charges fixed?
No. Making charges vary widely between jewellers — from about 6% to 25% of the gold value, or a flat rate per gram — and they are negotiable. Comparing them is the best way to avoid overpaying.
Why do I get less when I sell or exchange old gold?
When selling, you are paid for the pure gold content only, not the making charges you originally paid. So a 10 g 22K chain is valued on its 9.16 g of pure gold.
Try it yourself
Open the Gold Jewellery Price Calculator →About the author
The Tiny Web Tools Team
The Tiny Web Tools team builds and maintains the free calculators and converters on this site. We write these guides to explain the formulas behind our tools in plain English, and we review them when rules, rates, or official specifications change.
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