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.

• 24K — 99.9% pure (hallmark 999). Very soft, used for coins and bars rather than everyday jewellery.
• 22K — 91.6% pure (916). The standard for traditional Indian gold jewellery.
• 18K — 75% pure (750). Popular for diamond and Western jewellery; more durable.
• 14K — 58.5% pure (585). Even harder, 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.