How the gold price in India is worked out
Gold is priced worldwide in US dollars per troy ounce (31.1035 grams). The rate in India starts from that price and adds the rupee, taxes and the jeweller's charges.
Step by step
- World price → rupees: world price × the US dollar rate.
- Ounce → grams: ÷ 31.1035, then × 10 for the price of 10 grams.
- Import duty: about 15% (since 13 May 2026: 10% basic customs duty + 5% AIDC). The government changes this in budgets, which moves Indian prices overnight.
- GST: 3% on the value of gold and jewellery.
- Purity: 24K is 99.9% gold; 22K is 22/24 = 91.6%; 18K is 75%.
- Making charges (for jewellery): usually 8-25% of the gold value, plus any wastage.
Example
World price $4,000 per ounce, dollar ₹90:
| Step | Amount |
|---|---|
| 4,000 × 90 ÷ 31.1035 × 10 | ₹1,15,743 per 10 g |
| + 15% import duty | ₹1,33,105 (24K, before GST) |
| 22K = × 22/24 | ₹1,22,013 |
| + 3% GST | ₹1,25,673 (22K, 10 g) |
| + 12% making charges on a 10 g chain | about ₹1,40,750 with GST |
Why your jeweller's rate is different
The IBJA (India Bullion and Jewellers Association) publishes the benchmark rate twice a day. Shops add a local premium or discount, city costs and their margin. Our metal rates are estimates from the world price; use the jewellery calculator with your jeweller's rate for the real bill.