Two shops on the same street quote the same chain at different prices, and the customer cannot tell why. Nine times out of ten the difference is in how wastage and making are quoted — not in the gold. Being clear about the two is one of the cheapest ways to win a customer's trust.
Wastage, or value addition (VA)
Wastage covers metal lost in making the piece — filings, melting loss, polishing. It is charged as a percentage of the metal value, or sometimes as grams added to the weight. Intricate work such as antique, temple or nakshi pieces carries more wastage than a plain machine-made chain. In Tamil Nadu it is usually called சேதாரம்.
Making charge
Making pays for the labour and design. Shops quote it in one of three ways:
| Method | Example | Suits |
|---|---|---|
| Per gram | ₹350 per gram | Chains, bangles, everyday pieces |
| Percentage of metal value | 8% of gold value | Designs where labour scales with value |
| Flat per piece | ₹1,500 per pair | Small pieces, studs, kids' jewellery |
Why keep them apart
- The customer can compare quotes like for like, instead of guessing what a single 'all-in 18%' hides.
- You can change making on a design without touching the wastage that reflects real metal loss.
- Your margin reports show what you earn on labour versus what you recover on metal.
How it adds up
Take a 10 g 22K chain at a board rate of ₹7,000 a gram, 12% VA and ₹300 a gram making:
| Line | Working | Amount |
|---|---|---|
| Gold value | 10 g × ₹7,000 | ₹70,000 |
| Wastage (VA) | 12% of ₹70,000 | ₹8,400 |
| Making | 10 g × ₹300 | ₹3,000 |
| Taxable value | ₹81,400 | |
| GST | 3% of ₹81,400 | ₹2,442 |
| Bill amount | ₹83,842 |
Our free gold rate and making charge calculator does this working for gold and silver, with stones and an old gold exchange.
How Auromine handles it
In Auromine MPOS Jewelry Software, VA (as % or grams) and making (per gram, % or per piece) are set on each tagged item and can be changed on the bill. The bill prints each line, so the customer sees exactly how the price was built. Pearl is free forever for one counter — 30 bills a month and 200 items, no tag printing; paid plans start at ₹2,999 a year.
Checked November 2026. Figures are an example; rates and charges vary by shop and design.