Buying gold jewellery in India - a tourist's guide

India is the world's second-largest consumer of gold (after China) and one of its most established jewellery-making cultures. Gold here is woven into weddings, festivals and family savings — Diwali and Akshaya Tritiya in April-May are the two biggest gold-buying days of the year. For visitors that means a deep market with skilled craftsmen, but also one where the rules and the pricing model are different from most western countries. This page walks through what you need to know.

How Indian gold pricing works

The price you pay for a gold ornament in India is built up from four pieces:

Gold value = (current gold rate) × (weight in grams) × (purity / 24).
- 22K gold is 916/1000 pure (so 22÷24 ≈ 0.916).
- 18K gold is 750/1000 pure.
- The gold rate is updated daily by the Bureau of Indian Standards and the India Bullion and Jewellers Association; reputable shops display the day's rate at the counter.
Making charges — the labour cost for designing and manufacturing the piece. Typically 8% to 25% of the gold value, depending on complexity. Plain bangles are at the low end; intricate kundan, polki, antique-finish or temple jewellery are at the top.
Stones / wastage / impurities — for pieces with diamonds, polkis or precious stones, the stone value is calculated separately. For some traditional pieces a small "wastage" charge is added; this is negotiable at most chain stores.
Taxes — currently 3% GST on gold and 5% GST on making charges (verify on your bill — these rates can change in the central budget).

A typical bill therefore looks like:

Gold value (22K, 12.5 g)        ......  ₹A
Making charges (12% of A)       ......  ₹B
Stones                          ......  ₹C
GST (3% on A+C, 5% on B)        ......  ₹D
Total                                   ₹A+B+C+D

Always ask for the rate breakdown before you commit. Reputable jewellers will print all of these line items on the bill.

BIS hallmarking — the most important rule

BIS hallmarking of gold jewellery became mandatory in India on 16 June 2021 and is now enforced across most districts. From April 2023 only 14K, 18K, 20K, 22K, 23K and 24K purities can legally be sold, and every hallmarked piece must carry a six-digit alphanumeric HUID (Hallmark Unique Identification) code registered in the Bureau of Indian Standards database.

Insist on a hallmarked piece for any serious purchase. It is illegal for a jeweller to sell unhallmarked gold jewellery.

The three marks to look for

Under the current BIS scheme each hallmarked piece carries three marks (usually on the back or inside surface — small, so ask for a magnifying glass):

BIS logo — a triangle-inside-a-circle standards mark.
Purity / caratage in three digits:
- 999 = 24K (pure gold; too soft for most jewellery)
- 958 = 23K
- 916 = 22K (the most common Indian jewellery gold)
- 875 = 21K (older pieces only)
- 833 = 20K
- 750 = 18K (most diamond jewellery)
- 585 = 14K
Six-digit alphanumeric HUID — unique to that piece.

You can verify any HUID online at the BIS verification portal: https://www.bis.gov.in/.

The older four-mark system (BIS logo + purity + jeweller's mark + assay-centre logo + a letter year code) was phased out in April 2023. Older pieces sold before that may still carry the four-mark system legitimately; anything bought new today should carry a HUID.

What carat to buy

Most Indian gold jewellery is 22K (916). It is the traditional standard for ornaments — high enough purity to keep its rich yellow colour but with enough alloy to be worked into intricate forms. 24K (999) is too soft for jewellery and is usually sold as bullion (coins or bars).

For diamond-set pieces — particularly modern designs — 18K (750) is the global standard, because the higher alloy content holds stones more securely.

If you are buying for everyday wear and bringing it home, ask whether there is 18K in the design you like; it is more durable in daily use than 22K.

Where to shop

The Indian jewellery market has three layers:

National chains (most reliable for visitors)

These shops have fixed prices, transparent making charges, lifetime exchange and buyback policies, BIS hallmarks, and proper invoices. Stores in every major Indian city.

Tanishq (Tata Group) — the most-visited reputable chain; clean retail experience, full transparency on pricing.
Kalyan Jewellers
Malabar Gold & Diamonds
Joyalukkas
PC Jeweller
Reliance Jewels

Strong regional names

GRT Jewellers, Bhima Jewellery — well established in south India.
Tribhovandas Bhimji Zaveri (TBZ) — long-standing Mumbai house.
Mehta Jewellery, Manepally — Hyderabad.
Bhima and Alukkas — Kerala.
Khazana — Chennai.

Traditional family bazaars

The classic gold districts — Zaveri Bazaar in Mumbai, Johari Bazaar in Jaipur, Charminar in Hyderabad, T. Nagar in Chennai, Chandni Chowk in Delhi — are where most Indian gold actually changes hands. Family-run shops in these areas can have outstanding craftsmanship, sometimes at lower making charges than the chains, but the experience is more bargaining-driven and the chain-store guarantees (lifetime buyback, exchange) usually do not apply.

For your first piece in India, the chains are simpler. If you want a custom piece or a regional speciality, a recommended family jeweller in the right bazaar can be a wonderful experience — but go with a reference, not blind.

Avoiding common pitfalls

Hallmark first. No hallmark, no HUID, no purchase. Don't be persuaded by talk of "studio gold" or "designer gold" without the BIS marks.
Watch the making charges. The same piece in two shops can vary by 10–15% on making charges alone. The chain stores often have running offers (festival season, anniversary sale) that bring making charges down significantly.
Verify the weight at the gold scale, in front of you. Most chain stores display the weight on a counter scale. Stones and beads are usually weighed separately and priced separately — make sure your bill reflects this.
Don't pay the full gold rate on stones, beads or pearls. They are not gold, and should not be priced at the gold rate.
Driver and guide commissions — drivers, guides, hotel concierges and tour operators routinely steer foreign visitors to specific shops where they earn 20–40% on top of your purchase. Pick your shop yourself; if you must use a recommendation, ask a hotel front-desk manager (not a driver).
"Special tourist tax" or "tourist exemption price" — there is no such thing. Some shops use this line on first-time visitors. The published gold rate plus making charges plus GST is the price for everyone.
Don't pay cash for large purchases. Pay by credit card or by bank transfer; you have a paper trail and a chargeback option if something goes wrong. Indian-issued credit cards have a daily limit; foreign cards often need pre-clearance from your home bank for large transactions.
Always get a printed tax invoice (GST bill). It is essential for customs declarations going home, for any insurance claim, and for resale.
Compare across at least two shops before you commit. Even at the chain stores, prices vary day-to-day with the gold rate.

Customs — taking gold home

Different countries have different limits, but a few points apply almost everywhere:

Always carry a printed tax invoice with the gold weight, purity, HUID and seller's GSTIN.
Indian customs limits for residents returning to India allow a small duty-free quantity that depends on the length of stay abroad and whether the importer is male or female. Check the latest at https://www.cbic.gov.in/ before you travel — these are revised periodically.
For Indian residents taking gold to other countries (and for foreign tourists buying gold and taking it home), most destinations allow gold for personal use up to a value below their customs declaration threshold; large purchases need to be declared and may attract duty in the destination country.
Insure expensive purchases for the journey home. A simple travel-insurance rider covers most pieces.

Customising and ordering

Most chain stores will order or modify a piece — for example, resizing a ring, replacing a clasp on a necklace, or adjusting a chain length — usually without charge or for a small fee. For a fully custom design, traditional family jewellers in places like Jaipur (kundan, meenakari) or Hyderabad (basra pearl, polki) are the right address; allow at least 4–6 weeks for the work, and pay in instalments tied to milestones (design approval, cast wax, stone setting, finishing).

When to buy

Akshaya Tritiya (April–May) and Diwali / Dhanteras (October–November) are the big gold-buying days; chains run special making-charge waivers and discounts in the week running up to these dates.
Avoid the day after major price spikes — gold rates respond to international markets and rupee-dollar swings; if you have flexibility, buy on a day when the rate is steady.
Wedding-buying season (October–February) sees the biggest inventory and the most varied designs in stores.

Other gold-related shopping

Gold coins and bullion — sold at chain jewellers, banks (with restrictions for foreign visitors) and dedicated bullion dealers. The same hallmarking rules apply; coins are typically 24K and have lower making charges.
Sovereign Gold Bonds (SGB) — a government investment scheme, not for tourists but worth knowing about. They are linked to the gold price without storing the metal.
Digital gold — apps like PhonePe, Google Pay, Tanishq Digital Gold sell tokenised gold backed by physical reserves. Convenient for residents; not normally relevant to short-term visitors.