Gold bills, explained
What is VA in gold?
VA means value addition. It is the charge for making a piece of gold jewellery, including the gold lost while making it (wastage), written as a percentage of the gold value. "VA 12%" on a bill means 12% of the gold's value is added on top of the gold itself.
How to calculate VA, step by step
An example: a 10 g, 22K chain with 12% VA, at an example 24K rate of ₹10,000 a gram.
- Rate for the karat. 22K is 91.6% pure, so ₹10,000 × 0.916 = ₹9,160 a gram.
- Gold value. Net weight × rate: 10 g × ₹9,160 = ₹91,600.
- VA. Gold value × VA %: ₹91,600 × 12% = ₹10,992.
- Before tax. ₹91,600 + ₹10,992 = ₹1,02,592.
- GST. 3% on the whole: ₹1,02,592 × 1.03 = ₹1,05,670 (rounded).
Type your own rate, weight and VA into the free VA calculator; it does these steps and shows both GST ways.
What VA percentage is normal?
| Type of jewellery | Usual VA |
|---|---|
| Machine-made chains | 5–8% |
| Casting work | 8–12% |
| Handmade necklaces | 12–16% |
| Temple or nakshi work | 20–28% |
| Antique jadau | up to about 35% |
More intricate work loses more metal and takes longer, so it carries a higher VA.
The trap: VA on gross weight
On a stone-set piece, VA should sit on the net weight (the gold alone). Charged on the gross weight, it bills gold wastage on the stones too. A 12 g piece with 2 g of stones at 12% VA: on net weight the VA is ₹10,992; on gross weight it is ₹13,190, about ₹2,198 more for nothing.
VA vs making charges
They are the same money written two ways. South Indian bills tend to use a VA percentage; North Indian bills tend to use a making charge per gram. Some bills charge both. To compare two quotes fairly, turn everything into one number: (VA + making) as a percentage of the gold value. The calculator works this out for you.
Questions people ask
What is VA in gold?
VA stands for value addition. It is the charge for making the piece, including the gold lost while making it (wastage), written as a percentage of the gold value. A bill that says "VA 12%" adds 12% of the gold's value on top of the gold.
Is VA the same as making charges?
It is the same money written differently. VA is a percentage of the metal value, the South Indian way of billing. Making charges are usually a rupee amount per gram, the North Indian way. Some bills charge both. To compare two quotes fairly, add them up as one percentage of the metal value.
How do I calculate VA on gold jewellery?
Multiply the net gold weight by today's rate for that karat to get the gold value, then multiply the gold value by the VA percentage. For 10 g of 22K at an example 24K rate of ₹10,000 a gram, the gold value is ₹91,600 and 12% VA is ₹10,992.
What VA percentage is normal?
Roughly 5–8% for machine-made chains, 8–12% for casting work, 12–16% for handmade necklaces and 20–28% for temple or nakshi work. Antique jadau can honestly reach about 35%, because real metal is lost in the work.
Should VA be charged on gross weight or net weight?
On net weight, the gold alone. VA charged on gross weight on a stone-set piece bills gold wastage on the stones too. Always ask which weight the VA percentage sits on.
Is GST charged on VA?
Yes. On a normal retail bill one 3% GST applies to the whole jewellery value, gold and VA together. When making is billed as a separate service line, that labour part is taxed at 5%.
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