Buying gold in Kerala: pavan, karat and making charges
How jewellery price is built up, what 22K and 24K mean, and what to check on a bill.
Gold jewellery looks complicated on a bill, but the price is built from a few parts you can check yourself.
Units of weight
Jewellers in Kerala often talk in pavan. One pavan is 8 grams. Elsewhere you will hear tola (about 11.66 grams) and ounce (about 31.1 grams). The shop’s bill is normally in grams.
What karat means
24 karat is pure gold. 22 karat is 22 parts gold out of 24, about 91.6 percent, with other metals added for strength. Jewellery is usually 22K, sometimes 18K. The same weight of 22K therefore costs less than 24K.
How the price is built up
- Gold value: weight × that day’s rate per gram for the karat.
- Making charge: a percentage of the gold value or a fixed amount per gram. Intricate designs usually cost more.
- Tax: GST in India or VAT where applicable, on the total.
- Other items: stones, hallmarking fees.
Worked example
For an 8-gram (one pavan) piece with the day’s rate at 6,000 per gram, gold value is 48,000. A 12 percent making charge adds 5,760, giving 53,760 before tax. A 3 percent tax on that is 1,612.80, so about 55,373 in total. Rates vary every day, so use the current figure from your jeweller.
What to check before paying
- Hallmark: look for the BIS hallmark on gold sold in India.
- Rate: ask for the rate of the day in writing.
- Making charge basis: percentage or per gram, and whether it applies to old gold exchanged.
- Buy-back terms: what deduction applies if you sell later.
Our gold price calculator lets you enter the weight, karat, rate and making charge to compare quotes. If you are carrying gold between countries, check customs rules for both airports first.