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Gst sales value

Arul Murugan (Head Finance and Accounts) (29 Points)

05 June 2017

hi for ready made garments rate is 12% if sale value above 1000, pls clarify sale value is before tax or include tax , or MRP

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5 Replies

Shubham Gupta (Business Consultants) (2077 Points)
Replied 05 June 2017

it will be the value before tax

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Subodh Sharma (Tax Consultant) (41 Points)
Replied 06 June 2017

In this case, the textile items above the price threshold of Rs. 1000 (per item) then it will be taxed at 12 percent. Say sale price is Rs. 1200 then 12 percent gst will be applicable on the Rs. 1200. Final Price= 1200+144(gst).

Arul Murugan (Head Finance and Accounts) (29 Points)
Replied 06 June 2017

mrp is 1200 but I am selling at rs 800 before tax what will be the tax rate 12% or 5% because as per the tax rate if sale value is below 1000 tax rate is 5% but it is not defined what is sale value

Subodh Sharma (Tax Consultant) (41 Points)
Replied 07 June 2017

5% tax rate will be applicable.

Evu (Analyst) (39 Points)
Replied 21 November 2017

Please explain what is the meaning of Sale Value. The price is derived out of various expenses and profit. So does the sale value include the expense component also? Does this mean we are calculating tax on top of the expense+profit amount?