Hi there,
I have a question on calculation of GST for a manufacturing company. Consider below example:
Raw Material cost: 2000
Wages/Labour: 8000
Margin: 2000
Do I calculate GST on a) 2000+8000+2000 OR b) 2000+2000?
Does GST calculation exempt labour wages?
Under GST law taxable value is transaction value i.e.price paid or payable for the supply.so gst shall be paid outward supply of Rs 12000 as per above example
Further services by employee to employer in relation to his employment is outside GST purview.i.e no GST shall be applicale on salary,wages etc paid by employer to employee.
CAclubindia
