How to calculate correct gst

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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?

Replies (2)
gst is on amount charged from recipient..it will be on 12,000 in your question

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.


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