Sir I get some herbal products from a manufacturer at 18 percent GST for 400 Ra against MRP of 500 Rs
how do I do for GST when selling the Product at 500 Rs.
how GST calculations to be done
pls guide
Replies (3)
Quick Summary
This discussion clarifies how to calculate Goods and Services Tax (GST) for herbal cosmetics. GST is applied to the transaction value, not the Maximum Retail Price (MRP). If you purchase products at 18% GST for £400 and sell them at £500, you'll pay GST on the £500 selling price and claim input tax credit (ITC) on the £400 purchase price. The difference in GST is what you'll pay via GSTR-3B.
GST is levied on the Transaction Value as per the Valuation Provision of Section 15(1) of the CGST Act 2017 and not on the MRP. Maximum Retail Price ( MRP ) includes GST but the Transaction value does not includes GST.