Basic info. Cotton based clothes like women Kurtis have two tax rates, that is, 5% for products upto Rs.1000 and 12% after that.
So now, could you guys please tell me what will be the gst rate applicable on the products with MRP between 1050-1120. I'm confused!
Let's assume we have a product with a MRP of Rs.1100. Reverse calculating are giving me conflicting results.
If we tax at 12%. 1100/1.12 gives us us the ex-gst price of Rs.982 which falls under the 5% category but if we tax this product at 5% we will have the MRP of only Rs.1031.
Hoping to have a solution soon!!
TIA and Regards.
CAclubindia
