Rule for Calculating Tax Amount on Supplies Including GST: Use Tax Rate Formula for Accurate Computation.
The rule outlines the method for determining the tax amount when the value of a supply includes integrated tax, central tax, State tax, or Union territory tax under GST regulations. The tax amount is calculated by multiplying the value inclusive of taxes by the applicable tax rate percentage of IGST, CGST, SGST, or UTGST, divided by 100 plus the sum of applicable tax rates in percentage. This formula ensures accurate tax computation when taxes are already included in the supply value.
Full Summary is availble for active users!
Note: It is a system-generated summary and is for quick
reference only.