how to fix the price and how to show the tax

[Ramaseshaiah M]

Sir,

I purchased with ₹100/- and paid ₹28/- tax and added (transport+rent+profit)=₹30/- and the price is ₹158/-

now ₹158/- is enough to collect from the customer, Either I need to collect 28% on ₹158/- nor I need to collect 28% on ₹30/-

kindly help me to understand

thanking you sir

[Shiv Kumar]

Assuming that you are getting credit of GST paid on your purchases:

then,

your purchase price is = ₹ 100

add your margins and other cost= 30

Total sales price= 130

GST on above sales price= ₹ 36.4

you should take the credit of RS. 28 paid on your purchase and pay the remaining ₹ 8.4 ( 36.4-28 )

if no credit available:

then

your purchase cost will be = ₹ 128 ( including GST)

in that case your sales price will be=Rs. 158 ( including your profits )

then you should charge GST on ₹ 158.

AI Summary

Clarifying GST Calculation: Apply 28% on 130 with credit, or on 158 without credit. Understand GST credits. A user inquired about calculating and displaying tax under the Goods and Services Tax (GST) system. They detailed a scenario involving a purchase for 100 with 28 tax, adding 30 for transport, rent, and profit, resulting in a total of 158. The question was whether to collect 28% GST on 158 or 30. The response explained that if GST credit is available, the sales price should be 130 with a GST of 36.4, using the 28 credit and paying the remaining 8.4. Without credit, the sales price should be 158, including GST.