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

Input tax credit determines GST to remit: credit reduces GST on sale, otherwise GST charged on gross selling price. If input tax credit is available, add margins and other costs to the purchase price exclusive of previously paid GST to determine the taxable sales value, compute GST on that sales value, then offset the input credit and remit the balance. If no input credit is available, the GST paid on procurement is part of cost; set the selling price inclusive of that tax and charge GST on the full invoice value.