TaxTMI 
TaxTMI 
Say, I bought an item from a whole seller at 5% GST. Total value was Rs. 105. So my input tax credit is Rs. 5. So if I sell the item for Rs. 190, then do I calculate the GST on 190 - 105 = 85 or on total sales values of Rs. 190? My GST rate is also 5%.
GST on Profit or Total Sales Value?
04 Mar 2023 
7 Replies 
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GST on Sales Value: output tax is charged on full selling price with input tax credit offsetting net liability.
GST is charged on the full selling price shown in the invoice; if price is tax-inclusive the tax component is apportioned per invoicing rules. Output tax shown on sales is reduced by allowable input tax credit for purchases, so the net cash tax equals output tax minus input tax credit, effectively taxing the value addition. (AI Summary)
GST is charged on the full selling price shown in the invoice; if price is tax-inclusive the tax component is apportioned per invoicing rules. Output tax shown on sales is reduced by allowable input tax credit for purchases, so the net cash tax equals output tax minus input tax credit, effectively taxing the value addition. (AI Summary)