GST is a simple process where the rates have to be referred as specified in the Goods and Services Act and on the basic rate charged, GST will be applicable.  However, discount can be deducted from the price and then the chargeable basic will have GST audit. At present, GST percentages are 0%, 0.25%, 3%, 5%, 12%, 18% and 28%.

Let us illustrate the calculation of GST using the following examples

1. Scenario 1A: INTRASTATE SALE

Let us assume the GST on a product is at 12% and the quantity is 10 numbers @ Rs. 100.  Supplier is from Bangalore supplying the product to a buyer within Karnataka.  GST calculation will be as below:

Cost of the product:  Rs. 100 x 10 = Rs.1000

·        Add SGST 6%  Rs. 60

·        Add CGST 6% Rs. 60

Total Rs. 1000+120 = Rs. 1120

Scenario 1B: INTRASTATE SALE WITH DISCOUNT

With a discount in the same above intrastate sale

Cost of the product:  Rs. 100 x 10 = 1000

Less discount 10% – Rs. 100

Cost:  Rs. 900

·        Add SGST 6%  Rs. 54

·        Add CGST 6% Rs. 54

Total Rs. 900 +108 = Rs. 1008

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2. Scenario 2A –INTERSTATE SALE

Here, it is an interstate sale that is it is assumed the seller is from Bangalore and buyer from Chennai.  Cost of the product Rs. 100 and number of products 10.

Calculation will be as below:

 Cost of the product:  Rs. 100 x 10 = Rs. 1000

·        Add IGST 12%  Rs. 120

Total Rs. 1000+120 = 1120

Scenario 2B- INTERSTATE SALE WITH DISCOUNT

With a discount in the same above interstate sale

Computation will be as below:

Cost of the product:  Rs. 100 x 10 = Rs. 1000

Less discount 10% – Rs. 100

Cost of the product:  Rs. 900

·        Add IGST 12% – Rs. 108

Total:  Rs. 1000 + 108 = Rs. 1008

Still facing issues to calculate GST Return in India? Contact us today at Total Solutions and get your problems resolved with the help of our experts.

FOR ANY SPECIFIC QUERIES, CLICK HERE TO FIX A 30 MINUTES FREE SESSION ON ZOOM FOR ONE-TO-ONE WITH AN EXPERT. (NAME OF THE PERSON, MOBILE NUMBER, EMAIL ID, WEBSITE (NOT MANDATORY), COMPANY (NOT MANDATORY)

TIMING WILL BE 11 a.m. to 6 pm (Mention your preferred time) Slot availability to be confirmed.