How to calculate GST?
Suppose the manufacturing cost for a product is INR 100. Let’s assume the GST is 20%. Thus the price at now is INR 120. Now he decides to sell the product at INR 160. There is a difference of INR 40. GST will now be applicable on the difference amount i.e. INR 40. GST will thus be 20% of INR 40 i.e. INR 8. So the final price of the product is INR 168.
INR 100 + 20% of INR 100 (20) + profit (40) + 20% of profit amount (8) = INR 168
INR 100 + 20% of INR 100 (20) + profit (40) + 20% of profit amount (8) = INR 168
