Here is basic calculation, I think everyone should know about it. I will take just two things for that, MRP and GST, and many examples to understand that.
- MRP 100; GST 18% ; Price before GST = (100*100)/118 = 84.75; [GST = 15.25]
- MRP 200; GST 18% ; Price before GST = (200*100)/118 = 169.5; [GST = 30.5]
- MRP 500; GST 18% ; Price before GST = (500*100)/118 = 423.73; [GST = 76.27]
- MRP 2000; GST 18% ; Price before GST = (2000*100)/118 = 1694.92; [GST = 305.08]
- MRP 10,000; GST 18% ; Price before GST = (10,000*100)/118 = 8,474.58; [GST = 1,525.42]
Knowing different percentage of GST (for different categories) you can yourself find-out Price before GST. And remember that, MRP is GST inclusive (you needn’t to give additional price after MRP).
So this time whenever you buy any product from Amazon, Flipkart, Snapdeal or TataCliq; try to look into the bill, and cross check their calculation.
I’ve seen people charging GST on “late fee fine,” “shipping charges” and so on — so in this case make sure, where GST is applicable and where it is not.
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