The wholesaler also adds his profit of 20 rupees, and the Cost of the product is now 150 rupees. As the distributor already paid the tax of 13 rupees and it should be subtracted from the wholesaler tax of 10%, which is 15 rupees. Now the fee that should be paid by the distributor is 2 rupees, and the Cost of the goods is now 163 rupees.
Likewise, the retailer gets the product from the wholesaler for 150 rupees and adds his profit of 20 rupees, and the Cost before the GST is 170 rupees. As the wholesaler already paid the tax of 15 rupees, and it should be subtracted from the retailer 10% tax, which is 17 rupees. Now the fee that should be paid by the distributor is 2 rupees, and the final price of the product becomes 170 rupees. Now let me tell you about GST Slabs.
Like Income tax, we, too, have the slabs in GST. It was divided into five categories. In 0%, we have unpacked food grains, 5 % widely used items like oils, packed grains, etc. 12 % to 18 % ordinary items like medicines, computers, fertilizers, services, etc. 28 % luxury items like cars, cosmetics, etc. That’s it about the GST.