We sell a product as follow:
Item Retail Price: Rs. 7900 included 17% GST amounting to Rs.1147
Net of Tax Price to consumer: Rs. 6753 which includes our margin of Rs. 1687
But on purchase side the manufacture collects the whole amount of Tax (Rs. 1147) in his purchase
Consumer Price: Rs. 6753
Less Margin: Rs. 1687
Net Payable to Manufacturer: Rs. 5066
Plus GST 17% Included in Consumer Price: 1147
Total Payable to Manufacturer: Rs. 6213
How do I setup the tax template for such a case? As our GST payable is nill because whatever we collect from the customer has already been paid to manufacturer.
The manufacturer doesn’t charge us 17% on the Net Total, he charges us 17% Tax included in the end retail price.