How GST inside an MRP is worked out
MRP already includes GST. The taxable value is the MRP divided by (1 + rate), and the rest is the tax. Within a state, half is CGST and half is SGST.
- ₹105 at 5%: taxable ₹100, GST ₹5
- CGST ₹2.50 and SGST ₹2.50
- Another state: IGST ₹5