How it works
Each invoice line follows the same order: quantity × rate gives the gross amount, the discount is deducted to get the taxable value, and GST is applied on the taxable value. Within a state the tax is split equally into CGST and SGST/UTGST; for inter-state supplies it is IGST.
Formulas
- Gross = Quantity × Rate per unit
- Discount = Gross × Discount % ÷ 100
- Taxable value = Gross − Discount (+ packing, freight and other charges billed)
- GST = Taxable value × GST rate ÷ 100; Line total = Taxable value + GST
Example (illustrative)
A Surat textile wholesaler bills 25 metres at ₹480 per metre with 5% discount, GST at 5%, to a buyer in the same state.
| Gross (25 × ₹480) | ₹12,000.00 |
| Discount @ 5% | − ₹600.00 |
| Taxable value | ₹11,400.00 |
| CGST @ 2.5% + SGST @ 2.5% | ₹285.00 + ₹285.00 |
| Line total | ₹11,970.00 |