How to fix the retail price in CSD Unit Run (CSD) Canteen?
Computation of Retail Rate
Upon implementation of GST, the prices of general stores were reworked out by removing Freight Inward and Insurance which were earlier charged to customers. This has led to a reduction in the prices of all the items by 1.10%.
Pricing of General Stores. The pricing in GST regime is to be done as
under, assuming Procurement Rate per case of Rs 4,574.10, Case Pack of 6, GST @ 12%, Compensation Cess –NIL, CSD/ URC profit at 6/5%:
Price Fixation Table in CSD Canteen
- Procurement Rate: Rs. 4574.10
- Additional cost of GST (50% of GST Rate) 12%: R.s 274.45
- CSD Profit (On Landed Cost) 6%: Rs. 274.45
- Wholesale Cost Per Case (Rounded): Rs. 5123.00
- Wholesale Rate Per Unit: Rs. 853.83
- Unit Price for URC Profit Case Pack: Rs. 808.09
- URC Profit 5%: Rs. 40.40
- Retail Rate Per Unit: Rs. 894.25
How to Fix AFD Price in CSD Canteen?
Implementation of GST has led to uniformity in rates of not only general
goods. 50% GST is exempted and the remaining GST is added to the wholesale price of the item for URCs. The sale from URC to the customer is totally exempt from GST.
The pricing of AFD goods is to be done as under assuming Basic Price of Motor Car as Rs 6,00,000, Compensation Cess @ 3%, discount offered on Trade as Rs 1,000 and seasonal discount as Rs 2,000:
- Basic Price: Rs. 6,00,000
- The disc on Trade (As per AFD)circular: Rs. 1,000
- Special/ Seasonal Disc offered by Company/Dealer: Rs. 2,000
- Total Discount: Rs. 3,000
- Taxable Value: Rs. 5,97,000
- CSD Incidental Charges (on Taxable Value 0.5%: Rs. 2,985
- The additional cost of GST (50% of GST Rate on Taxable Value ) 14%: Rs. 83,580
- Additional cost of Compensation Cess (3% on Taxable Value) 3%: Rs. 17,910
- Selling Price to Customer: Rs. 7,01,475