This guide will help you in calculating billing value for raising invoices at the time of sending goods to eshopbox warehouse.  


Billing value is calculated using below parameters :

  • MRP of product

  • GST rate for products

  • Billing margin - this is assumed as 50% for sake of simplification and reducing the tax liability on Brand arising at the time of sending goods to eshopbox warehouse 


Step by step process to calculate billing value is :

  • Determine net sale value of products by reverse calculating tax on the product MRP. 

  • Calculate billing margin as 50% of MRP

  • Billing price (excluding tax) = Net Sale Value - Billing margin amount 

  • Add tax on unit price excluding tax to determine billing value including tax


Following table illustrates the method for billing value calculation for various categories :


  • Apparels :

Apparels


Case1

Case 2

Case 3



Description

Value

Description

Value

Description

Value

MRP

A


1,000.0


1,200.0


2,675.0

GST


5.00%

47.6

12.00%

128.6

12.00%

286.6

Net sale value (excluding tax)

B


952.4


1,071.4


2,388.4

Billing Margin

C = 50%*A

50%

500.0

50%

600.0

50%

1,337.5

Unit Price excluding tax

D = B - C

45.24%

452.4

39.29%

471.4

39.29%

1,050.9

GST*

E

5%

21.5

5%

22.4

12%

112.6

Unit price (including tax)

F = D + E

47.39%

473.9

41.16%

493.9

43.49%

1,163.5



  • Footwear :


Footwear


MRP < 500

MRP > 500



Description

Value

Description

Value

MRP

A


450.0


1,000.0

GST


5.00%

21.4

12.00%

107.1

Net sale value (excluding tax)

B


428.6


892.9

Billing Margin

C = 50%*A

50%

225.0

50%

500.0

Unit Price excluding tax

D = B - C

45.24%

203.6

39.29%

392.9

GST*

E

5%

9.7

12%

42.1

Unit price (including tax)

F = D + E

47.39%

213.3

43.49%

434.9


  • Other categories : Bags, Artificial Jewellery


Other


Artificial Jewellery

Bags, wallets



Description

Value

Description

Value

MRP

A


450.0


1,000.0

GST


5.00%

21.4

12.00%

107.1

Net sale value (excluding tax)

B


428.6


892.9

Billing Margin

C = 50%*A

50%

225.0

50%

500.0

Unit Price excluding tax

D = B - C


203.6


392.9

GST*

E

5%

9.7

12%

42.1

Unit price (including tax)

F = D + E


213.3


434.9



We will reiterate the billing value calculated doesn’t relate with amount payable by brand when the products are sold (settlement value). Settlement value depends on discount at which the products are sold, sales tax, channel fees and eshopbox fees.