GST is collected, not earned
When you sell at ₹1,499 inclusive of 18% GST, only ₹1,270 is your revenue. The other ₹229 is tax you collect and pass to the government. Counting that ₹229 as margin is the single most common reseller mistake — it makes a break-even product look profitable.
CGST + SGST vs IGST
The GST rate is the same nationwide; only the split changes by destination:
| Supply | Buyer location | 18% splits as |
|---|---|---|
| Intra-state | Same state as you | 9% CGST + 9% SGST |
| Inter-state | Different state | 18% IGST |
Your home state code decides the routing automatically for each order. The total tax collected is identical — a buyer never pays more because of the split.
Input tax credit: why GST on your cost isn't an expense
As a registered reseller you deduct the GST paid on purchases (input credit) from the GST collected on sales, and remit only the difference. So GST on your purchase cost is recovered — which is exactly why margin should be computed on ex-GST amounts on both sides.
Quick rule
Strip GST from both your selling price and your cost, then compare. GST in = GST out (net of credit); it should never appear in your margin.
Inclusive vs exclusive pricing
Marketplaces usually show GST-inclusive prices (MRP), while B2B quotes are often GST-exclusive. Mixing the two is how sellers mis-state margin by 5–28% depending on the slab. Always normalise to ex-GST before comparing.