suppose we manufacture product A
1) Raw material A ₹100 ( applicable GST rate 18%) .. consumption percent 20%
2) raw material B. ₹100 ( tax free )
consumption percent 80%.
Now we sell that product(i.e. product A ) for ₹500 and applicable GST rate 28%.
so my question is whether we have to pay GST @ 28% on whole amount of₹500 or what??
As per sec 15(1) value of supply of goods or services or boyh shall be the transaction value,which is the price actually paid or payable for the said supply of goods where buyer and seller are not related and price is the sole consideration.
In your case GST will be levied on whole amount of Rs 500.
There is no provision in law for valuation on different basis when your input is exempt.
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