Pricing and taxes

For our supply to you, the place of supply is where the movement of the goods terminates — that is, your delivery address, not your billing address. A buyer registered in one state taking delivery at a site in another is an inter-state supply, and the invoice carries IGST accordingly.

• Delivery in the same state as our registration — CGST + SGST, half the rate each.
• Delivery anywhere else — IGST at the full rate.
• Delivery in a Union Territory — the state half is styled UTGST. The rate and the arithmetic are identical.

Where the tax is split in half, the second half is computed as the total minus the first rather than by taking the half-rate twice. That is not pedantry: rounding a half twice loses a paisa on every odd total, and across a long order it produces an invoice whose heads do not add up to its tax.

Every machine is bought by us in one of two ways, and this is fixed for that machine from the moment we buy it. It cannot be changed afterwards.

• Regular — we bought the machine from a GST-registered supplier who charged us tax, and we claimed that credit. Tax on your invoice is charged on the full value of the supply.
• Margin — the machine was bought under the second-hand goods margin scheme, and no input tax credit was availed on its purchase. Tax on your invoice is charged on our margin only.

The two cannot appear on the same invoice, so a cart holding both is split into separate sub-orders and you receive an invoice for each. This is visible before you pay rather than discovered afterwards, and every machine on the site is labelled with its channel before you add it to a cart.

This is the part that changes what a machine actually costs your business, so it is worth reading before you compare two prices.

On a regular line, tax is charged on the whole taxable value and you may claim that tax as input credit in the ordinary way, subject to your own eligibility.

On a margin line, the taxable value is determined under Rule 32(5) of the CGST Rules, 2017: it is the difference between what we sold the machine for and what we paid for it. That difference is computed for each serial individually and is never pooled across a line or an invoice — the scheme requires the margin to be attributable to a specific unit. Where we sold a machine for less than we paid, that serial contributes a taxable value of zero; it never goes negative and never reduces the tax on another serial.

Because no credit was availed on the purchase, no input tax credit is available to you on a margin line. The tax charged is smaller, and so is the credit — which for a GST-registered buyer usually means a margin machine costs more in net terms than its headline price suggests next to a regular one. Both numbers are on the price breakdown before you add anything to a cart, and the invoice states it on its face:

“Value determined under Rule 32(5) of the CGST Rules, 2017. No input tax credit availed on purchase.”

• One invoice per sub-order, issued by us. Every serial on it is listed individually.
• Invoice numbers are allocated in a gapless per-series sequence scoped to the financial year.
• Freight is part of the taxable value rather than a tax-free addition.
• We do not currently generate an Invoice Reference Number or the associated QR code. When e-invoicing is switched on, invoices will carry both.

Where tax is deductible at source on payments we make to a supplier, it is deducted at the applicable rate once that supplier’s payments cross the statutory threshold for the financial year, and at the higher rate where we do not hold a valid PAN. The deduction and the threshold are shown on the supplier’s own payables screen against each payment, rather than appearing as a difference at the end of the year.