# How to Calculate Net Rates?

Query:

I am Anoop Rawat calculating as per your formula. PTR and PTS example given below:
Product MRP 60/- Rs GST 18% Slab,
GST 60*100/100+18=6000/118=50.84
PTR 50.84*100/100+20=5084/120=42.36 GST 18%=7.63
PTS 42.36*100/100+10=4236/110=38.50
This is PTS. Our Question is How to Calculate Net Rate because GST include Net Rate. I Know the net rate. Some body provide me. So help me How to calculate Net rates?

Response:

Calculating MRP, PTR and PTS you can check at our article: How to calculate MRP, PTS and PTR?

Net rates are calculated based upon the cost and profit margin at the product. Net rates calculation doesn’t depend at MRP of product but MRP calculation depend at Net rates.

Net Rates are calculated as per formula: Cost x %margin + %GST (If net rates are inclusive of GST).
If you are marketing company, Cost is calculated on the basis of Formula:
Cost= Third Party Rate + Transportation + Other Expenses + % Profit Margin

If you are manufacturer the Cost is calculated on the basis of Formula:
Cost = Manufacturing cost + Packing Material Cost + Taxes + Transportation + Promotion Material + Expenses.

After fixing the Net rates, you can fix MRP accordingly but after Fixing MRP, it’s very difficult to fix Net rates.