Tobacco Items – GST 40% on MRP (GST 2.0 Compliance)

Compliance Update – GST 2.0 (Tobacco @ 40% on MRP)  

As per the latest GST 2.0 regulatory amendment, tobacco products must attract 40% GST on MRP, replacing the earlier taxable value–based computation.

This statutory enhancement has been incorporated in:

• RPOS 6 – Version 6.5.9.2 SP-91
  

• RPOS7 – RC429

Steps to Be Followed for RPOS6 (v6.5.9.2 SP-91)  

1. Patch Version Validation  

Before proceeding with configuration changes, confirm that the customer system is upgraded to:

RPOS Version: 6.5.9.2 SP-91

The statutory enhancement for Tobacco – 40% GST on MRP (MRP-based calculation) is available only from this patch onwards.

Validation Steps:  

• Open RPOS6 Server/Client.

• Navigate to Help → About (or System Information).

• Verify the displayed version is 6.5.9.2 SP-91.

• If not updated, schedule patch deployment before enabling GST 2.0 settings.

2. Enable Global Configuration  

Once the patch version is validated:  

• Navigate to RPOS6 Server/Client → Global Configuration.

• Search for the setting “Calculate Inclusive Tax on MRP”

• Enable (Tick) the configuration.

• Save the changes.

• Restart the application (recommended to ensure config reflection).

3. Item Master Configuration – Tobacco (GST 2.0 Compliance)  

After validating patch version and enabling “Calculate Inclusive Tax on MRP”, configure the Item Master for all applicable tobacco products as outlined below.

• Navigate to Server/Client → Inventory → Item Master.

• Search and open each applicable tobacco item.

• Click F4 or Change button.

• Under GST Details tab, set GST Tax % → 40%.

• Ensure the correct GST structure (CGST/SGST or IGST) is mapped as per branch registration.

Important: Remove any previously assigned value-based tax template.

• Under Purchase Settings, set GST Calculation Based On → MRP & Purchase Abatement → 100%.

This ensures purchase-side GST is computed correctly based on MRP.

• Under Sales Settings, set GST Calculation Based On → MRP & Sales Abatement → 100%.

This ensures sales-side GST is calculated as 40% on MRP (as per GST 2.0 regulation).

• Click the Save button.

• Repeat the same configuration for all tobacco SKUs.

4. Transaction Validation – Tobacco (GST 2.0 | 40% on MRP)  

After completing:

• ✔ Patch Upgrade to 6.5.9.2 SP-91

• ✔ Enabling “Calculate Inclusive Tax on MRP”

• ✔ Item Master configuration (40% GST | MRP-based | 100% Abatement)

Proceed with transaction-level validation as follows:

1. Purchase Entry Validation  

• Create a Purchase Bill using the existing purchase formula.

• Load tobacco items as usual.

• Enter MRP correctly.

2. Sales Billing Validation  

• Create a retail bill with a tobacco item.

• Verify:

• GST = 40% of MRP

• Correct CGST/SGST or IGST split

• No deviation due to discounts or price overrides

Steps to Be Followed for RPOS7 (RC429)  

1. Patch Version Validation  

Before proceeding with configuration changes, confirm that the customer system is upgraded to:

RPOS Version: RC429

The statutory enhancement for Tobacco – 40% GST on MRP (MRP-based calculation) is available only from this patch onwards.

Validation Steps:  

• Open RPOS7 Server/Client.

• Navigate to Help → About Gofrugal RetailEasy.

• Verify the displayed version is RC429.

• If not updated, schedule patch deployment before enabling GST 2.0 settings.

2. Item Master Configuration – Tobacco (GST 2.0 Compliance)  

For new tobacco SKUs, configure the Item Master strictly as per GST 2.0 statutory requirement (40% on MRP – Inclusive).

• Navigate to Inventory > Masters > Items.

• Create the required Cigarette or Tobacco items in the Item Master.

• Set the GST Tax % to GST 40% for the applicable item.

• Set the Tax Part of MRP [Inclusive] option to Yes.

3. Purchase Entry:

• Open the purchase entry screen and load the Cigarette items.

Notice, the GST amount is 57.14 which is the 40% of the MRP 200.

• Save the transaction.

Note: Check the GST calculation for your reference.

4. Sales Entry:

• Open the sales bill screen and load the Cigarette items.

• Notice, the GST amount is 57.14 which is the 40% of the MRP 200.

Summary – Tobacco Items GST 40% on MRP (GST 2.0 Compliance)  

As per the GST 2.0 regulatory amendment, tobacco products must be taxed at 40% GST calculated on MRP, replacing the earlier taxable value–based calculation.

System support for this statutory requirement is available in:

• RPOS6 – Version 6.5.9.2 SP-91

• RPOS7 – RC429

RPOS6 – Key Implementation Summary  

1. Patch Validation

• Ensure system is upgraded to 6.5.9.2 SP-91.

• Enhancement is available only from this version onwards.

2. Global Configuration

• Enable “Calculate Inclusive Tax on MRP”

• Restart application after enabling.

3. Item Master Configuration

• GST Tax % → 40%

• Remove any value-based tax template.

• GST Calculation Based On → MRP

• Purchase Abatement → 100%

• Sales Abatement → 100%

• Ensure correct GST structure mapping (CGST/SGST or IGST).

4. Transaction Validation

• Purchase and Sales entries can be performed using existing formulas.

• GST automatically calculates as 40% of MRP.

• Example: For MRP ₹200 → GST = ₹57.14 (40% on MRP – inclusive calculation).

RPOS7 – Key Implementation Summary  

1. Patch Validation

• Ensure system is upgraded to RC429.

• Validate via Help → About Gofrugal RetailEasy.

2. Item Master Configuration

• Create Cigarette/Tobacco items.

• GST Tax % → 40%

• Tax Part of MRP [Inclusive] → Yes

3. Transaction Validation

• During Purchase and Sales entries:

• GST auto-calculates based on MRP.

• Example: MRP ₹200 → GST ₹57.14.

• Save and verify GST breakup.

Overall Outcome  

• GST is computed strictly as 40% on MRP.

• No manual intervention or formula changes required.

• Purchase and sales workflows remain unchanged.

• Accurate GST reporting and statutory compliance ensured under GST 2.0.

This completes the end-to-end implementation and validation process for Tobacco GST compliance in RPOS6 and RPOS7.