Discount and Sale Price Calculator: real discount, GST and margin
See what the buyer pays, the real discount on MRP, the GST inside the price and your margin after an offer.
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How it works
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Enter the MRP, the cost of one unit, the GST rate and any other costs per order. Press Try an example to see a sample.
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Pick the offer and its size, then fill in what buyers see: the % off on your banner, any checkout fees and any countdown.
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Read the price, discount and margin, fix what the checks flag, and use the ladder or "Price for a % off" to pick a price you can stand behind.
About the Discount and Sale Price Calculator
Enter the MRP, what one unit costs you, the GST rate and your offer: a percentage off, an amount off, a sale price with a coupon on top, or buy X get Y. You get what the buyer pays, the real discount on the MRP, the GST inside the price and the taxable value, your profit, margin and markup after the offer, the price to set for a round "% off", and a ladder from 5% to 50% off. Honest pricing checks look at a price above the MRP, discount and "free" claims, countdowns, fees added at the last step and GST on the discount. It runs in your browser: nothing is uploaded and no seller account is connected.
The real discount and the GST inside the price
The real discount is what the buyer saves against the MRP after every part of the offer, so a sale price of ₹799 with a ₹50 coupon on a ₹999 MRP is 25.03% off, not the 20% on the price tag. GST sits inside a price that includes it: price × rate ÷ (100 + rate). Under section 15(3)(a) of the CGST Act, a discount given before or at the time of supply and recorded in the invoice is not part of the taxable value, so GST is on the price after the discount. CBIC Circular 92/11/2019-GST treats buy one get one free as items sold together for one price, not a free supply.
The pricing rules the checks use
Rule 18(2) of the Legal Metrology (Packaged Commodities) Rules, 2011 says no one may sell a pre-packed product above its retail sale price, which is declared as "MRP ₹… inclusive of all taxes". The CCPA's 2022 guidelines on misleading advertisements say something is not free if the buyer pays packing or handling charges for it, or if the price of what they must buy was raised for the offer. Its 2023 guidelines on dark patterns list false urgency and drip pricing, where parts of the price appear only at the end.
What this tool cannot do
It does not know marketplace fees, so it does not work out your payout: use the Marketplace Fee and Profit Calculator for that, and the Offer Profit Calculator for how many more sales an offer needs. The checks work on what you type and tick; they cannot see your page. Comparing your claim with the price is our check. It is not legal or tax advice: check GST on offers and your labels with your CA or lawyer.
Frequently asked questions
How do I work out the discount percentage from the MRP?
Take what the buyer pays from the MRP, divide by the MRP and multiply by 100. A gift box with an MRP of ₹999 sold for ₹749 is (999 − 749) ÷ 999 × 100 = 25.03% off. For buy X get Y, use the MRP of every item the buyer takes home.
How do I find the price for a round discount like 30% off?
Multiply the MRP by (100 − 30) ÷ 100. For an MRP of ₹999 that is ₹699.30. Round down to ₹699 so the claim stays true; ₹700 would be only 29.93% off. The tool does this when you fill in "Price for a % off".
Is GST charged on the MRP or on the discounted price?
When the discount is given before or at the time of sale and shown on the invoice, section 15(3)(a) of the CGST Act leaves it out of the taxable value, so GST is on the discounted price. A discount given after the sale, as a credit note or cashback, has its own conditions under section 15(3)(b); check those with your CA.
Can I sell above the MRP?
Not for pre-packed goods. Rule 18(2) of the Legal Metrology (Packaged Commodities) Rules, 2011 says no retailer or other person, including the manufacturer, packer or importer, may sell a pre-packed product at a price above its retail sale price. The tool flags a sale price above the MRP.
What is the difference between margin and markup?
Both use the same profit. Margin divides it by the price before GST; markup divides it by what the order costs you. A ₹713.33 taxable value on ₹480 of costs leaves ₹233.33: a 32.7% margin and a 48.6% markup.
Sources and checks
Rules last checked
The Discount and Sale Price Calculator follows these official pages:
- CGST Act, 2017: Section 15 (taxinformation.cbic.gov.in)
- Circular No. 92/11/2019-GST (cbic-gst.gov.in)
- Legal Metrology (Packaged Commodities) Rules, 2011 with all amendments (consumeraffairs.gov.in)
- The Guidelines for Prevention and Regulation of Dark Patterns, 2023 (consumeraffairs.gov.in)
Scores, limits and suggestions marked "our checklist", "our measure" or "our suggestion" are ours, not Google's or the platform's. How our tools work
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Related reading
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