S & Sons, an unregistered supplier under GST, purchases material from V Ltd. which is a GST registered supplier. The following information is…

Calculation of cost per unit: Particulars Units Amount (₹) Listed Price of Materials 5,000 5,00,000 Less: Trade discount @ 10% on invoice price (50,000) 4,50,000 Add: GST @18% of 4,50,000 81,000 5,31,000 Add: Toll Tax 1,800 Freight and Insurance 36,000 Commission and Brokerage Paid 10,000 Add: Cost of returnable containers: Amount deposited 30,000 Less: Amount refunded 26,000 4,000 5,82,800 Add: Other Expenses @ 2% of Total Cost (₹ 5,82,800 × 2%) 11,894 Total cost of material 5,94,694 Less: Shortage material due to normal reasons @ 5% 250 - Total cost of material of good units 4,750 5,94,694 Cost per unit (₹ 5,94,694 / 4,750 units) 125.20 Note: GST is payable on net price i.e., listed price less discount.GST paid on purchase is added with cost as ITC on GST cannot be claimedCash discount is treated as interest and finance item; hence it is ignored.Demurrage is penalty imposed by the transporter for delay in uploading or off-loading of materials. It is an abnormal cost and not included.Shortage due to normal reasons should not be deducted from cost to ascertain total cost of good units.