Footwear having a retail sale price not exceeding Rs.500 per pair [provided that such retail sale price is indelibly marked or embossed on the footwear itself] attracts 5% GST. Does the retail sale price referred to above include the GST

1. As per the Legal Metrology (Packaged Commodities) Rules, 2011, retail sale
price [RSP] means the maximum price at which the commodity in packaged
form may be sold to the consumer and is inclusive of all taxes.
2. Thus, retail sale price declared on the package is inclusive of GST.
3. GST for footwear will be 5% if the RSP does not exceed Rs. 500 per pair. The GST rate will be 18% if the RSP exceeds Rs. 500 per pair.
4. GST, however, will be payable on the transaction value.

(FAQ 32: GST RATES FAQ 27.07.2017)