Calcculate Profit Including Tax

Hello,

We have implemented GST (India) as a tax system for woocommerce. When we are purchasing an item, it includes tax.

So, Purchase Price = Actual Cost Price + GST

Profit Should be = Sale Price – Purchase Price

We have to show GST on invoices for customers but for profit calculation, it should not cover. Because In India GST System is like this

Actual Sales Tax = GST on Sales (Inclusive) – GST on Purchase

I am explaining with an example,

I have purchased an “ITEM A” for an actual price of INR100 and paid 12% tax, so the purchase price = INR 112

now, I made a sale of this unit, for INR 150 inclusive tax (GST 12%). So, the calculation is

Sale Price = INR 150 (Incl tax @12% which is INR 16.07); Purchase Price = INR 112 (Incl Tax)

Total profit = INR 150 – INR 112 – (INR 16.07 – INR 12) [Difference between Sales Tax and Purchase Tax]

So, Total profit = INR 33.93

Please help me to calculate my profit, as I am seeing the wrong data which is directly deducting Tax from the sales price and then subtracting the purchase price. I hope I have explained in detail.