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The GST calculation as described by you above is based on shipping. i.e.
System → Configuration → Tax
Tax Classes

* Tax Class for Shipping = Shipping

Calculation Settings

* Tax Based On = Shipping Address
* Catalog prices include tax = Yes
* Shipping prices include tax = Yes
* Apply Tax After Discount = Yes

There is no option in the magento Calculation Settings to calculate GST based on the product price.
I would like the GST to be calculated on the product price. How can this be done? Please advise.

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