A dealer in Kanpur (U.P.) supplies goods worth ₹ 5000 to a dealer in Meerut (U.P.). The dealer in Meerut supplies the same goods/services to a dealer in Delhi at a profit of ₹ 2000. Find the cost of goods/services in Delhi as per GST system. The rate of GST is 18%.

When product is sold from Kanpur to Meerut (It is an intra-state transaction)

For dealer in Kanpur :

S.P. = ₹ 5000

CGST = 9% of ₹ 5000 = $\dfrac{9}{100} \times 5000 = ₹ 450$.

SGST = CGST = ₹ 450.

When product is sold from Meerut to Delhi (It is an inter-state transaction)

For dealer in Meerut :

Input-tax credit (ITC) = ₹ 450 + ₹ 450 = ₹ 900.

C.P. (excluding GST) = ₹ 5000

Profit = ₹ 2000

S.P. = ₹ 5000 + ₹ 2000 = ₹ 7000

IGST = 18% of ₹ 7000 = $\dfrac{18}{100} \times 7000$ = ₹ 1260

C.P. in Delhi = S.P. in Meerut + IGST = ₹ 7000 + ₹ 1260 = ₹ 8260.

Hence, cost of goods/services in Delhi = ₹ 8260.