Mathematics
A is a dealer in Banaras (U.P.). He supplies goods/services, worth ₹ 8000 to a dealer B in Agra (U.P.) Dealer B in turn, supplies the same goods/services to a dealer C in Patna (Bihar) at a profit of ₹ 1200. Find the input and output taxes for the dealer C under GST system; if the rate of GST is 18% and C does not sells his goods/services further.
GST
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Answer
According to question,
For dealer A (intra-state transaction)
S.P. = ₹ 8000
For dealer B
C.P. = ₹ 8000
CGST = 9% of ₹ 8000 = ₹ 720
SGST = 9% of ₹ 8000 = ₹ 720
Given, Profit = ₹ 1200
S.P. = ₹ 8000 + ₹ 1200 = ₹ 9200.
For dealer C (inter-state transaction)
C.P. = ₹ 9200
IGST = 18% of ₹ 9200 = = ₹ 1656.
∴ Input tax = ₹ 1656.
As the dealer in Patna does not sell product,
∴ Output tax = ₹ 0.
Hence, the input tax = ₹ 1656 and output tax = ₹ 0.
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