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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 = 18100×9200\dfrac{18}{100} \times 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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