A is a dealer in Meerut (UP). He supplies goods/services, worth ₹ 15000 to dealer B in Ratlam (MP). Dealer B, in turn, supplies the same goods/services to dealer C in Jabalpur (MP) at a profit of ₹ 3000. If the rate of tax (under the GST system) is 18%, find :

(i) the cost (excluding GST) of goods/services to the dealer C in Jabalpur (assuming that the dealer C does not sell the goods/services further).

(ii) net tax payable by dealer B.

For A (case of inter-state transaction)

S.P. in Meerut = ₹ 15000

IGST = 18% of 15000 = $\dfrac{18}{100} \times ₹ 15000$ = ₹ 2700.

Input tax for B = ₹ 2700.

Given profit on selling to C = ₹ 3000

∴ S.P. in Ratlam = ₹ 15000 + ₹ 3000 = ₹ 18000.

For C (case of intra-state transaction)

C.P. = ₹ 18000

CGST = 9% of ₹ 18000 = $\dfrac{9}{100} \times 18000$ = ₹ 1620

SGST = CGST = ₹ 1620.

(i) Cost for dealer C = S.P. for dealer in Ratlam + GST = ₹ 18000 + ₹ 1620 + ₹ 1620 = ₹ 21240.

Hence, the cost of goods/services for dealer C = ₹ 21240.

(ii) Output tax for B = CGST + SGST = ₹ 1620 + ₹ 1620 = ₹ 3240

∴ Net GST payable by dealer B = Output tax - Input tax = ₹ 3240 - ₹ 2700 = ₹ 540.

Hence, the net tax payable by dealer = ₹ 540.