Goods from Delhi are sold to Ranchi (Jharkhand) for ₹ 20,000 and then from Ranchi to Cuttack (Odisha). If the rate of GST is 18%, and the profit made at Ranchi is ₹ 5,000, then :

(i) The net GST payable by the dealer in Ranchi is :

1. ₹ 1,000

2. ₹ 900

3. ₹ 850

4. ₹ 875

(ii) The cost of goods at Cuttack is :

1. ₹ 26,250

2. ₹ 27,800

3. ₹ 29,500

4. ₹ 31,200

(i) Given,

Goods from Delhi are sold to Ranchi (Jharkhand) for ₹ 20,000 and then from Ranchi to Cuttack (Odisha).

Rate of GST = 18%

Transaction from Delhi to Ranchi :

This is an interstate transaction.

IGST % = GST % = 18%

IGST = $\dfrac{18}{100} \times 20,000$ = ₹ 3,600

GST paid by dealer in Ranchi = ₹ 3,600

Transaction from Ranchi to Cuttack :

Profit made by dealer in Ranchi = ₹ 5,000

Goods cost for dealer in Cuttack (without tax) = ₹ 20,000 + ₹ 5,000 = ₹ 25,000

This is an interstate transaction.

IGST % = GST % = 18%

IGST = $\dfrac{18}{100} \times 25,000$ = ₹ 4,500

GST charged by dealer in Ranchi = ₹ 4,500

Net GST payable by dealer in Ranchi = GST charged by dealer in Ranchi - GST paid by dealer in Ranchi

= ₹ 4,500 - ₹ 3,600

= ₹ 900.

Hence, option 2 is the correct option.

(ii) Cost of goods at Cuttack = Goods cost for dealer in Cuttack (without tax) + IGST

= ₹ 25,000 + ₹ 4,500

= ₹ 29,500

Hence, option 3 is the correct option.