Question

some goods/services for Rs.2000 and sells
10.Let A, B and C be there dealers in a GST chain. A buys some goods/services for a
it to B at a profit of Rs.500. B, in turn, sells the same goods/services to Cat a profit of
Rs.1,000.Taking the rate of GST as 18%, find:
(i)Input-tax payable by dealer A.
(ii)Input-tax payable by dealer B.
(iii)Total cost price for dealer C, if he is the end-user.
(iv)Output GST for dealer C(the end-user).
​

Answer 1

Step-by-step explanation:

1.For dealer A: C.P =RS. 2000

input tax payable by dealer A = tax on purchase

18%of 2000 =RS. 360

profit made = to 500 SP made= 2000 + 500 = 2500

2.For dealer B:

Input tax payable by B=Tax on purchase=

18%of 2500 =450/

profit=1,000

SP of B=2,500+1000=3500

3.As , dealer C is the last user

total price for C=S. P of B +18%of 3500=4130

4. Dealer C does not sell the product therefore

output gst=RS. 00

Answer 2

explanation is given with the above attachment