Let A,B and C be three traders belonging to different states. Trader A sells some goods/services to trade B for Rs. 500 and trader B sells the same goods/services to trade C at a profit of Rs. 200. Calculate the tax liability of B, if the rate of GST is `12%`.

Answer

To calculate the tax liability of Trader B, we will follow these steps:

### Step 1: Determine the Selling Price of Trader B
Trader A sells goods to Trader B for Rs. 500. Trader B sells the same goods to Trader C at a profit of Rs. 200.

**Calculation:**
Selling Price of Trader B = Cost Price + Profit
Selling Price of Trader B = Rs. 500 + Rs. 200
Selling Price of Trader B = Rs. 700

### Step 2: Calculate the Profit of Trader B
The profit made by Trader B is Rs. 200, as given in the problem.

### Step 3: Calculate the GST on the Profit
The GST rate is given as 12%. To find the tax liability of Trader B, we need to calculate the GST on the profit of Rs. 200.

**Calculation:**
GST = (Rate of GST / 100) * Profit
GST = (12 / 100) * 200
GST = 0.12 * 200
GST = Rs. 24

### Step 4: Conclusion
The tax liability of Trader B is Rs. 24.

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