A product is sold from Kanpur (U.P.) to Banaras (U.P.) for Rs. 12,000 and then from Banaras to Ranchi (jharkhand) at a profit of Rs 4,000. If the rate of GST is `18%` find the net GST payable at Banaras.

Answer

To find the net GST payable at Banaras, we will follow these steps:

### Step 1: Identify the Selling Price (SP) and Profit
- The product is sold from Kanpur to Banaras for Rs. 12,000.
- The product is then sold from Banaras to Ranchi at a profit of Rs. 4,000.

### Step 2: Calculate the Selling Price from Banaras to Ranchi
- Selling Price from Banaras to Ranchi = Selling Price from Kanpur to Banaras + Profit
- Selling Price from Banaras to Ranchi = Rs. 12,000 + Rs. 4,000 = Rs. 16,000.

### Step 3: Let the Cost Price (CP) from Kanpur to Banaras be 'x'
- We know that the Selling Price (SP) is related to the Cost Price (CP) and GST.
- The formula for Selling Price including GST is:
\[ SP = CP + GST \]
or
\[ SP = CP \times (1 + \text{GST rate}) \]

### Step 4: Set Up the Equation for CP from Kanpur to Banaras
- Given SP from Kanpur to Banaras = Rs. 12,000 and GST rate = 18% (or 0.18).
- Therefore, we can write:
\[ 12000 = x \times (1 + 0.18) = x \times 1.18 \]

### Step 5: Solve for CP (x)
- Rearranging the equation gives:
\[ x = \frac{12000}{1.18} \]
- Calculating this:
\[ x = 10169.49 \text{ (approximately)} \]

### Step 6: Calculate the GST on CP from Kanpur to Banaras
- GST on CP = 18% of CP
- GST = 0.18 × 10169.49 = Rs. 1830.51 (approximately).

### Step 7: Calculate the CP from Banaras to Ranchi
- The CP from Banaras to Ranchi is the same as the SP from Kanpur to Banaras, which is Rs. 12,000.

### Step 8: Calculate the GST on CP from Banaras to Ranchi
- GST on CP from Banaras to Ranchi = 18% of Rs. 12,000
- GST = 0.18 × 12000 = Rs. 2160.

### Step 9: Calculate the Total GST Payable at Banaras
- Total GST = GST on CP from Kanpur to Banaras + GST on CP from Banaras to Ranchi
- Total GST = Rs. 1830.51 + Rs. 2160 = Rs. 3990.51 (approximately).

### Final Answer
- The net GST payable at Banaras is Rs. 3990.51 (approximately).

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