Let A, B and C be three dealers in a GST chain. A buys some goods/services for Rs. 2,000 and sells it to B at a profit of Rs. 500. B, in turn sells the same goods/services to C at profit of Rs. 1,000. Taking the rate of GST as `18%` find :
Input-tax payable by dealer B.

Answer

To find the input tax payable by dealer B in the given GST chain, we will follow these steps:

### Step 1: Determine the Cost Price (CP) for Dealer A
Dealer A buys goods/services for Rs. 2,000.

### Step 2: Calculate the Selling Price (SP) for Dealer A
Dealer A sells the goods/services to dealer B at a profit of Rs. 500.
- Selling Price (SP) of Dealer A = Cost Price (CP) + Profit
- SP of Dealer A = Rs. 2,000 + Rs. 500 = Rs. 2,500

### Step 3: Calculate the Input Tax Payable by Dealer B
Dealer B purchases the goods/services from Dealer A for Rs. 2,500. We need to calculate the input tax payable by Dealer B based on this amount.
- GST Rate = 18%
- Input Tax Payable by Dealer B = GST on Purchase Price
- Input Tax Payable = (18/100) * Rs. 2,500

### Step 4: Perform the Calculation
- Input Tax Payable = (18/100) * 2500 = Rs. 450

### Final Answer
The input tax payable by dealer B is Rs. 450.

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