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 :
Output GST for dealer C (the end - user).

Answer

To solve the problem step by step, we will calculate the output GST for dealer C in the GST chain involving dealers A, B, and C.

### Step 1: Calculate the Input Tax for Dealer A
- **Cost Price for Dealer A (CP_A)** = Rs. 2000
- **GST Rate** = 18%
- **Input Tax for Dealer A** = 18% of CP_A
\[ \text{Input Tax for A} = \frac{18}{100} \times 2000 = 360 \text{ Rs.} \]

### Step 2: Calculate the Selling Price for Dealer A
- **Profit for Dealer A** = Rs. 500
- **Selling Price for Dealer A (SP_A)** = CP_A + Profit
\[ SP_A = 2000 + 500 = 2500 \text{ Rs.} \]

### Step 3: Calculate the Input Tax for Dealer B
- **Cost Price for Dealer B (CP_B)** = SP_A = Rs. 2500
- **Input Tax for Dealer B** = 18% of CP_B
\[ \text{Input Tax for B} = \frac{18}{100} \times 2500 = 450 \text{ Rs.} \]

### Step 4: Calculate the Selling Price for Dealer B
- **Profit for Dealer B** = Rs. 1000
- **Selling Price for Dealer B (SP_B)** = CP_B + Profit
\[ SP_B = 2500 + 1000 = 3500 \text{ Rs.} \]

### Step 5: Calculate the Output GST for Dealer C
- **Cost Price for Dealer C (CP_C)** = SP_B = Rs. 3500
- **Output GST for Dealer C** = 18% of CP_C
\[ \text{Output GST for C} = \frac{18}{100} \times 3500 = 630 \text{ Rs.} \]

### Step 6: Calculate the Total Amount Paid by Dealer C
- **Total Amount for Dealer C** = CP_C + Output GST
\[ \text{Total Amount for C} = 3500 + 630 = 4130 \text{ Rs.} \]

### Final Output
- The output GST for dealer C (the end-user) is **Rs. 630**.

---