A is a dealer in Banaras (UP). He supplies goods/services worth Rs. 8,000 to a dealer B in Agra (UP). Dealer B, turn, supplies the same goods/services to dealer C in Patna (Bihar) at a profit of Rs. 1,200. Find the input and output taxes for the dealer C under GST system, if the rate of GST is `18%` and C does not sell his goods/services further.

Answer

To solve the problem step by step, we will calculate the input and output taxes for dealer C under the GST system.

### Step 1: Determine the Selling Price for Dealer B
Dealer A supplies goods worth Rs. 8,000 to dealer B.

- Selling Price (SP) for Dealer B = Rs. 8,000

### Step 2: Calculate the Cost Price for Dealer B
The cost price (CP) for dealer B is the same as the selling price from dealer A.

- Cost Price (CP) for Dealer B = Rs. 8,000

### Step 3: Calculate the Selling Price for Dealer B to Dealer C
Dealer B sells the goods to dealer C at a profit of Rs. 1,200.

- Selling Price (SP) for Dealer B to Dealer C = Cost Price + Profit
- SP = Rs. 8,000 + Rs. 1,200 = Rs. 9,200

### Step 4: Determine the Cost Price for Dealer C
The cost price for dealer C is the selling price from dealer B.

- Cost Price (CP) for Dealer C = Rs. 9,200

### Step 5: Calculate the Input Tax for Dealer C
Since the transaction from dealer B to dealer C is an interstate transaction, we will calculate the Integrated Goods and Services Tax (IGST).

- GST Rate = 18%
- Input Tax (IGST) = 18% of CP for Dealer C
- Input Tax = (18/100) × Rs. 9,200 = Rs. 1,656

### Step 6: Determine the Output Tax for Dealer C
Since dealer C does not sell the goods/services further, the output tax will be zero.

- Output Tax = Rs. 0

### Final Summary
- Input Tax for Dealer C = Rs. 1,656
- Output Tax for Dealer C = Rs. 0

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