Gst Calculation B3Dcea
1. **Problem Statement:**
Dealer A buys goods for 2000 and sells to B at a profit of 500.
Dealer B sells to C at a profit of 1000.
GST rate is 18%.
Find:
(i) GST payable by dealer A.
(ii) Input tax paid by dealer B.
2. **Formulas and Rules:**
GST is calculated on the selling price.
GST payable = Selling Price \times GST Rate.
Input tax credit for a dealer = GST paid on purchase.
3. **Calculations for dealer A:**
Cost price for A = 2000.
Profit for A = 500.
Selling price by A = 2000 + 500 = 2500.
GST payable by A = 2500 \times 0.18 = 450.
4. **Calculations for dealer B:**
Cost price for B = Selling price by A = 2500.
Profit for B = 1000.
Selling price by B = 2500 + 1000 = 3500.
Input tax paid by B = GST paid on purchase from A = 450.
**Final answers:**
(i) GST payable by dealer A = 450.
(ii) Input tax paid by dealer B = 450.