Subjects accounting

Gst Calculation B3Dcea

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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.