MP = ₹50000
Discount = 10%
Price for the Dealer = 90100×50000 = ₹45000
Dealer sells it at a profit of 20% to customer.
Price for customer = 120100×45000 = ₹54000
GST at every stage = 18%.
∴ Net tax liability of dealer = Output GST - Input GST credit (ITC)
= 18% of (54000 - 45000)
= 18% of ₹9000
= 18100×9000
= ₹1620
∴ the net tax liability of the dealer to the Government is ₹1620.