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    Question

    In the context of GST, what does an Inverted Duty

    Structure imply?
    A The GST rate on sales is higher than the GST rate on purchases. Correct Answer Incorrect Answer
    B The GST rate on sales is equal to the GST rate on purchases. Correct Answer Incorrect Answer
    C The GST rate on purchases is more than the GST rate payable on sales. Correct Answer Incorrect Answer
    D There is no GST payable on sales. Correct Answer Incorrect Answer

    Solution

    An Inverted Duty Structure occurs when the GST paid on inputs is higher than the GST collected on sales, often leading to excess input tax credits for businesses.

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