Question

What does an Inverted Duty Structure imply under the GST framework?

Q: Answer-What does an Inverted Duty Structure imply under the GST framework?

An Inverted Duty Structure arises when the input GST tax on purchases exceeds the output GST tax on sales. This can lead to increased input tax credit and cash flow issues for businesses.

A The GST rate on sales is higher than the rate on purchases.

B The GST rate on sales is equal to the rate on purchases.

C The GST rate on purchases is higher than the rate on sales.

D There is no GST payable on sales.

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What does an Inverted Duty Structure imply under the GST framework?

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