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    Question

    What does an Inverted Duty Structure imply under the

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

    Solution

    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. 

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