Which of the following statements is related to the benefit of the "Input Tax Credit Mechanism" of GST ?
The Input Tax Credit (ITC) mechanism under GST avoids double taxation (the cascading tax-on-tax effect) by allowing eligible tax paid on inputs to be credited against output…
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Which of the following statements is related to the benefit of the "Input Tax Credit Mechanism" of GST ?
Answer and explanation
Correct answer A
The Input Tax Credit (ITC) mechanism under GST avoids double taxation (the cascading tax-on-tax effect) by allowing eligible tax paid on inputs to be credited against output tax. It does not eliminate taxation on production or the requirement for producers to maintain records.
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