Directions: The question given below consists of a statement, followed by two arguments numbered I and II. You have to decide which of the arguments is a 'strong' argument and which is a 'weak' argument.
Statement: Should the demand of exporters, who are facing liquidity challenges, for extending GST (Goods and Services Tax) exemption on freight be met?
Arguments:
I. Yes, because GST on export freight is revenue-neutral as exporters can claim a refund after making the payment. So, extending the exemption will improve exporters' liquidity.
II. Yes, because GST on export freight is levied by the central government, which has the discretionary powers to provide exemption from the tax.
1
Only argument I is strong
2
Only argument II is strong
3
Either I or II is strong
4
Neither I nor II is strong
5
Both I and II are strong