What is the difference between zero-rated supplies and tax exempt supplies?

Choose the correct answer.

A.

Tax exempt supplies are eligible for input tax credits, zero-rated supplies are not.

B.

Zero-rated supplies have a tax rate of zero for BOTH GST and HST, tax exempt supplies are not necessarily exempt from both.

C.

Tax exempt supplies are exempt from BOTH GST and HST, zero-rated supplies are not.

D.

Zero-rated supplies are eligible for input tax credits, tax exempt supplies are not.