With respect to the GST/HST, supplies fall under different categories with different sets of rules. Which of the following statements is incorrect with regard to exempt supplies?

1. Input tax credits may be claimed on expenditures made to provide the exempt supplies.

B. Exempt supplies are not included in the determination of the mandatory reporting period.

C. Childcare services and music lessons are examples of exempt supplies.

D. GST/HST is not applicable.