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What GST credits is S daycare eligible for?

  1. Credit equal to GST paid on food

  2. No credits, as child care is tax exempt

  3. Full reimbursement of GST

  4. Partial GST credit based on operation size

The correct answer is: No credits, as child care is tax exempt

Explanation The correct option is B because, in general, child care services are exempt from GST. Options A and C are incorrect because they state credits or reimbursement, both of which are not applicable since child care services are tax exempt. Option D is incorrect because the GST credit is not based on the operation size, but rather on the type of service provided.