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Two statements (I) and (II) are given below. These statements may be either independent causes or may be effects of independent causes or a common cause.One of these statements may be the effect of the other statement. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. I: Sales of the inlay product, which has a Geographic Indication (GI) tag, has taken a hit, say the craftsmen. II: Inlay work is done on tables and it draws a 28% GST as these products are clubbed with furniture. The tax outgo has doubled

Two statements (I) and (II) are given below. These statements may be either independent causes or may be effects of independent causes or a common cause.One of these statements may be the effect of the other statement. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. I: Sales of the inlay product, which has a Geographic Indication (GI) tag, has taken a hit, say the craftsmen. II: Inlay work is done on tables and it draws a 28% GST as these products are clubbed with furniture. The tax outgo has doubled Correct Answer Statement (II) is the cause and statement (I) is the effect.

The statement 'I' informs about sales taking a hit. This is an effect, while the statement 'II' informs about the rate of GST applicable on the inlay work, which is causing the sales to dwindle. 

So, option 2 is the correct answer.

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