Impact of gst on commodity market in india black book
Answers
Explanation:
Profit Motive
The purpose of most businesses is to increase profit and avoid losses. That is the driving force behind capitalism and the free market economy. The profit motive drives businesses to come up with creative new products and services. They then sell them to the most people. Most important, they must do it all in the most efficient manner possible. Theorists Milton Friedman and Friedrich Hayek argue that the profit motive is the most efficient way to allocate economic resources. According to them, greed is goodFunction # 2. A Measure of Value:
Under the barter system, it is very difficult to measure the value of goods. For example, a horse may be valued as worth five cows or 100 quintals of wheat, or a Maruti car may be equivalent to 10 two- wheelers. Thus one of the disadvantages of the barter system is that any commodity or service has a series of exchange values.
GST would have a major impact in the commodity market where multiple taxes would be replaced by a single tax. It should reduce the level of inflation and be able generate revenue for the country.
Explanation:
- The impact of GST in the commodity market will attract foreign investments and increase the level of competition in the export markets since GST tax is accepted in the international markets
- Government has taken out the comprehensive GST tax that would be levied on the manufacture, consumption and sale of goods and service at nationally.
- GST would also be levied for the supply of goods and services and is seen as one tax for one market in India. There would be no other interstate taxes levied for the sale and purchase of commodities in the country.
To know more about GST
What is GST and what are the characteristics of GST
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