Question

Name and describe FIVE similarities and differences between goods and services other than tangibility

Answer 1

Answer:

Goods and Services Tax (GST) Definition -

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.

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Answer 2

Explanation:

The basic differences between goods and services are mentioned below:

Goods are the material items that the customers are ready to purchase for a price.

Services are the amenities, benefits or facilities provided by the other persons.

Goods are tangible items i.e. they can be seen or touched whereas services are intangible items.

When the buyer purchases the goods by paying the consideration, the ownership of goods moves from the seller to the buyer. Conversely, the ownership of services is non-transferable.

The evaluation of services is difficult because every service provider has a different approach of carrying out services, so it is hard to judge whose services are better than the other as compared to goods.

• Goods can be returned to or exchanged with the seller, but it is not possible to return or exchange services, once they are provided.

• Goods can be distinguished from the seller. On the other hand, services and service provider are inseparable.

• A particular product will remain same regarding physical characteristics and specifications, but services can never remain same.

• Goods can be stored for future use, but services are time bound, i.e. if not availed in the given time, then it cannot be stored.

• First of all the goods are produced, then they are traded and finally consumed, whereas services are produced and consumed at the same time.

Example: Books, pen, bottles, bags, etc.

• Example: Postal services, banking, insurance, transport, communication, etc.