Question

Give any two examples of the impact of changes in the legal environment on business organisations.

Answer 1

• Introduction of the Goods and Services Tax (GST): The rollout of GST in India replaced multiple indirect taxes with a single tax structure. This required businesses to overhaul their billing systems, accounting practices, and pricing strategies. It also created compliance challenges and opportunities for streamlining tax processes.
• Consumer Protection Act, 2019: The new act introduced stricter rules for misleading advertisements, product liability, and e-commerce transactions. Businesses had to revise their marketing practices, strengthen customer service mechanisms, and ensure product safety and transparency to avoid penalties.