Question

GST (Goods and Service Tax) is a landmark step in the history of India by rationalising taxation. GST is going to be a changer for the country’s economy and promote ease of doing business. It will mark a paradigm shift in the nation’s business environment. Identify the components of business environment.

Options

• Legal and Economic Environment

• Political and Legal Environment

• Legal and Social Environment

• Economic and Social Environment

Answer 1

Legal and Economic Environment

Explanation:

The introduction of GST (Goods and Services Tax) reflects two major components of the business environment:

1. Economic Environment: GST rationalizes the tax structure, simplifies tax compliance, and promotes ease of doing business, which has a direct impact on the economy and business operations.
2. Legal Environment: 
   • GST is a law passed by the government, affecting how businesses operate, file taxes, and price their goods/services.
   • It is a part of the legal framework that businesses must comply with.