Under the GVA (Gross Value Added) framework adopted in Indian National Accounts, which formula correctly connects GVA at Basic Prices to GDP at Market Prices?

Under the national accounting framework, GVA at Basic Prices and GDP at Market Prices differ because of taxes and subsidies on products. The relationship is: GDP at Market Prices = GVA at Basic Prices + Product Taxes − Product Subsidies Alternatively: GDP at Market Prices = GVA at Basic Prices + Net Taxes on Products where: Net Taxes on Products = Product Taxes − Product Subsidies It is also useful to distinguish between production taxes and product taxes. GVA at Basic Prices can be related to GVA at Factor Cost as: GVA at Basic Prices = GVA at Factor Cost + Production Taxes − Production Subsidies Production Taxes: These are taxes associated with production but are not directly proportional to the quantity or value of a particular product. Product Taxes: These are taxes payable per unit or as a proportion of the value of goods and services produced or transacted. Thus, the relevant bridge between GVA at Basic Prices and GDP at Market Prices is net taxes on products. Therefore: GDP at Market Prices = GVA at Basic Prices + Product Taxes − Product Subsidies Hence, option (B) is correct.