In 2015, India decided to make significant modifications to its national accounting system, bringing it in line with the United Nations System of National Accounts (SNA) of 2008. According to the SNA, gross value added is defined as the value of output less the value of intermediate consumption and is a measure of a producer's, industry's, or sector's contribution to GDP. GVA gives the rupee value of goods and services produced in the economy after deducting the cost of inputs and raw materials used. GVA is the principal entry on the revenue side of a country's accounting balance sheet, and it reflects the supply side from an economic standpoint. While India had previously measured GVA using 'factor cost,' GDP at 'factor cost' was the primary metric for assessing the country's overall economic output until the new methodology was implemented. GVA at basic prices became the primary measure of output across the economy's various sectors in the new series, with the base year shifted to 2011-12 from the previous 2004-05. GVA at basic prices includes production taxes and excludes production subsidies. GVA at basic price represents what accrues to the producer, before the product is sold. Hence statement 1 is incorrect. Non- factor income are certain money receipts that do not involve any sacrifice on the part of their recipients. These revenues are not gained by acting as a factor of production, and no productive effort is required to obtain them. These revenues are also known as transfer incomes because they consist only of money transfers with no goods or services delivered in exchange for the receipts. Gifts, donations, charities, taxes, fines, and so on are some of the most common instances. These earnings are excluded from the national income. Hence statement 2 is correct. The quantity (volume) of production has no bearing on production taxes. Stamp and registration fees, for example, are frequently levied even if products are not manufactured. Product taxes are based on the amount of goods produced. Excise tax, sales tax, and other product taxes or subsidies are paid or received per unit of product. Hence statement 3 is incorrect.