National Current Affairs – UPSC/IAS Exams- 27th December 2019

GST

Topic: Economy

In News: GST is facing problems with the efficiency of the outcomes.

More on the Topic:

• One of the key assumptions was that the introduction of Goods and Services Tax (GST) would raise the share of indirect taxes in Gross Domestic Product (GDP) and provide the wherewithal. But, it hasn’t worked out that way.
• Central revenue from GST may be anything up to 40% short of target this year, and the states are now complaining about non-receipt of their GST share.
• The Comptroller and Auditor General (CAG) has reported that the actual Central deficit is more than 2 % points higher than officially stated.

Where it went wrong?

• Lack of pragmatism: The political leadership did not realise until quite late in the day that GST is essentially a flat tax, with variations.
• So all the goods consumed by the poor, and broadly enjoying favourable tax treatment, would now attract a higher tax.
• Equally, the goods consumed by the wealthy would attract a lower tax.
• This led to the first mistake: Going political, and introducing extreme progressivity in GST rates (all the way from zero to 28%).
• Another mistake was to promise the states a guaranteed 14% increase in GST revenue from one year to the next.
• This, when a new monetary policy framework was being put in place for the RBI, with a target inflation rate of 4%
• What this meant was that an economy growing at 7% would ordinarily be expected to deliver nominal growth of about 11% – well short of the 14% revenue buoyancy promised to states.
• The compensation cess was available to help bridge the gap, but only for 5 years.
• Goods outside the scope: The third mistake was to keep key goods outside the scope of GST (petroleum products, tobacco, liquor, etc.,)
• Since these have usually accounted for the bulk of excise revenue, it affected calculations on what a revenue-neutral GST rate might be.
• Govt’s drive: Another mistake was the drive by the government to lower the cost of goods in the run-up to the general elections.
• In the process, the tax rate on many consumption goods was dropped more than the tax rate on their inputs.
• So we now have companies claiming refunds of taxes on inputs that are more than the GST they pay on their final produce.

Tax Evasion:

• People found all kinds of creative ways to turn black into white.
• There have spawned a fake-bill industry that provides convenient bills to producers, even as chunks of the production chain seem to have found a way to escape the GST net.
• The initial promise made was that eventually bills would be matched as a way of preventing such fraud. This will be put to the test in April; we will have to see if it is doable or just causes chaos.
• If it does not work, it will have belied one of the central promises of GST, that it would address tax evasion and raise the tax share of GDP.
• Even if invoice-matching proves successful, there are other elements of the system that are broken.

The Complexity Issue:

• Perhaps GST was too complex a system for the Indian economy at its present stage of development.
• Regardless, the Centre has to break heads in the GST Council and work out new slabs and rates (the fewer the better) and make a fresh start.

GST: · GST Law in India is a multi-stage, comprehensive, destination-based tax that is levied on every value addition. · In layman’s language, the Goods and Service Tax is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that existed earlier in the country. · GST is one indirect tax for the whole of India.

 Source: Business Standard

Universal Postal Union (UPU)

Topic: International Organisations

In News: The Union Cabinet has given its approval to the ratification of the Tenth Additional Protocol to the Constitution of the Universal Postal Union (UPU).

More on the Topic:

• The approval enables the Postal Administration of India to have the Instrument of Ratification signed with the Director-General of the International Bureau of the Universal Postal Union through diplomatic channels along with the approval of other Acts of the Union.
• It will also enable the Department of Posts to bring out any administrative orders to implement the provisions of the UPU Convention in India.

About UPU:

• It is a specialized agency of the United Nations (UN), established by the Treaty of Bern of 1874.
• It is Headquarters are located in Bern, Switzerland.
• The UPU contains four bodies consisting of the Congress, the Council of Administration (CA), the Postal Operations Council (POC) and the International Bureau (IB).
• It oversees the Telematics and Express Mail Service (EMS) Each member agrees to the same terms for conducting international postal duties.
• It coordinates postal policies among member nations, in addition to the worldwide postal system.

Source: Hindu

Pandit Madan Mohan Malaviya

Topic: Personalities in news

In News: Prime Minister of India paid tribute to Pt. Madan Mohan Malaviya on his 158th birth anniversary (25th December, 2019).

More on the Topic:

• He was an Indian educationist and politician notable for his role in the Indian independence movement.
• Malaviya became president of the Indian National Congress as many as four times.
• He was respectfully addressed as Pandit Madan Mohan Malaviya and also addressed as ‘Mahamana’.
• He was at the same time, a great patriot, an educationist with a vision, a social reformer, an ardent journalist, reluctant but effective lawyer, a successful parliamentarian and an outstanding statesman.
• Among Malaviyaji’s many achievements, the most monumental was the establishment of the Banaras Hindu University or Kashi Hindu Vishvavidyalaya. In the course of his lifetime Banaras Hindu University came to be known as a Capital of Knowledge acknowledged across India and the World.
• He also founded a highly influential, English-newspaper, The Leader published from Allahabad in 1909.
• Pt Malaviya was posthumously conferred with Bharat Ratna, India’s highest civilian award, in December 2014.

Source: PIB

Intersex Person Surgery

Topic: Society

In News: Various human rights bodies are calling for a ban on normative surgeries on infants and children except in life-threatening situations

More on the Topic:

• Call for nation-wide ban comes after the Tamil Nadu government banned normative surgeries on infants and children except in life-threatening situations after a historic judgment of the Madras High Court on April 22, 2019.
• The term intersex is confused with transgender, the two in-fact have very different meanings.
• Individuals who identify as transgender or transsexual have a gender that is different from the one traditionally associated with the sex they were assigned at birth.
• Intersex refers to people born with biological or physical characteristics that are more diverse than stereotypical male or female bodies.
• WHO and the UN Human Rights Council have called upon Member States to end invasive and irreversible medical surgeries and other medical treatment on intersex children.
• If adopted nationally, India could become only the third country after Malta and Taiwan, to have a legal regime which protects the rights of intersex children.

Model Mains Question: Critically comment on India’s official position on issues related to transgender rights.

Source: Hindu

Saptamatrikas

Topic: Art and Culture

In News: The Archaeological Survey of India (ASI) has discovered the earliest epigraphic evidence so far for the Saptamatrika cult.

More on the Topic:

• It is also the earliest Sanskrit inscription to have been discovered in South India as on date.
• Saptamatrikas are a group of seven female deities worshipped in Hinduism as personifying the energy of their respective consorts.
• The inscription is in Sanskrit and in Brahmi characters and was issued by Satavahana king Vijaya in 207 A.D. It was discovered in Chebrolu village in Guntur district of Andhra Pradesh.
• So far the Nagarjunakonda inscription of Ikshavaku king Ehavala Chantamula issued during 4th century A.D. was considered the earliest Sanskrit inscription in South India.

Source: Hindu

Tibetan Gazelles

Topic: Environment and Ecology

In News: The Tibetan Gazelles have been reduced in number.

More on the Topic:

• They are native to the Tibetan plateau, and are widespread throughout the region, inhabiting terrain between 3,000 and 5,750 m in elevation.
• They are almost restricted to the Chinese provinces of Gansu, Xinjiang, Tibet, Qinghai, and Sichuan, with tiny populations in the Ladakh and Sikkim regions of India.
• IUCN Status: Near Threatened

Source: Hindu

Indian Railway Management Service (IRMS)

Topic: Polity and Governance

In News: Cabinet has approved the merger of Railway’s eight services into one known as the Indian Railway Management Service (IRMS).

More on the Topic:

• All the new recruitments in railways will be conducted by the Union Public Service Commission.
• Indian Railway Management Service (IRMS) will be the single body which will take the preferences indicated by the candidates during filling the application form.
• Railway Board Composition: With new changes, the Chairman along with 4 members responsible for infrastructure, operations & business development, finance and rolling stock respectively will form Railway Board. The Board will also have some independent non-executive members. These independent members will be available during Board meetings but not involved with day to day running of railways.

Source: PIB