• The reserve was formally notified as the Sahyadri Tiger Reserve in 2008, with the primary objective of conserving the critically endangered Bengal tiger and its habitat. It was formed by amalgamating several existing protected areas, including wildlife sanctuaries and national parks.
• The total area of the Sahyadri Tiger Reserve is approximately 1,165 square kilometres, making it one of the significant tiger habitats in the Western Ghats region. It encompasses diverse ecosystems ranging from dense forests and grasslands to rivers and streams.
• The reserve is renowned for its remarkable biodiversity, harbouring a wide array of plant and animal species. The dense forests of the Western Ghats are home to an abundance of flora, including endemic species and rare medicinal plants. As for fauna, besides the iconic Bengal tiger, the reserve supports populations of leopards, Indian bison (gaur), sambar deer, barking deer, wild boar, and various species of primates, birds, and reptiles.
• The Sahyadri Tiger Reserve is actively involved in conservation efforts aimed at protecting its flagship species, particularly the Bengal tiger. Conservation measures include habitat restoration, anti-poaching patrols, community-based initiatives, and scientific research to monitor wildlife populations and ecological health.
• While conservation remains the primary focus, the Sahyadri Tiger Reserve also promotes responsible nature-based tourism. Visitors have the opportunity to explore the reserve through guided safaris, nature trails, and eco-tourism activities, providing an immersive experience of the natural beauty of the Western Ghats.
• Like many other protected areas, the Sahyadri Tiger Reserve faces various challenges, including habitat fragmentation, human-wildlife conflict, illegal poaching, and encroachment. Efforts are underway to address these challenges through community participation, stakeholder engagement, and sustainable conservation practices.

• Tiger translocation initiatives have been implemented in India since 2008, with varying degrees of success.
• While projects like those in Sariska Tiger Reserve (2008) and Panna Tiger Reserve (2009) have demonstrated successful tiger reintroductions, others, such as the effort in Satkosia Tiger Reserve in Odisha, have faced significant challenges and setbacks.
• Translocation projects should be considered as a last resort, with careful consideration given to alternative strategies such as habitat improvement, prey augmentation, and corridor strengthening.
• The success of translocations relies heavily on the presence of robust tiger corridors, which facilitate dispersal and connectivity between populations.
• Strengthening and securing these corridors are essential for the long-term success and sustainability of translocation projects.
• The failure of the translocation project in Satkosia underscores the importance of effective community engagement and management.
• Poor management of community apprehensions and lack of consultation with local stakeholders led to violent protests and conflict following the reintroduction of tigers.
• Tragic incidents, including human fatalities and the death of translocated tigers, further exacerbated tensions.
• Effective communication and consultation with local communities are imperative to address concerns and garner support for translocation initiatives.
• Villagers must be included in the decision-making process and adequately informed about the project's objectives and potential impacts.
• Building trust and fostering collaboration between authorities and local residents are essential for successful tiger translocation and coexistence efforts.

• Wildlife corridors serve as crucial pathways connecting fragmented wildlife populations, bridging gaps created by human settlements and infrastructure development.
• These corridors are essential for the long-term survival of species like tigers, as they prevent localized extinctions and facilitate the exchange of genetic diversity, vital for maintaining healthy populations.
• Tigers, with their expansive home ranges, heavily rely on these corridors to navigate through human-dominated landscapes in search of mates and resources.
• The significance of wildlife corridors in conservation has been widely recognized and integrated into policy decisions.
• Mitigation measures such as underpasses and wildlife crossings are now commonplace in linear infrastructure projects to safeguard tigers and other wildlife.
• Advocacy, litigation, and policymaking efforts have played instrumental roles in promoting corridor conservation.
• Examples include the construction of wildlife overpasses, such as the one on National Highway-7 between Kanha and Pench Tiger Reserves, which protects the migratory routes of tigers underneath the highway.
• Mapping initiatives by organizations like the National Tiger Conservation Authority and Wildlife Institute of India have identified 32 major tiger corridors across different landscapes in India.
• These corridors represent crucial lifelines for tiger populations, ensuring their connectivity and long-term viability across diverse habitats.

• The Sahyadri-Konkan corridor, also known as the Sahyadri-Radhanagari-Goa-Karnataka corridor, plays a pivotal role in ensuring the long-term survival of tiger populations in the northern Western Ghats.
• This crucial corridor connects the source population area in Kali Tiger Reserve, Karnataka, to the forests in Goa's hinterland, providing tigers with vital connectivity to Radhanagari Wildlife Sanctuary, conservation reserves in Sindhudurg district, and the Sahyadri Tiger Reserve (STR).
• However, the extensive presence of human settlements and development activities poses a significant threat to this corridor, fragmenting it at multiple locations and hindering tiger movement.
• Such fragmentation increases the likelihood of man-animal conflicts, further jeopardizing tiger conservation efforts. With plans underway for tiger translocations to Sahyadri, the urgent need to strengthen this corridor cannot be overstated.
• Without concerted efforts to enhance connectivity, even a breeding population of tigers would struggle to disperse to other forests, compromising their long-term survival.
• The regular dispersal of tigers from Kali Tiger Reserve towards Goa, where the prey base is relatively low. Despite having seven to eight tigers in its protected areas, Goa's forest department has resisted calls to declare a tiger reserve.
• These corridors are not only critical for wildlife but also essential for the water security of communities residing around these forests in Goa and Karnataka. Additionally, these areas hold cultural significance, as tigers are revered here.
• Effective coordination between Maharashtra, Goa, and Karnataka is imperative to address this issue comprehensively and ensure the sustainable management of this vital corridor.

SWELL WAVES

2. Article 370 of the Indian Constitution

Article 370 of the Indian Constitution is a provision that granted special autonomous status to the state of Jammu and Kashmir (J&K). It played a crucial role in shaping the relationship between the Indian government and the region but has also been a topic of intense debate and controversy. This article aims to provide an overview of Article 370, its historical context, key provisions, and the debates surrounding its revocation.

3. Historical Context

Article 370 was incorporated into the Indian Constitution in 1949, during the process of integrating the princely states into the newly independent India. At the time, Jammu and Kashmir was a princely state ruled by Maharaja Hari Singh. The article was introduced to accommodate the unique circumstances of the region and to respect the wishes of its people.

4. Key Provisions of Article 370:

• Autonomy: Article 370 granted Jammu and Kashmir a certain degree of autonomy, allowing it to have its own constitution, flag, and the power to legislate on matters other than defense, foreign affairs, and communications.
• Application of Central Laws: The central government had limited jurisdiction in the state, and its laws were only applicable if the state government specifically consented.
• Dual Citizenship: Residents of Jammu and Kashmir were considered citizens of both the state and India. This provision was meant to preserve the distinct identity of the region.

5. Contemporary Debates and Criticisms:

• Integration vs. Alienation: Critics of Article 370 argued that it perpetuated a sense of separatism and hindered the integration of Jammu and Kashmir with the rest of India. They claimed that the special status prevented the extension of progressive laws and policies to the region.
• Gender Inequality: Another point of contention was the discriminatory provision that denied property rights to women who married individuals from outside the state. This provision was seen as undermining the principles of gender equality and human rights.
• National Security Concerns: Some argued that the autonomous status provided by Article 370 hindered the Indian government's ability to effectively tackle security challenges in the region, particularly the cross-border militancy.

6. Revocation of Article 370

In August 2019, the Indian government, under the leadership of Prime Minister Narendra Modi, made the historic decision to revoke the special status of Jammu and Kashmir. The government argued that this move would facilitate the integration of the region and bring socio-economic development to its people. However, the revocation was met with mixed reactions, both within and outside of the region.

7. Way forward

Article 370 of the Indian Constitution was a unique provision that granted special autonomous status to the state of Jammu and Kashmir. While it aimed to respect the aspirations of the people of the region, it also sparked debates and controversies. The decision to revoke Article 370 in 2019 marked a significant shift in the relationship between the Indian government and Jammu and Kashmir. The consequences of this decision, both positive and negative, are still unfolding, and the future trajectory of the region remains uncertain.

HEATWAVE

 

1. Context

Heatwaves arrive like clockwork over many regions of the world and are getting even more attention due to the upward trends in many regions in terms of their duration, frequency, intensity, and scale.

2. What is a Heat Wave?

• A heatwave is a period of abnormally high temperatures, a common phenomenon in India during the months of May-June and in some rare cases even extends till July.
• Indian Meteorological Department (IMD) classifies heat waves according to regions and temperature ranges. As per IMD, the number of heatwave days in India has increased from 413 over 1981-1990 to 600 over 2011-2020.
• This sharp rise in the number of heatwave days has resulted due to the increasing impact of climate change.
• The last three years have been La Niña years, which has served as a precursor to 2023 likely being an El Niño year. (The El Niño is a complementary phenomenon in which warmer water spreads west­east across the equatorial Pacific Ocean.)
• As we eagerly await the likely birth of an El Niño this year, we have already had a heat wave occur over northwest India.
• Heat waves tend to be confined to north and northwest India in El Niño years.

 

Image Source:News18

3. How do Heat waves Occur?

• Heat waves are formed for one of two reasons warmer air is flowing in from elsewhere or it is being produced locally.
• It is a local phenomenon when the air is warmed by higher land surface temperature or because the air sinking down from above is compressed along the way, producing hot air near the surface.
• First of all, in spring, India typically has air flowing in from the west­northwest. This direction of air­flow is bad news for India for several reasons.
• Likewise, air flowing in from the northwest rolls in over the mountains of Afghanistan and Pakistan, so some of the compression also happens on the leeward side of these mountains, entering India with a bristling warmth.
• While air flowing over the oceans is expected to bring cooler air, the Arabian Sea is warming faster than most other ocean regions.
• Next, the strong upper atmospheric westerly winds, from the Atlantic Ocean to India during spring, control the near-surface winds.
• Any time winds flow from the west to the east, we need to remember that the winds are blowing faster than the planet which also rotates from west to east.
• The energy to run past the earth near the surface, against surface friction, can only come from above. This descending air compresses and warms up to generate some heat waves.

4. Impacts of heat waves in India

• The frequent occurrence of heat waves also adversely affects different sectors of the economy.
• For instance, the livelihood of poor and marginal farmers is negatively impacted due to the loss of working days.
• Heatwaves also have an adverse impact on daily wage workers' productivity, impacting the economy.
• Crop yields suffer when temperatures exceed the ideal range.
• Farmers in Haryana, Punjab, and Uttar Pradesh have reported losses in their wheat crop in the past rabi season. Across India, wheat production could be down 6-7% due to heat waves.
• Mortality due to heat waves occurs because of rising temperatures, lack of public awareness programs, and inadequate long-term mitigation measures.
• According to a 2019 report by the Tata Center for Development and the University of Chicago, by 2100 annually, more than 1.5 million people will be likely to die due to extreme heat caused by climate change.
• The increased heat wave will lead to an increase in diseases like diabetes, circulatory and respiratory conditions, as well as mental health challenges.
• The concurrence of heat and drought events is causing crop production losses and tree mortality. The risks to health and food production will be made more severe by the sudden food production losses exacerbated by heat-induced labor productivity losses.
  These interacting impacts will increase food prices, reduce household incomes, and lead to malnutrition and climate-related deaths, especially in tropical regions.

5. How does air mass contribute to heat waves?

• The other factors that affect the formation of heat waves are the age of the air mass and how far it has traveled.
• The north northwestern heatwaves are typically formed with air masses that come from 800-1600 km away and are around two days old.
• Heat waves over peninsular India on the other hand, arrive from the oceans, which are closer (around 200-400km) and are barely a day old. As a result, they are on average less intense.

6. Way ahead for Heat waves

• Identifying heat hot spots through appropriate tracking of meteorological data and promoting timely development and implementation of local Heat Action Plans with strategic inter-agency coordination, and a response that targets the most vulnerable groups.
• Review existing occupational health standards, labor laws, and sectoral regulations for worker safety in relation to climatic conditions.
• Policy intervention and coordination across three sectors health, water, and power are necessary.
• Promotion of traditional adaptation practices, such as staying indoors and wearing comfortable clothes.
• Popularisation of simple design features such as shaded windows, underground water storage tanks, and insulating house materials.
• Advance implementation of local Heat Action Plans, plus effective inter-agency coordination is a vital response that the government can deploy in order to protect vulnerable groups.

For Prelims & Mains

For Prelims: Heat Wave, India Meteorological Department (IMD), El Nino, Equatorial Pacific Ocean, La Nina, Malnutrition, Heat Action Plans. For Mains: 1. Examine the various adverse impacts caused by heat waves and how India should deal with them.

 

Previous Year Questions   1.What are the possible limitations of India in mitigating global warming at present and in the immediate future? (UPSC CSE 2010) 1. Appropriate alternate technologies are not sufficiently available. 2. India cannot invest huge funds in research and development. 3. Many developed countries have already set up their polluting industries in India. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer (a) India faces challenges in addressing Global Warming: Developing and underdeveloped nations lack access to advanced technologies, resulting in a scarcity of viable alternatives for combating climate change. Being a developing nation, India relies partially or entirely on developed countries for technology. Moreover, a significant portion of the annual budget in these nations is allocated to development and poverty alleviation programs, leaving limited funds for research and development of alternative technologies compared to developed nations. Analyzing the statements provided: Statements 1 and 2 hold true based on the aforementioned factors. However, Statement 3 is inaccurate as the establishment of polluting industries by developed countries within India is not feasible due to regulations governing industrial setup Mains 1.Bring out the causes for the formation of heat islands in the urban habitat of the world. (UPSC CSE Mains GS 1 2013)

 

Source: The Hindu

DEEPFAKES

1. Context

The Election Commission issued an advisory to all recognised political parties to not use deepfakes and misinformation in their social media posts and to take down any such fake audios and videos within three hours of coming to know of it.

2. What are Deepfakes

• Deepfake is a type of synthetic media in which a person in an already-existing video or image is replaced with another person. It manipulates the audio/video, which has the propensity to the device, using machine learning and artificial intelligence.
• Due to the ease with which bogus news, celebrity pornographic content, etc. get shared online, it has drawn attention.
• It makes a fake version of original or real audio-visual content by superimposing a new audio or image over an existing media file.
• In September 2019, the AI company Deeptrance discovered 15,000 deep fakes videos online-nearly tripling in just nine months. A starting 96% of them were pornographic, and 99% of them matched the faces of famous women to porn actors.
• Deepfakes can be used to damage reputation, fabricate evidence, defraud the public, and undermine trust in democratic institutions.
• All this can be achieved with fewer resources, with scale and speed, and even microtargeted to galvanize support.

3. How did Deepfakes Work?

• Deepfake content is created by using two competing AI algorithms- one is called the generator and the other is called the discriminator.
• The discriminator is tasked with determining if the fake multimedia content produced by the generator is real and manufactured.
• A generative adversarial network is created when the generator and discriminator work together (GAN). Every time the discriminator correctly recognizes the content as being fake, it gives the generator important insights into how to make the next deep fakes better.
• The first step in establishing a GAN is to identify the desired output and create a training dataset for the generator.
• Video clips can be supplied to the discriminator after the generator starts producing output at a level that is acceptable.

4. Who are the Victims?

• The first case of malicious use of deep fake was detected in pornography. According to sensity.ai, 96% of deepfakes are pornographic videos, with over 135 million views on pornographic websites alone. Deepfake pornography exclusively targets women.
• Pornographic deepfakes can threaten, intimidate, and inflict psychological harm. It reduces women to sexual objects causing emotional distress, and in some cases, leading to financial loss and collateral consequences like job loss.
• Deepfake could act as a powerful tool by a malicious nation-state to undermine public safety and create uncertainty and chaos in the target country. Deepfake can undermine trust in institutions and diplomacy.

5. Challenges with Deepfake

• Deepfake causes financial fraud, which poses problems for the entire financial system.
• In the era of the threat of fake news, it also poses a threat to the security of cyber systems and the validity of online registration.
• Deepfakes in phishing efforts would make it more challenging for people to recognize a hoax.
• In any nation, deep fakes can be used to sabotage democratic procedures like elections.
• The potential for harm to people, organizations, and societies is enormous since it can be used to generate phony pornographic videos and make politicians appear to say things they did not.
• Any genuine evidence of a crime can be easily discounted as false because the public is so distrustful due to the prevalence of deep fakes.
• Fake movies are likely to become more popular outside the world of celebrities as new technology enables unskilled people to create deep fakes with just a few images. This will feed the growth of revenge porn.
• The use of fake identities and impostor frauds in cybercrime is rising.

6. What is the Solution?

• Media literacy efforts must be enhanced to cultivate a discerning public. Media literacy for consumers is the most effective tool to combat disinformation and deep fakes.
• We also need meaningful regulations with a collaborative discussion with the technology industry, Civil society, and policymakers to develop legislative solutions to disincentivize the creation and distribution of malicious deepfakes.
• Social media platforms are taking cognizance of the deepfake issue, and almost all of them have some policy or acceptable terms of use for deepfakes.
• We also need easy-to-use and accessible technology solutions to detect deepfakes, authenticate media, and amplify authoritative sources.

For Prelims & Mains

For Prelims: Artificial Intelligence (AI), Deepfake Technology,  and AI algorithms. For Mains: 1. What are deepfakes and explain the challenges with deep-fake technology in the present technological world.

 

Source: The Hindu

 

GOODS AND SERVICE TAX (GST)

 

 

1. Context

 

Union budget should provide for a GST dispute settlement scheme, with a flat payment of 33 per cent of the disputed amount with a complete waiver of interest and penalty

 

2. What is the Goods and Services Tax (GST)?

• The Goods and Services Tax (GST) is a value-added tax levied on the supply of goods and services at each stage of the production and distribution chain. It is a comprehensive indirect tax that aims to replace multiple indirect taxes imposed by the central and state governments in India.
• GST is designed to simplify the tax structure, eliminate the cascading effect of taxes, and create a unified national market. Under the GST system, both goods and services are taxed at multiple rates based on the nature of the product or service. The tax is collected at each stage of the supply chain, and businesses are allowed to claim a credit for the taxes paid on their inputs.
• The GST system in India came into effect on July 1, 2017, replacing a complex tax structure that included central excise duty, service tax, and state-level taxes like VAT (Value Added Tax), among others. The GST Council, consisting of representatives from the central and state governments, is responsible for making decisions on various aspects of GST, including tax rates and rules.
• GST is intended to create a more transparent and efficient tax system, reduce tax evasion, and promote economic growth by fostering a seamless flow of goods and services across the country. It has a significant impact on businesses, as they need to comply with the new tax regulations and maintain detailed records of their transactions for GST filing

3.Goods and Services Tax (GST) and 101st Amendment Act, 2016

The Goods and Services Tax (GST) in India was introduced through the 101st Amendment Act of 2016. This constitutional amendment was a crucial step in the implementation of GST, which aimed to create a unified and comprehensive indirect tax system across the country.

Here are some key points related to the 101st Amendment Act and GST:

 

• The 101st Amendment Act was enacted to amend the Constitution of India to pave the way for the introduction of the Goods and Services Tax.
• It added a new article, Article 246A, which confers concurrent powers to both the central and state governments to levy and collect GST
• The amendment led to the creation of the GST Council, a constitutional body consisting of representatives from the central and state governments. The council is responsible for making recommendations on GST rates, exemptions, and other related issues
• The amendment introduced a dual GST structure, where both the central government and the state governments have the power to levy and collect GST on the supply of goods and services
• For inter-state transactions, the 101st Amendment Act provides that the central government would levy and collect the Integrated Goods and Services Tax (IGST), which would be a sum total of the central and state GST
• The amendment also included a provision for compensating states for any revenue loss they might incur due to the implementation of GST for a period of five years

The 101st Amendment Act was a critical legislative step that provided the constitutional framework for the implementation of GST in India. It addressed the need for a unified tax system, simplifying the tax structure and promoting a common market across the country. The subsequent establishment of the GST Council has played a pivotal role in the ongoing management and evolution of the GST system in India

 

4. What are the different types of Goods and Services Tax (GST)?

In India, the Goods and Services Tax (GST) is structured into different tax rates based on the nature of the goods and services. As of my last knowledge update in January 2022, the GST rates are divided into multiple slabs. It's important to note that tax rates may be subject to changes, and new amendments could have been introduced since then. As of my last update, the GST rates are as follows:

• Nil Rate:

  • Some goods and services are categorized under the nil rate, meaning they attract a 0% GST. This implies that no tax is levied on the supply of these goods or services.

• 5% Rate:

  • This is a lower rate, applicable to essential goods such as certain food items, medical supplies, and other basic necessities.

• 12% Rate:

  • Goods and services falling in this category attract a 12% GST rate. Items such as mobile phones, processed foods, and certain services fall under this slab.

• 18% Rate:

  • A higher rate of 18% is applicable to goods and services such as electronic items, capital goods, and various services.

• 28% Rate:

  • The highest GST rate of 28% is applied to luxury items, automobiles, and certain goods and services that are considered non-essential or fall into the luxury category.

• Compensation Cess:

  • In addition to the above rates, some specific goods attract a compensation cess, which is levied to compensate the states for any revenue loss during the transition to GST. This is often applied to items like tobacco and luxury cars.

• Zero Rate:

  • Certain categories of goods and services may be specified as "zero-rated," which means they are effectively taxed at 0%. This is different from the nil rate, as it allows businesses to claim input tax credit on inputs, capital goods, and input services.

• Exempt Supplies:

  • Some goods and services may be exempt from GST altogether. This means that they are not subject to any GST, and businesses cannot claim input tax credit on related inputs

 

5.Central GST (CGST), State GST (SGST), Union territory GST (UTGST) and Integrated GST (IGST)

 

 

Subject	Central GST (CGST)	State GST (SGST)	Union Territory GST (UTGST)	Integrated GST (IGST)
Levied by	Central Government	Respective State Governments	Union Territory Administrations	Central Government (on inter-state transactions)
Applicability	On intra-state supplies (within the same state)	On intra-state supplies (within the same state)	On intra-union territory supplies (within the same union territory)	On inter-state supplies (across states or union territories)
Rate Determination	Determined by the Central Government	Determined by the Respective State Government	Determined by the Union Territory Administration	IGST rate is a sum of CGST and SGST rates
Revenue Collection	Collected by the Central Government	Collected by the Respective State Government	Collected by the Union Territory Administration	Collected by the Central Government (on inter-state transactions)
Utilization of Revenue	Shared between Central and State Governments	Retained by the Respective State Government	Retained by the Union Territory Administration	Shared between Central and State Governments
Purpose	Part of the dual GST structure, meant to cover central taxes	Part of the dual GST structure, meant to cover state taxes	Applicable in union territories for intra-territory supplies	Applied to regulate and tax inter-state supplies
Input Tax Credit (ITC)	ITC available for CGST paid on inputs and services	ITC available for SGST paid on inputs and services	ITC available for UTGST paid on inputs and services	ITC available for both CGST and SGST paid on inputs
Tax Jurisdiction	Applies within a particular state	Applies within a particular state	Applies within a particular union territory	Applies to transactions across states and union territories
GSTN Portal for Filing Returns	Central GSTN portal	State-specific GSTN portals	UTGSTN portal	Integrated GSTN portal

 

 

6.What are the benefits of Goods and Services Tax (GST) in India?

 

The Goods and Services Tax (GST) in India was implemented with the aim of bringing about significant reforms in the indirect tax structure. Several benefits have been associated with the introduction of GST.

 

Here are some key advantages:

 

• GST replaced multiple indirect taxes levied by the central and state governments, simplifying the tax structure. This streamlined system reduces the complexity of compliance for businesses
• GST eliminates the cascading effect of taxes, where taxes are levied on top of other taxes. With a seamless credit mechanism, businesses can claim input tax credit on the taxes paid on their purchases, leading to a more transparent and efficient system
• GST has facilitated the creation of a common national market by harmonizing tax rates and regulations across states. This has reduced trade barriers and promoted the free flow of goods and services throughout the country
• The GST system has incorporated technology-driven processes, including electronic filing and real-time reporting, making it harder for businesses to evade taxes. This has contributed to increased tax compliance
• The input tax credit mechanism under GST benefits manufacturers, as they can claim credits for taxes paid on raw materials and input services. This has a positive impact on the cost of production and enhances the competitiveness of Indian goods in the international market
• GST brings transparency to the taxation system. The online filing of returns and the availability of transaction-level data make it easier for tax authorities to monitor and track transactions, reducing the scope for corruption
• GST has replaced a complex system of filing multiple tax returns with a more straightforward mechanism. Businesses now need to file fewer returns, reducing the compliance burden
• The implementation of GST has contributed to an improvement in the ease of doing business in India. The unified tax system has made it simpler for businesses to operate across states and has reduced the paperwork and bureaucratic hurdles associated with tax compliance
• GST has led to the harmonization of tax rates across states and union territories, minimizing the tax rate disparities that existed earlier. This creates a more predictable tax environment for businesses

7.Goods and Services Tax (GST)-Issues and Challenge

 

• Despite the intention to simplify the tax structure, the multi-tiered rate system (0%, 5%, 12%, 18%, and 28%) and the inclusion of cess on certain goods have introduced complexity. The classification of goods and services under different tax slabs can be challenging, leading to disputes and confusion
• The successful implementation of GST relies heavily on technology. Issues such as technical glitches on the GSTN (Goods and Services Tax Network) portal, especially during the initial phases, have caused difficulties for businesses in filing returns and complying with regulations
• The compliance requirements for businesses under GST, including multiple returns filing, have been perceived as burdensome. Smaller businesses, in particular, may find it challenging to adapt to the new system and comply with the various provisions
• The transition from the previous tax regime to GST posed challenges, especially for businesses in terms of understanding the new tax structure, reconfiguring accounting systems, and ensuring a smooth transition of credits from the old tax system to the GST system
• The classification of certain goods and services into specific tax slabs has been a source of contention. Ambiguities in classification have led to disputes and litigations, with businesses seeking clarity on the applicable tax rates
• The implementation of GST has increased compliance costs for businesses due to the need for sophisticated IT infrastructure, the hiring of tax professionals, and efforts to ensure accurate reporting and filing
• Challenges related to availing and matching input tax credits have been reported. Timely matching of credits and resolving discrepancies can be cumbersome, leading to concerns about the seamless flow of credit across the supply chain
• The anti-profiteering provisions were introduced to ensure that businesses pass on the benefits of reduced tax rates to consumers. However, the implementation of anti-profiteering measures has been criticized for its complexity and potential for disputes
• The periodic changes in the GST return filing system have created challenges for businesses in adapting their processes. Delays and complexities in return filing can affect working capital management

8.Goods and Services Tax Council (GST Council)

 

The Goods and Services Tax Council (GST Council) is a constitutional body in India that makes recommendations on the Goods and Services Tax (GST). It was established under the Constitution (122nd Amendment) Act, 2016, which introduced the GST in India

The GST Council consists of the following members:

• The Union Finance Minister, who is the Chairperson of the Council.
• The Union Minister of State in charge of revenue or any other Minister of State nominated by the Union Government.
• One Minister from each state, nominated by the Governor of that state.
• The Chief Secretary of each state, ex-officio.
• If the President, on the recommendation of the Council, so directs, one representative of each Union territory which has a legislature, to be nominated by the Lieutenant Governor of that Union territory.
• Three to seven members (other than Ministers) to be nominated by the Union Government, of whom at least one member shall be from the field of economics and another from the field of chartered accountancy, legal affairs or public finance

9. Way forward

 

It's important to note that the composition and structure of the GST Council may evolve over time, and there might have been changes since my last update in January 2022. To obtain the latest and most accurate information about the GST Council and its members, it is recommended to refer to official government sources or recent announcements by the relevant authorities

 

For Prelims: Economic and Social Development and Indian Polity and Governance For Mains: General Studies II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein General Studies III: Inclusive growth and issues arising from it

 

 

Previous Year Questions   1.Which of the following are true of the Goods and Services Tax (GST) introduced in India in recent times? (UGC Paper II 2020) A. It is a destination tax B. It benefits producing states more C. It benefits consuming states more D. It is a progressive taxation E. It is an umbrella tax to improve ease of doing business Choose the most appropriate answer from the options given below: A.B, D and E only B.A, C and D only C.A, D and E only D.A, C and E only Answer (D)

 

Source: Indianexpress