UPSC Key: Himachal declared ‘fully literate’, Census 2027, and Nepal crisis

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-II: India and its neighbourhood- relations.

What’s the ongoing story: As his troops patrolled the streets of Kathmandu to restore order after two days of violent protests triggered the fall of the K P Sharma Oli government, Nepal Army chief General Ashok Raj Sigdel Wednesday appeared to have succeeded in persuading Sushila Karki, former Chief Justice of Nepal, to step in as the interim Chief Executive of the country.

Key Points to Ponder:

— Read about Nepal’s GenZ Protest.

— What are the reasons behind the anti-government “Gen Z protests” in Nepal?

— Compare the Bangladesh crisis and the Nepal crisis?

— What can be the regional implications of Nepal’s ongoing political churn?

— What can be the impact of political instability in Nepal on India-Nepal relations?

Key Takeaways:

— It is learnt that General Sigdel who held several rounds of talks with groups behind the Gen Z protests and other individuals — he met some together, others separately — drove to Karki’s house in Dhapasi around 2 am Wednesday and told her that she would be the most appropriate person to lead the interim government.

— Karki was reluctant to take up the offer but agreed 15 hours later when the Gen Z groups made a formal request.

— Kathmandu Mayor Balendra Shah, whose name as a likely contender for interim chief had been floated by a section of the Gen Z protesters, also endorsed Karki as the interim Chief Executive.

— In the several rounds of talks that he held, General Sigdel, it is learnt, sought suggestions on restoring normalcy soonest, a common minimum agenda, and the formation of an interim government as early as Thursday or Friday.

— Nepal’s first woman Chief Justice, Karki retired in June 2017 in not so happy circumstances. She was placed under suspension after the Nepali Congress registered an impeachment notice in the Parliament Secretariat but did not press it once she retired.

— This time, she will have the Nepal Army by her side which will be working with her to deliver a new Constitution within a specified timeframe – the 10-year-old Constitution is now considered defunct.

— With the country now in flames and the Oli government gone, the Nepal Army, for the first time, has stepped in, following a silent consensus among political parties and the Gen Z groups, with twin objectives: first, put out the fire, stop plunder and anarchy, and, second, bring diverse political forces to the dialogue table to decide the polity.

— In 2006, as Nepal embarked on a radical political journey to eventually become a secular republic, the Royal Nepal Army became the Nepal Army. But it remained apolitical, accepting political and systemic changes and cooperating with the new political system – in 2008, its supreme commander, the King, was dethroned and monarchy abolished. It acted strongly whenever there were moves to inject party politics into the institution.

From the Front Page “Anger, remittance economy, tourism, I-T: Why social media ban was trigger”

— Anti-corruption protests in Nepal were sparked by a ban on 26 social media apps, before spiralling into a wider anti-corruption movement that ended up toppling the government after the mostly leaderless protests spilled over into Kathmandu’s streets.

— Social media may have been the immediate trigger for the unrest, but in Nepal, apps such as Facebook and Whatsapp played an increasingly outsized role for multiple reasons. It gave people, especially youngsters, a platform to vent anger against the moribund economic prospects and the general lack of opportunities. More importantly, these were vital communication channels for the Nepalese people to keep in touch with family members increasingly working abroad, in the Gulf Cooperation Council (GCC) countries and Malaysia, apart from India.

— These were also a channel for routing some of the remittance money, a big source of Nepal’s national income. The collapse of the domestic economy, the bristling anger over corruption, unemployment, and the fact that a lot of Nepalese politicians had become really rich and their children were posting snapshots of their lavish lives on social media – all these reasons could have played a part. 

— Young activists were picking these pictures and sharing them on social media, which led to these apps becoming even more relevant for young Nepalese. And finally, a rumour that the two largest parties are getting together to form a grand coalition because leaders of both the parties were under investigation for corruption by the previous government, stoked the simmering unrest. This also played out on social media. The ban was read as a signal to brush these under the carpet, triggering an uproar.

— Nepal has over eight per cent of its population living and working overseas and the remittances that they send back to that country amounts to over 33 per cent of Nepal’s Gross Domestic Product, the fourth highest in the world after Tonga, Tajikistan and Lebanon. To that extent, apps such as Facebook and WhatsApp were vital for families to keep in touch with their relatives abroad. And the reason why they were working abroad was because of dwindling opportunities back home, all of which contributed to stoking unrest. The social media ban was akin to rubbing the proverbial salt in festering wounds.

Do You Know:

— Amid a deepening political crisis in Nepal, following a sharp escalation in the anti-government “Gen Z protests” a day after 20 youths were killed in police action, Prime Minister K P Sharma Oli resigned on Tuesday. 

— The country’s biggest slow-burning crisis centers on jobs. Getting one is a herculean task in Nepal, a mountainous nation of 30 million sandwiched between India and China. According to the Nepal Living Standard Survey published by the National Statistics Office in 2024, the unemployment rate was 12.6 per cent, more than a point higher than it was five years earlier.

— Those figures tend to understate the severity of the problem. They represent only participants in the formal economy, leaving out the majority of Nepalis, who work without officially reported jobs, mostly in farming. And unemployment is heavily concentrated among younger adults who hold out hope for real jobs.

Other Important Articles Covering the same topic:

📍Sushila Karki: Jurist with anti-graft reputation, Nepal’s first woman CJ — and now potentially its first woman PM

📍Jobs to inequality to corruption: What lit the fuse in Nepal

📍Listen to Gen Z next door

Previous year UPSC Prelims Question Covering similar theme:

(1) Consider the following pairs: (UPSC CSE 2016)

	Community sometimes mentioned in the news	In the affairs of
1.	Kurd	Bangladesh
2.	Madhesi	Nepal
3.	Rohingya	Myanmar

Which of the pairs given above is/are correctly matched?

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 3 only

Pan-India SIR: Focus on matching rolls to last revision, EC tells CEOs

Syllabus:

Preliminary Examination: Current events of national importance, Indian Polity and Governance-Constitution. 

Mains Examination: General Studies-II: Salient features of the Representation of People’s Act, Constitution of India — features, significant provisions and basic structure. 

What’s the ongoing story: Over three-fourth of Bihar’s 7.89 crore existing electors were traced, directly or indirectly, to the state’s 2003 electoral roll during the ongoing Special Intensive Revision (SIR) — a model that the Election Commission (EC) now wants replicated nationwide, The Indian Express has learnt.

Key Points to Ponder:

— What is the Special Intensive Revision?

— What is the purpose of conducting the SIR?

— What is the constitutional backing for conducting SIR?

— What are the concerns related to SIR?

— How is SIR different from the National Register of Citizens (NRC)?

— Read about the Election Commission of India, its powers and functions. 

Key Takeaways:

— At a conference with Chief Electoral Officers (CEOs) on Wednesday, the Commission, comprising Chief Election Commissioner Gyanesh Kumar and Election Commissioners Sukhbir Singh Sandhu and Vivek Joshi, asked states and Union Territories to focus on matching their current electoral rolls with those prepared during the last intensive revision.

— The move, aimed at reducing the number of voters who will be required to furnish proof of eligibility during the upcoming SIR, builds on Bihar’s example, where about 52% of existing electors were found on the 2003 rolls and another 25% were identified, albeit indirectly, as children or relatives of those voters.

— While Bihar’s final roll is scheduled to be published on September 30, it is learnt that the EC is yet to take a call on the timing of the pan-India SIR.

— In a statement issued late evening, the EC said: “The Commission assessed the preparedness of offices of the CEOs of all States/ UTs for the nationwide SIR exercise. A presentation on the strategies, constraints and best practices adopted was made by the Bihar CEO so that the CEOs of the rest of the country learn from their experiences.”

— The CEOs had also been asked to give suggestions on additional documents that could be submitted by electors, apart from the 11 listed by the EC in its June 24 order for Bihar. 

— It is learnt that most CEOs replied “nil” when asked for these suggestions, while some suggested Aadhaar and the EC’s own Electors Photo Identity Card (EPIC). In some cases, like Assam, state-specific IDs were suggested. The EC had chosen not to include Aadhaar, EPIC and ration card in its June 24 order and had stuck to the decision even after being asked by the Supreme Court to reconsider. However, the court this week ordered the EC to accept Aadhaar for the purpose of the Bihar SIR.

Do You Know:

— Article 324(1) of the Constitution gives the ECI the power of “superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of” elections to Parliament and state legislatures.

— Under Section 21(3) of The Representation of the People Act, 1950, the ECI “may at any time…  direct a special revision of the electoral roll for any constituency or part of a constituency in such manner as it may think fit”.

— The Registration of Electors’ Rules, 1960, says the revision of rolls can be carried out “either intensively or summarily or partly intensively and partly summarily, as the [ECI] may direct”. In an intensive revision, the electoral roll is prepared afresh; in a summary revision, the roll is amended.

— Special summary revisions take place every year, and the electoral roll is updated before each Lok Sabha and state Assembly election. Intensive revisions have been carried out in 1952-56, 1957, 1961, 1965, 1966, 1983-84, 1987-89, 1992, 1993, 1995, 2002, 2003 and 2004.

Other Important Articles Covering the same topic:

📍No citizenship proof, but Supreme Court raises bar for exclusion by Election Commission

Previous year UPSC Prelims Question Covering similar theme:

(2) Consider the following statements: (UPSC CSE 2017)

1. The Election Commission of India is a five-member body.

2. The Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.

3. Election Commission resolves the disputes relating to splits/mergers of recognised political parties.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 3 only

Previous year UPSC Mains Question Covering similar theme:

To enhance the quality of democracy in India the Election Commission of India has proposed electoral reforms in 2016. What are the suggested reforms and how far are they significant to make democracy successful? (UPSC CSE 2017)

 

EXPLAINED 

Himachal declared ‘fully literate’: what does this mean?

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

What’s the ongoing story: Earlier this week, Himachal Pradesh was declared to be a ‘fully literate’ state, becoming the fifth such state/Union Territory in India after Goa, Ladakh, Mizoram, and Tripura. None of these, however, boast 100% literacy. Himachal claims to have a literacy rate of 99.3%, Goa 99.72%, Mizoram 98.2%, Tripura 95.6%, and Ladakh 97%. 

Key Points to Ponder:

— What does it mean to be ‘fully literate’?

— What are other adult literacy schemes?

— What is the status of literacy in India?

— What is the National Literacy Mission (NLM)?

— What is the New Education Policy?

— What is the ULLAS programme?.

— How effective are educational programmes in India? What key challenges hinder their implementation and outcomes?

Key Takeaways:

— The Ministry of Education defines literacy as “the ability to read, write, and compute with comprehension i.e to identify, understand, interpret and create, along with critical life skills such as digital literacy, financial literacy etc.” It defines ‘full literacy’ as “achieving 95% literacy in a State/UT”.

— The Ministry communicated these definitions to states/UTs last August. It felt the need to define these terms for ULLAS (Understanding Lifelong Learning for All in Society), a literacy programme for people over 15 who may not have attended school.

— The ULLAS program was launched in 2022 with the aim of achieving 100% literacy by 2030, which is one the 17 Sustainable Development Goals of the United Nations. The program is also in line with the National Education Policy (NEP) 2020 which calls for adult education initiatives to achieve 100% literacy.

— Under the ULLAS program, adult learners are taught basic reading, writing, and math (arithmetic like addition, subtraction, multiplication, and division) that a child in school would learn up to class 3. They are also taught how to read and measure time, make sense of calendars, use currency notes, write cheques, and safely make digital transactions.

— This training is provided either through a mobile app or offline, by students or community volunteers. After that, the Functional Literacy Numeracy Assessment Test (FLNAT), a 150-mark reading, writing and numeracy test, is administered in a person’s chosen language. On passing the test, the learner is certified by the National Institute of Open Schooling (NIOS) as having acquired foundational literacy and numeracy.

— The key to some states/UTs receiving the ‘fully literate’ tag is that the adults they identified as not being literate have cleared the FLNAT. This relies on their prior estimates of the number of people who are not literate.

— In States/UTs where literacy levels (as per the 2011 Census) were already high, or where the population is relatively small, the process of identifying people who are not literate, imparting training, and making them clear the FLNAT works faster.

— As per the Census of 2011, Goa had a literacy rate of 88.7%, Himachal Pradesh 82.8%, Mizoram 91.3%, and Tripura 87.2% — well above the country average of 74%.

— For the 2011 Census, any person aged seven and above who can read and write with understanding in any language was considered literate. Among women, the literacy rate was 64.6%, while for men it was 80.9%. The Census also measured adult literacy — for those age 15 and above — for which the national figure was 69.3%.

Do You Know:

— ULLAS is the latest in a set of government initiatives to promote adult literacy from the 1950s onwards.

— In the 1960s-70s, the Centre and several states ran programs targeting literacy among — farmers and women.

— The National Adult Education Programme was launched in 1978 to eliminate illiteracy in the 15-35 age group.

— The National Literacy Mission, which ran from 1988 to 2009, also targeted this age bracket.

— In 2009, the UPA government launched the ‘Saakshar Bharat’ (Literate India) scheme which it ran until 2018. Meant for people aged 15 and above, it also focused on functional literacy and numeracy.

Other Important Articles Covering the same topic:

📍UPSC Issue at a Glance | India’s literacy drive and its fully literate states— All you need to know for UPSC Prelims and Mains

Previous year UPSC Prelims Question Covering similar theme:

(3) Which of the following provisions of the Constitution does India have a bearing on Education? (UPSC CSE 2012)

1. Directive Principles of State Policy

2. Rural and Urban Local Bodies

3. Fifth Schedule

4. Sixth Schedule

5. Seventh Schedule

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 3, 4 and 5 only

(c) 1, 2 and 5 only

(d) 1, 2, 3, 4 and 5

How geotagging of buildings will work during Census, how it will help 

Syllabus:

Preliminary Examination: Indian Polity and Governance-Constitution, Public Policy, Rights Issues, etc.

Mains Examination: General Studies-I, II: Population and associated issues, Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

What’s the ongoing story: India’s next Census, which will be conducted in 2027 after a delay of six years, will include many firsts – it will be the first Census to be conducted digitally; for the first time, people will have the option of self-enumeration; and members of individual castes will be counted for the first time since 1931.

Key Points to Ponder:

— What is the census and its significance?

— Know about the history of the census in India.

— How is the census conducted in India?

— What is geotagging?

— What’s new in Census 2027?

— How will the geotagging of buildings during the Census help?

— Read about the Office of Registrar General of India.

— What is the difference between Census, caste census and SECC?

Key Takeaways:

— All buildings across India will be geotagged – never before has such an exercise been undertaken as part of India’s decennial population Census. 

— Geotagging is the process of marking the latitude-longitude coordinates of buildings on a Geographic Information System (GIS) map. GIS is a computer system that captures, checks, and displays data on specific positions on the surface of the Earth.

— Latitudes and longitudes are imaginary lines that are used to determine the location of a place on the globe. Latitudes (or ‘parallels’) are horizontal lines that indicate the north-south distance of a place from the equator; longitudes (or ‘meridians’) are vertical north-south lines that determine the east-west distance of a place from the prime meridian, which passes through Greenwich, UK.

— Geotagging provides a building with a precise and unique locational identity that can be pinpointed with accuracy.

— Census 2011 defined a ‘Census House’ as “a building or part of a building used or recognized as a separate unit because of having a separate main entrance from the road or common courtyard or staircase etc”.

— A Census House may be occupied or vacant; it may be used for residential or non-residential purposes, or for both.

— Geotagging will be done during the House listing Operations (HLO), the first phase of the Census, which is scheduled for April-September 2026. (The second phase is of Population Enumeration (PE), during which demographic, socioeconomic, and cultural data of individuals will be collected.)

— According to sources, geotagging will help to accurately estimate the number of Census houses and households requiring enumeration, thus improving workload management across field functionaries.

— In earlier Censuses, notional sketches were drawn by hand as part of the houselisting exercise. However, the government has been using geotags on a smaller scale – for example, assets such as houses constructed under the Pradhan Mantri Awaas Yojana-Gramin and PMAY-Urban are geotagged.

Do You Know:

— The first non-synchronous, nationwide census was in 1872. This census involved counting individuals across most parts of the country; however, it did not include all territories under British control. It was non-synchronous census. 

— The first synchronous census of India was conducted in 1881. It was conducted by W.C. Plowden.

— The Census 2027 will be the 16th decadal Census overall and the eighth since Independence. During the exercise, village, town and ward-level population data on various parameters are collected. This includes data on housing conditions, amenities and assets, demography, religion, Scheduled Castes and Scheduled Tribes, language, literacy and education, economic activity, migration, and fertility.

Other Important Articles Covering the same topic:

📍Knowledge Nugget | Census 2027 and Registrar General of India: A must-know for UPSC Exam 

📍UPSC Issue at a Glance | Census : 4 Key Questions You Must Know for Prelims and Mains

📍The critical importance of the next Census for India’s economy

Previous year UPSC Prelims Question Covering similar theme:

(4) Consider the following statements with reference to the census in India:

1. The first All India Census was attempted in 1872.

2. From 1881, decennial censuses became a regular feature.

Which of the statements given above is/are correct? (UPSC-CDS(II) – 2024)

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Israel’s attack on Doha

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-II: Effect of policies and politics of developed and developing countries on India’s interests.

What’s the ongoing story: Israeli jets struck a target in Doha on Tuesday, making Qatar the seventh country Israel has bombed since October 2023.

Key Points to Ponder:

— Read about the Israel-Hamas conflict. 

— Know about the ceasefire talks related to the Israel-Hamas. 

— What role has Qatar traditionally played as a mediator in West Asian conflicts?

— How might the Israeli strike affect Qatar’s reputation as a neutral mediator?

— What are the implications of the Israeli strike on Doha for the ceasefire process in Gaza?

— Know about India’s relations with Qatar and Israel.

— Map work: Locate Qatar, Israel and other places in news related to Israel-Hamas conflict.

Key Takeaways:

— In a public statement, Israel said it had targeted a Hamas delegation that Qatar was hosting as part of ongoing negotiations with Israel and the United States.

— This is the first time that Israel has attacked a Gulf Arab state directly, and one that is a US ally and hosts the largest American military base in the Middle East (Al-Udeid).

— Prime Minister Benjamin Netanyahu justified the airstrike as retaliation for a shooting in Jerusalem on September 8, and as part of Israel’s operation to eliminate Hamas after the terrorist attacks of October 7, 2023.

— However, the targets, location, and timing of the strike, and the risk involved in the unprecedented attack on a US ally, point to a larger Israeli rationale. Israel has been violently disrupting US negotiations with third parties that it is hostile to, by targeting the negotiators.

— It attacked Iran in June — when the US was in the midst of nuclear negotiations with the Tehran regime — and rationalised the attack as strengthening the American bargaining position by weakening Iran’s. US-Iran negotiations are yet to resume.

— The Doha strike also confirms Netanyahu’s strong disinclination for a ceasefire in Gaza, even one imposed by the US. An acceptance by Hamas of the US proposal this week would in theory enable a second ceasefire this year.

— The first three-phase ceasefire sealed in January was breached by Israel in March after it alleged Hamas had deviated from the terms of the agreement, and launched a fresh offensive to take over larger parts of the Gaza Strip.

— Qatar’s focus on its mediating role is important — Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani had met with the Hamas delegation the day before the Israeli attack to press for a ceasefire.

— Qatar hosts the Hamas leadership not only out of its desire to be a successful regional mediator, but also at the behest of Israel and the US. The first Trump administration had used Qatar’s good offices to negotiate with the Taliban the US withdrawal from Afghanistan.

— More than disrupting the negotiations for a ceasefire in Gaza, the Israeli airstrike undermines Qatar’s longstanding reputation as a secure and discreet facilitator of difficult and sensitive negotiations. This reputation has been key to Qatar’s international buy-in as Doha has risked its ties with other Gulf Arab states in the past to maintain critical relationships across regional faultlines (such as the Iranian government, the Muslim Brotherhood in Egypt, or Hamas in Gaza).

— Qatar has “reserved its right to respond” to Israel’s attacks. Most Arab and other states have condemned the Israeli action, and Saudi Arabia has pledged to place “all capabilities” at Qatar’s disposal to respond to the “brutal Israeli aggression”.

— But the scale of any Qatari response, if it occurs at all, will be limited or symbolic. Qatar is well integrated into the US military system in the Middle East, and has invested considerable resources in cultivating greater confidence within the Trump Administration (such as gifting the President a Boeing 747).

— However, Israel’s confidence and capabilities to undertake such an attack would reinforce the two-year-old learning for Qatar and other regional Arab states that Israel now has disproportionate power and agency to unilaterally reshape the region.

Previous year UPSC Prelims Question Covering similar theme:

(5) The term “two-state solution” is sometimes mentioned in the news in the context of the affairs of (UPSC CSE 2018)

(a) China

(b) Israel

(c) Iraq

(d) Yemen

Previous year UPSC Mains Question Covering similar theme:

“India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss. (UPSC CSE 2018)

 

THE IDEAS PAGE

The GST template 

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-II, III:  Powers, functions and responsibilities of various Constitutional Bodies.  Indian Economy and issues relating to planning, mobilisation, of resources, growth, development, and employment.

What’s the ongoing story: N.K. Singh writes- “India’s quest for tax simplification has been an abiding one. For long, the average person regarded India’s taxation structure as draconian, with suboptimal outcomes both in revenues and compliance. Direct taxes saw substantial progress, culminating in the New Income Tax Code that simplified procedures and eased compliance.” 

Key Points to Ponder:

— What is Goods and Services Tax (GST), and how does it work?

— What is the purpose of introducing GST? How is it an example of cooperative federalism?

— What is the objective of introducing next-generation reforms?

— What are the key GST 2.0’s institutional reforms?

— What are the various tax slabs before and after the reform?

— What is the tax system in India?

— What is the role and function of the GST council?

— How are decisions taken in the GST council?

— What do you understand about sin goods?

Key Takeaways:

— “On indirect taxes, the story was more difficult. Excise remained complex and opaque, with multiple rates compounded by India’s federal structure. The idea of a Goods and Services Tax was first conceived in 1985 by V P Singh, then Finance Minister. MODVAT (Modified Value Added Tax) was introduced in 1986, but the reform remained unfinished.”

— “The 1991 balance of payments crisis revived the debate, as conditionalities under the World Bank’s structural adjustment loan and the IMF’s credit arrangement committed India to a broad-based value-added tax. Yet the reforms were partial, and progress remained slow. 

— “The creation of the GST Council under the Union finance minister, with all state finance ministers as members, was unprecedented. Few federal systems in the world offer such pooled sovereignty, where both Parliament and state assemblies circumscribe fiscal powers for the common good. It was no easy decision for legislatures to surrender their autonomy over excise, but consensus carried the day.”

— “When GST was launched in July 2017, it subsumed 17 taxes and 13 cesses into a single system. Gains were immediate. The taxpayer base expanded from 66 lakh in 2017 to over 1.5 crore today. Collections rose sharply, with the tax base itself increasing from Rs 45 lakh crore to Rs 173 lakh crore over the past decade at a CAGR of 14.4 per cent. Successive Council meetings oversaw revisions, widened coverage and improved compliance.”

— “The latest reforms, approved unanimously by the GST Council in September 2025, mark the most far-reaching recalibration since the tax’s inception. Four slabs now compressed to two: 5 per cent and 18 per cent, with a higher rate of 40 per cent for luxury and sin goods. Life and health insurance premiums were exempted. This was more than cosmetic. It addressed the most persistent criticism that complexity weakened compliance and confused both consumers and businesses. Fewer rates mean easier classification, fewer disputes, and smoother administration. For citizens, essentials become cheaper; for businesses, predictability improves; for policymakers, the reform marks a decisive shift from incremental tinkering to bold consolidation.”

— “There are three reasons why these changes are transformative.First, the consensus of all state finance ministers is historic. No other country has created an institution comparable to the GST Council, much less used it to deliver far-reaching changes. Jean-Claude Trichet once remarked that India’s federal entity was unique, and that Europe, in its quest to matter globally, must pursue pooled sovereignty as its path forward.”

— “Second, concerns about revenue loss are overstated. The Revenue Secretary estimated a short-term hit of about Rs 48,000 crore based on 2023-24 consumption, but actual outcomes may vary. Experience shows simpler structures enhance compliance and buoyancy. As consumption rises, revenues recover. The doubling of GST collections in five years proves that buoyancy, driven by growth and trust, matters more than rate design.”

— “Third, GST 2.0 has the potential to trigger a virtuous cycle. It strengthens India’s image as a predictable and reform-oriented economy. This reform signals that India is willing to listen to stakeholders and act decisively. If the Centre and states can cooperate on taxation, why not extend this spirit to other areas of economic reform? Uniform rules, transparency and collaborative approaches to land and labour could complete the unfinished agenda.”

— “The finance minister has acknowledged that unfinished tasks remain. These include ensuring that benefits reach the common consumer, small and medium enterprises, and industry more broadly. One important extension could be allocating a share of GST proceeds to urban local bodies. With India’s rapid urbanisation, empowering municipalities with assured resources would align with the federal spirit and strengthen governance at the grassroots.”

Do You Know:

— The President set up the GST Council as a joint forum of the Centre and the states, under Article 279A (1) of the amended Constitution. It said that members of the Council include the Union Finance Minister (chairperson), and the Union Minister of State (Finance) from the Centre. Each state can nominate a minister in charge, of finance or taxation or any other minister, as a member.

— According to Article 279 A, the council is meant to “make recommendations to the Union and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws”.

Other Important Articles Covering the same topic:

📍Explained: What is the GST Council, and what does it do?

📍A nudge to business 

Previous year UPSC Prelims Question Covering similar theme:

(6) What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? (UPSC CSE 2017)

1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.

2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.

3. It will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Previous year UPSC Mains Question Covering similar theme:

Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017. (UPSC CSE 2019)

ALSO IN NEWS
To curb ‘fake news’, panel backs mandatory fact-check mechanism	A parliamentary panel is learnt to be in favour of recommending amendments to penal provisions, including increase in fines, and fixing accountability of editorial content to curb the spread of ‘fake news’. The Standing Committee on Communications and Information Technology, headed by BJP MP Nishikant Dubey, is said to be in favour of recommending the mandatory presence of a fact-checking mechanism and internal ombudsman in all media organisations. Taking note of the unchecked spread of misinformation in general and ‘fake news’ in particular, which pose a serious threat to public order and democratic processes, the panel feels there’s need for a multi-faceted approach and combined efforts from individuals, governments, media (print, electronic, digital), and social media platforms.
Month-long ‘GST Bachat Utsav’ from September 22	The Union government plans to observe a month-long ‘GST Bachat Utsav’ beginning September 22, the day from which the rate cuts will kick in. According to sources, the decision was taken on September 8 during a meeting chaired by Cabinet Secretary T V Somanathan. It was also decided that a 100-day outreach programme will be launched to spread awareness about the next generation reforms, recommended by the GST Council in its 56th meeting on September 3.
No public consultations for mining of critical and atomic minerals: Govt	The Ministry of Environment, Forest and Climate Change will now exempt mining proposals of atomic, critical, and strategic minerals from the ambit of public consultations in view of “national defence and security requirements and strategic considerations”, it said in a new office memorandum (OM). The exemption has been granted in response to a recent request made by the Ministry of Defence and the Department of Atomic Energy (DAE). However, such projects will be subjected to a “comprehensive appraisal” by concerned sectoral expert appraisal committees, and they will be appraised at the central level, irrespective of the project size, the order stated. The ministry cited provisions of the Environment Impact Assessment (EIA) Notification, 2006, and amendments, which exempt projects related to national defence and security, as well as other strategic considerations, from public consultation to grant the latest relaxation.

 

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