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DIRECTIONS (Qs. 71-77): Read the following passage carefully and answer the questions given below them. Certain words/ phrases have been printed in bold to help you locate them while answering some of the questions.
Since its midnight launch on July 1 last year, India's Goods andServices Tax regime has evolved significantly. There have beenserious implementation issues, but also the administrative willand flexibility to address most of these, with the Centre and Statesworking together in the GST Council. After its initial days weremarred by stuttering IT systems, the deadline for filing returnswas pushed forward till most taxpayers got a hang of the systemand the GST Network could augment its capacity. Industry hadanxieties about the multiple tax rates, ranging from zero to 28%,with a cess on demerit goods. But gradually, the number of goodsunder the 28% bracket has been brought down to 50 from around200. A unique component envisaged in India's GST regime,matching of invoices for granting tax credits, has been kept onhold for fear of adding to taxpayers' transition pains.
Despite its glitches and snarls, the new tax has taken firm root andis altering the economic landscape positively. The strongest signof this is the entry of over 4.5 million entities in the country's taxnet, many of which would have so far been part of the cashdriven,informal economy. This expansion of the tax net will alsohelp increase direct tax collections. At Sunday's GST Daycelebrations, Prime Minister Narendra Modi ruled out a single taxrate but hinted at lower rates for more items. He was reacting tocriticism about the flawed implementation of the One Nation, OneTax concept. Rhetoric aside, there is a clear buoyancy in revenueafter a wobbly initial trend. The government was eyeing a littleover Rs. 90,000 crore a month to make up for the revenues earnedunder the earlier regime and to compensate States for any lossesdue to the GST. Finance Minister Piyush Goyal is confident thatthe average monthly collections this year could touch Rs. 1,10,000crore. This surge must allay the fiscal concerns of the Centre andthe States, and nudge policy-makers towards further rationalisingthe GST structure.
If not a single rate, there is certainly room for collapsing at leasttwo of the current rates. It is also imperative that rates not betinkered with too often and pricing disputes not be a default optionunder anti-profiteering norms for industry. If cement, as a criticalinfrastructure input, must be taxed lower than 28%, then decide arate and stick to it. In its second year, the GST Council mustpursue a time-bound approach to execute plans already announcedto ease taxpayers' woes, such as an e-wallet for exporters and asimpler return form. Besides, there must be a road map to bringexcluded products - petroleum, real estate, electricity, alcohol -into the GST net. This reform still has miles to go, and thegovernment must stare down the temptation to take populist stepsahead of general elections.
Since its midnight launch on July 1 last year, India's Goods andServices Tax regime has evolved significantly. There have beenserious implementation issues, but also the administrative willand flexibility to address most of these, with the Centre and Statesworking together in the GST Council. After its initial days weremarred by stuttering IT systems, the deadline for filing returnswas pushed forward till most taxpayers got a hang of the systemand the GST Network could augment its capacity. Industry hadanxieties about the multiple tax rates, ranging from zero to 28%,with a cess on demerit goods. But gradually, the number of goodsunder the 28% bracket has been brought down to 50 from around200. A unique component envisaged in India's GST regime,matching of invoices for granting tax credits, has been kept onhold for fear of adding to taxpayers' transition pains.
Despite its glitches and snarls, the new tax has taken firm root andis altering the economic landscape positively. The strongest signof this is the entry of over 4.5 million entities in the country's taxnet, many of which would have so far been part of the cashdriven,informal economy. This expansion of the tax net will alsohelp increase direct tax collections. At Sunday's GST Daycelebrations, Prime Minister Narendra Modi ruled out a single taxrate but hinted at lower rates for more items. He was reacting tocriticism about the flawed implementation of the One Nation, OneTax concept. Rhetoric aside, there is a clear buoyancy in revenueafter a wobbly initial trend. The government was eyeing a littleover Rs. 90,000 crore a month to make up for the revenues earnedunder the earlier regime and to compensate States for any lossesdue to the GST. Finance Minister Piyush Goyal is confident thatthe average monthly collections this year could touch Rs. 1,10,000crore. This surge must allay the fiscal concerns of the Centre andthe States, and nudge policy-makers towards further rationalisingthe GST structure.
If not a single rate, there is certainly room for collapsing at leasttwo of the current rates. It is also imperative that rates not betinkered with too often and pricing disputes not be a default optionunder anti-profiteering norms for industry. If cement, as a criticalinfrastructure input, must be taxed lower than 28%, then decide arate and stick to it. In its second year, the GST Council mustpursue a time-bound approach to execute plans already announcedto ease taxpayers' woes, such as an e-wallet for exporters and asimpler return form. Besides, there must be a road map to bringexcluded products - petroleum, real estate, electricity, alcohol -into the GST net. This reform still has miles to go, and thegovernment must stare down the temptation to take populist stepsahead of general elections.
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Question : 71
Total: 100
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