NATO, established on April 4, 1949, is a Western security alliance comprising 12 original members: Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States.

The alliance was formed by signing the Washington Treaty, deriving its authority from Article 51 of the United Nations Charter, which upholds the inherent right of independent states to individual or collective defense.

Central to NATO is the principle of "collective security," where an attack on any member nation is viewed as an attack on all, necessitating collective response. This principle emerged from the Cold War context of the late 1940s, amid the rivalry between the USSR and the US over ideological and economic dominance. Article 5 of the Washington Treaty, addressing collective security, was introduced to counter the perceived threat of Soviet expansionism beyond Eastern Europe. In response, the USSR formed the Warsaw Pact in 1955, uniting socialist countries as allies.

However, invoking Article 5 does not mandate uniform military action by all member states. The extent of intervention is determined by each country "as it deems necessary." To date, the only instance of Article 5 being activated was in response to the September 11, 2001 attacks on the US, leading to NATO's deployment in Afghanistan for nearly two decades

3. Who are NATO’s members today?

In addition to the initial 12 members, subsequent additions to NATO's membership include Greece and Turkey in 1952, West Germany in 1955 (later recognized as Germany), Spain in 1982, the Czech Republic, Hungary, and Poland in 1999, followed by Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, and Slovenia in 2004, Albania and Croatia in 2009, Montenegro in 2017, North Macedonia in 2020, Finland in 2023, and Sweden in 2024.

A surge of new members joined in 1999, a few years after the dissolution of the Soviet Union in 1991, prompting concerns about the alliance's potential obsolescence due to the absence of its original purpose

4.What challenges does NATO face today?

• During the 2019 commemoration of NATO's 70th anniversary, notable tensions arose among member nations.
• President Donald Trump of the United States emphasized the necessity for countries to increase their military expenditures.
• This call stemmed from a 2014 agreement among NATO members to allocate a minimum of 2 percent of their Gross Domestic Product (GDP) to defense spending, a commitment made following Russia's annexation of Crimea.
• However, only a handful of nations met this threshold, prompting criticism from President Trump who deemed it unfair, particularly to countries such as the US that were fulfilling their spending obligations. By 2023, among the 30 member countries at the time, only 11 exceeded the stipulated limit.
• One significant catalyst for increased defense spending was the Russian invasion of Ukraine the preceding year. Even traditionally neutral countries in foreign policy, such as Finland and Sweden, found appeal in the concept of collective security in response to Russia's assertive actions.
• Despite NATO's "open door" policy toward membership, the admission of new applicants requires unanimous approval from all member states. Turkey hesitated to support the applications of Sweden and Finland due to past criticisms from their politicians regarding Turkey's human rights record. Turkey also accused these nations of harboring "terrorists"

• 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

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

 

US-IRAN HOSTAGE SWAP

1. Context 

On June 28 2024, Iran held the first round of voting to elect a new President, necessitated by the death of Ebrahim Raisi in a helicopter crash in May. Since neither of the top two candidates — 69-year-old cardiac surgeon Masoud Pezeshkian, a reformist, and 58-year-old hardliner Saeed Jalili — won more than 50% of votes, they will face off in a run-off election on July 5

 

2. A Timeline of US-Iran Relations

2.1. Overthrow of Mossadeq

• In 1953, The US and British intelligence agencies orchestrate a coup to topple Iran's democratically elected Prime Minister, Mohammad Mossadeq.
• Mossadeq's push for nationalizing Iran's oil industry clashes with American capitalist interests.

2.2. Iranian Revolution

• The US-supported Shah of Iran, Mohammed Reza Pahlevi, flees the country in 1979 following widespread demonstrations and opposition.
• Ayatollah Khomeini returned from exile, and Iran declared an Islamic Republic in April 1979.

2.3. US Embassy Hostage Crisis

• Protesters seize the US embassy in Tehran in November 1979, resulting in 444 days of captivity for American hostages.
• The remaining hostages are released on the day of President Ronald Reagan's inauguration in January 1981.

2.4. Nuclear Concerns and Imposed Sanctions

• In 2002, revelations by an Iranian opposition group unveil Iran's nuclear facilities development, including uranium enrichment.
• This prompts the imposition of sanctions by the UN, US, and EU against Iran.
• President George Bush labels Iran as part of an "axis of evil" alongside Iraq and North Korea, leading to a significant depreciation of Iran's currency.

2.5. Closer Ties and the Nuclear Deal

• September 2013 witnessed Iran's moderate President Hassan Rouhani assuming office.
• In 2015, after intensive diplomatic efforts, Iran strikes a comprehensive nuclear deal known as the Joint Comprehensive Plan of Action (JCPOA) with the P5+1 group - the US, UK, France, China, Russia, and Germany.
• Under the agreement, Iran commits to curtailing its sensitive nuclear activities and granting international inspectors access, while economic sanctions are lifted.

Image Source: aljazeera

 

3. International Transfer of Sentenced Persons

The international transfer of sentenced persons is a process by which a person who has been convicted of a crime in one country is transferred to another country to serve their sentence. This can be done for several reasons, such as to allow the person to serve their sentence closer to their family and friends, or to take advantage of better prison conditions in the receiving country.

The United Nations Office on Drugs and Crime (UNODC) plays an active role in facilitating the international transfer of sentenced persons. The UNODC provides technical assistance to states that are considering transferring sentenced persons, and it also maintains a database of bilateral and multilateral agreements on the transfer of sentenced persons.

The decision of whether or not to transfer a sentenced person is ultimately up to the sentencing country. However, the UNODC has developed several guidelines that countries should consider when making this decision. These guidelines include:

1. The sentenced person should consent to the transfer.
2. The receiving country should have a prison system that is capable of adequately managing the sentenced person.
3. The receiving country should have laws that are compatible with the sentenced person's human rights.
4. The transfer should not be used to circumvent the sentencing country's laws.

4. The history behind the deal

• The tentative deal between the U.S. and Iran has been in the making for months.
• In February 2023, media outlets reported that the two countries were holding indirect talks for a possible prisoner swap.
• In March 2023, Iran's Foreign Minister Hossein Amirabdollahian told the country's State television service that an agreement for a prisoner swap has been reached with the U.S., however, dismissed his comment at the time, calling it a "cruel lie".

5. Qatar's role

• Qatar has acted as a mediator between the U.S. and Iran in the past and is likely to play a role in the implementation of the prisoner swap deal.
• The frozen funds will be transferred to the central bank in Qatar, which will regulate the account to ensure that the funds are used for humanitarian purposes.

6. Way Forward

• The deal is a positive step towards resolving the US-Iran conflict. It is a sign that both countries are willing to compromise and that they are open to dialogue.
• The deal could pave the way for further negotiations between the US and Iran on other issues, such as the nuclear program. 
• However, it is a significant development that could lead to the release of the five Iranian Americans and a thaw in relations between the US and Iran.

 

For Prelims: US- Iran relations, Iranian Revolution, Joint Comprehensive Plan of Action (JCPOA), United Nations Office on Drugs and Crime, Qatar,  For Mains:  1. Discuss the key points and implications of the recent tentative US-Iran prisoner swap deal. How does the transfer of frozen funds fit into the broader context of international relations and sanctions? (250 Words) 2. Critically analyze the challenges and ethical considerations associated with the international transfer of sentenced persons. How can the UNODC's guidelines contribute to ensuring fairness and human rights in such processes? (250 Words)

 

Previous Year Questions   1. Recently Iran has clinched a deal with six world powers to curb nuclear activities. Which one among the following is not a party to it? (UPSC CAPF 2014) A. USA           B. France         C.  Russia             D. Japan   Answer: D   2. Consider the following statements: (UPSC 2019) 1. The United Nations Convention against Corruption (UNCAC) has a 'Protocol against the Smuggling of Migrants by Land, Sea and Air. 2. The UNCAC is the ever-first legally binding global anti-corruption instrument. 3. A highlight of the United Nations Convention against Transnational Organized Crime (UNTOC) is the inclusion of a specific chapter aimed at returning assets to their rightful owners from whom they had been taken illicitly. 4. The United Nations Office on Drugs and Crime (UNODC) is mandated by its member states to assist in the implementation of both UNCAC AND UNTOC. Which of the statements given above are correct?  A. 1 and 3 only     B. 2, 3 and 4 only     C. 2 and 4 only     D. 1, 2, 3 and 4   Answer: C

 

Source: The Hindu

 

PROJECT CHEETAH

 

1. Context

Gandhi Sagar Wildlife Sanctuary in Madhya Pradesh is set to be the second home for cheetahs in India. An assessment of the carrying capacity of Kuno National Park has revealed that the animal’s current habitat in the country has exceeded its carrying capacity

2. Why was Project Cheetah launched?

• India's cheetah relocation program is perhaps among the most ambitious of its kind in the world.
• The attempt is to, over the next decade, bring in five to 10 animals every year until a self-sustaining population of about 35 is established.
• Unlike, cheetahs in South Africa and Namibia, which live in fenced reserves, India's plan is to have them grown in natural, unfenced, wild conditions.
• At Kuno, only six of the 17 adults are in the wild with the rest lodged in large, specially designed enclosures to help the animals acclimatize to Indian conditions.
• The plan is to release all the animals into the open by the yearend. The animals are radio-collared and tracked 24/7. 

3. How do cheetahs die?

• The South African study also documented the causes of mortality, where it could be established, for 293 cheetah deaths.
• It found that holding camps caused 6.5% of cheetah deaths, immobilization/ transit caused 7.5% of deaths, and another 0.7% were caused by tracking devices. This added up to almost 15%  so, one in every seven cheetah deaths was attributed to handling and management.
• Predation turned out to be the biggest killer in the study, accounting for 53.2% of cheetah mortality. Lions, leopards, hyenas, and jackals were primarily responsible. Several other wildlife including warthogs, baboons, snakes, elephants, crocodiles, vultures, zebras, and even ostriches killed cheetahs.
• It is well documented that cheetahs suffer very high cub mortality up to 90% in protected areas mainly due to predation. Consequently, nearly 80% of all cheetahs throughout their range in Africa are found living outside of protected parks and reserves.

4. Were these unfortunate cheetah deaths unexpected?

• The Cheetah Project did anticipate high mortality. The criteria for the project’s short-term success was only “50% survival of the introduced cheetah for the first year”. That would be 10 out of 20.
• As a result, the Madhya Pradesh government set a six-month deadline for readying Gandhisagar in the Chambal river valley in Mandsaur and Nimach districts for the cheetahs. There is also talk about moving a few animals from Kuno to the safety of an 80-sq-km fenced area in Rajasthan’s Mukundra Hills Tiger Reserve.
• The focus, therefore, is shifting from the project’s stated purpose that of establishing the cheetah in an open landscape as a free-roaming and self-sustaining population occupying thousands of square miles to managing the African imports as a few pocket populations in fenced-in or restricted areas.

5. How successful has Project Cheetah been so far?

• In September 2023, it will be one year since a batch of eight cheetahs from Namibia arrived in India.
• They were followed by 12 others from South Africa in February 2023. The official Cheetah Action Plan, the guiding document behind the project, observes that even half the cheetahs surviving the first year would be “an indicator of success”.
• Independent critics have, however, argued that there are some basic flaws in the project. For one, it is a mistake to have had all 20 cheetahs at Kuno as there is too little space and prey, given that the animal is a courser and needs larger fields of play.
• Some animals should have gone to the Mukundara reserve in Rajasthan. Forest officials in Madhya Pradesh have also admitted that they are stretched.
• However, the officials in the National Tiger Conservation Authority, the nodal agency of the Environment Ministry tasked with coordinating the project, say that Kuno is capable of hosting the first lot of animals and future batches will be sent to other reserves.
• The experience of raising cheetahs in fenced reserves in Africa can’t be replicated in India, say, experts, because India’s cultural values promote coexistence with beasts, and that underpinned the success of tiger, lion, and leopard conservation programs.

For Prelims: Kuno National Park, National Tiger Conservation Authority (NTCA), Project Cheetah, Chambal river valley, and South Africa.

Previous year Question

1. Recently there was a proposal to translocate some of the lions from their natural habitat in Gujarat to which one of the following sites? (UPSC 2017) A. Corbett National Park B. Kuno Palpur Wildlife Sanctuary C. Mudumalai Wildlife Sanctuary D. Sariska National Park Answer: B

Source: The Hindu