GOODS AND SERVICE 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
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:
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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.
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5% Rate:
- This is a lower rate, applicable to essential goods such as certain food items, medical supplies, and other basic necessities.
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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.
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18% Rate:
- A higher rate of 18% is applicable to goods and services such as electronic items, capital goods, and various services.
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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.
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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.
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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.
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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
| 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 |
- 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
- 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
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
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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 |
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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)
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AIR QUALITY INDEX (AQI)
1. Context

2. The Air Quality Index (AQI)
The AQI is a colour-coded index launched under the Swachh Bharat campaign to simplify the understanding of pollution levels. It helps convey the condition of the air and guides appropriate measures based on the severity of pollution. The AQI consists of six categories, each with a corresponding colour code: 'Good' (0-50), 'Satisfactory' (51-100), 'Moderately Polluted' (101-200), 'Poor' (201-300), 'Very Poor' (301-400) and 'Severe' (401-500).
3. Calculation of AQI
- To calculate the AQI, a technical study was conducted by an expert group, including medical professionals, air quality experts, and academics.
- Various pollutants, such as PM10, PM2.5, Nitrogen Dioxide, Ozone, Carbon, and others, are measured.
- Each pollutant is assigned a weight based on its impact on human health.
- The composite air quality index is determined by combining these weights, simplifying multiple data points into a single number and colour to represent overall air quality.
- Monitoring stations across the country assess these pollutant levels.
4. Impact of Pollutants on Health
- Among the most harmful pollutants are fine particulate matter, such as PM2.5, which has a diameter smaller than 2.5 micrometres.
- PM2.5 particles can easily enter the circulatory system, bypassing the nose and throat.
- They are associated with respiratory problems and reduced visibility, posing health risks such as asthma, heart attacks, bronchitis, and other respiratory issues.
5. Influence on Government Policy
- Governments, especially in areas like Delhi, use the AQI to announce measures to combat air pollution.
- When the AQI in the National Capital Region (NCR) reaches the 'severe' category, Stage 4 of the Graded Response Action Plan (GRAP) is implemented.
- GRAP is designed for emergency measures to prevent further deterioration of air quality.
- Specific actions may include prohibiting the use of non-BS-VI-compliant diesel four-wheelers and restricting the entry of trucks into the city while allowing petrol cars to continue operating as usual.
6. Conclusion
The Air Quality Index is an essential tool that simplifies the understanding of air pollution, assesses its health impacts, and influences government policies and actions to combat deteriorating air quality. As Mumbai braces for worsening air quality, the AQI will continue to be a critical resource for both the government and the public.
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For Prelims: Air Pollution, Air Quality Index, PM 2.5, PM 10, BS-VI Vehicles, Graded Response Action Plan, National Capital Region, Nitrogen Dioxide, Ozone, Carbon,
For Mains:
1. With the onset of worsening air quality in Mumbai, discuss the importance of the AQI as a critical resource for both the government and the public. How can the AQI assist in addressing air pollution-related challenges in the upcoming winter months? (250 Words)
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Previous Year Questions 1. In the cities of our country, which among the following atmospheric gases are normally considered in calculating the value of Air Quality Index? (UPSC 2016)
Select the correct answer using the code given below: A. 1, 2 and 3 only B. 2, 3 and 4 only C. 1, 4 and 5 only D. 1, 2, 3, 4 and 5 Answer: B 2. Which of the following are the reasons/factors for exposure to benzene pollution? (UPSC 2020)
Select the correct answer using the code given below: A. 1, 2 and 3 only B. 2 and 4 only C. 1, 3 and 4 only D. 1, 2, 3, 4 and 5 Answer: A 3. What is the ‘Greenhouse Gas Protocol’? (UPSC 2016) (a) It is an international accounting tool for government and business leaders to understand, quantify and manage greenhouse gas emissions (b) It is an initiative of the United Nations to offer financial incentives to developing countries to reduce greenhouse gas emissions and to adopt eco-friendly technologies. (c) It is an inter-governmental agreement ratified by all the member countries of the United Nations to reduce greenhouse gas emissions to specified levels by the year 2022 (d) It is one of the multilateral REDD+ initiatives hosted by the World Bank Answer: A 4. Photochemical smog is a resultant of the reaction among (UPSC 2013) (a) NO2, O3 and peroxyacetyl nitrate in the presence of sunlight (b) CO, O2 and peroxyacetyl nitrate in the presence of sunlight (c) CO, CO2 and NO2 at low temperature (d) high concentration of NO2 O3 and CO in the evening
Answer: A
5. Acid rain is caused by the pollution of the environment (UPSC 2013, 2022) (a) Carbon Dioxide and Nitrogen (b) Carbon Monoxide and Carbon Dioxide (c) Ozone and Carbon Dioxide (d) Nitrous Oxide and Sulphur Dioxide Answer: D
6. Biological Oxygen Demand (BOD) is a standard criterion for (UPSC 2017) (a) Measuring oxygen level in blood (b) Computing oxygen levels in forest ecosystems (c) Pollution assay in aquatic ecosystem (d) Assessing oxygen levels in high-altitude regions Answer: C 7. The Ministry of Environment, Forest and Climate Change recently published the draft Environment Impact Assessment (EIA) Notification, in 2020. Which of the following statements is correct about EIA? (Punjab Civil Service 2020)
1. It predicts the effect of a proposed industrial/infrastructural project on the environment.
2. It prevents the proposed activity/project from being approved without proper oversight or taking adverse consequences into account.
3. It compares various alternatives for a project and seeks to identify the one which represents the best combination of economic and environmental costs and benefits.
4. As per the new notification, Coal and non-Coal mineral prospecting and solar photovoltaic projects do not need prior environmental clearance.
Select the correct answer using the code given below:
A. Only 1 and 2
B. Only 2, 3 and 4
C. Only 1, 2 and 3
D. Only 1, 2 and 4
Answer: D
8. Headquarters of the World Meteorological Organization is located in (NDA 2017)
A. Washington B. Geneva C. Moscow D. London
Answer: B
9. With reference to the 'Global Climate Change Alliance', which of the following statements is/are correct? (UPSC 2017)
1. It is an initiative of the European Union.
2. It provides technical and financial support to targeted developing countries to integrate climate change into their development policies and budgets.
3. It is coordinated by World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD)
Select the correct answer using the code given below:
A. 1 and 2 only B. 3 only C. 2 and 3 only D. 1, 2 and 3
Answer: A
10. The IPCC is the United Nations body for assessing the science related to climate change. IPCC stands for: (RRB NTPC CBT 2 2022)
A. Intergovernmental Provision on Climate Change
B. International Panel on Climate Change
C. International Provision on Climate Change
D. Intergovernmental Panel on Climate Change
Answer: D
11. Comprehension (SSC CHSL 2020)
Direction: In the following passage some words have been deleted. Fill in the blanks with the help of the alternatives given. Select the most appropriate option for each blank.
Forest fire always (1) ______ by one of two reasons-naturally caused or human-caused. Natural fire is generally (2) ______ by lightning, with a very small percentage (3) ______ by spontaneous combustion of dry fuel such as sawdust and leaves. (4) ______, human-caused fire can happen (5) ______ any number of reasons.
Select the most appropriate option for blank No. 1.
A. takes up B. happens C. causes D. creates
Answer: B
12. Which of the following statements best describes the term 'Social Cost of Carbon'? It is a measure, in monetary value, of the (UPSC 2020)
A. long-term damage done by a tonne of CO2 emission in a given year.
B. requirement of fossil fuels for a country to provide goods and services to its citizens, based on the burning of those fuels.
C. efforts put in by a climate refugee to adapt to live in a new place.
D. contribution of an individual person to the carbon footprint on the planet Earth.
Answer: A
13. The increasing amount of carbon dioxide in the air is slowly raising the temperature of the atmosphere, because it absorbs (UPSC 2012)
A. the water vapour of the air and retains its heat
B. the ultraviolet part of the solar radiation
C. all the solar radiations
D. the infrared part of the solar radiation
Answer: D
14. As per the World Health Organisation (WHO) recommendation of a balanced diet, to avoid unhealthy weight gain, total fat should NOT exceed _______ of total energy intake. (UPSSSC Mandi Inspector 2019)
A. 20% B. 30% C. 10% D. 40%
Answer: B
15. What is the role of ultraviolet (UV) radiation in the water purification systems? (UPSC 2012)
1. It inactivates/kills the harmful microorganisms in water.
2. It removes all the undesirable odours from the water.
3. It quickens the sedimentation of solid particles, removes turbidity and improves the clarity of water.
Which of the statements given above is/are correct?
A. 1 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: A
16. Which of the following ultraviolet rays is more dangerous? (UPTET 2017)
A. UV-A B. UV-B C. UV-C D. None of the above
Answer: C
17. Consider the following statements: (UPSC 2019)
1. Agricultural soils release nitrogen oxides into environment.
2. Cattle release ammonia into environment.
3. Poultry industry releases reactive nitrogen compounds into environment.
Which of the statements given above is/are correct?
A. 1 and 3 only B. 2 and 3 only C. 2 only D. 1, 2 and 3
Answer: D
18. Which of the following is a VOC? (MP Vyapam 2022)
A. Toulene B. Water C. Carbon dioxide D. Carbon monoxide
Answer: A
19. Volatile Organic Compounds (VOCs) are of great concern because (UGC NET Environmental Science 2020)
A. Once such compounds are in the vapour state, they are difficult to control in the environment.
B. Most of them are ozone depleting substances
C. They contribute to a general increase in reactive hydrocarbons in the atmosphere.
D. They are less soluble in water.
Answer: C
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Source: The Indian Express
PMLA
1. Context
2. About PMLA
- The Anti-money laundering legislation was passed by the National Democratic Alliance government in 2002 and came into force on July 1, 2005.
- The PMLA was showcased as India's commitment to the Vienna Convention on combating money, drug trafficking and countering the financing of terror (CFT).
- The law was aimed at curbing the process of converting illegally earned money into legal cash.
- The Act empowered the Enforcement Directorate (ED) to control money laundering, confiscate property and punish offenders.
- ED recorded around 5,422 cases, attached proceeds to the tune of ₹ 1,04,702 crores (approx), filed Prosecution Complaints in 992 cases resulting in the confiscation of ₹ 869. 31 crores and convicted 23 accused persons under PMLA by the end of March 31, 2022.
3. Effect on crypto
- The gazette notification by the Ministry brings cryptocurrency transactions within the ambit of PMLA.
- This means that Indian crypto exchanges will have to report any suspicious activity related to buying or selling of cryptocurrency to the Financial Intelligence Unit-India (FIU-IND).
- This central agency is responsible for receiving, processing, analysing and disseminating information related to suspicious financial transactions to law enforcement agencies and overseas FIUs.
- In its analysis, if the FIU-IND finds wrongdoing, it will alert the ED.
- Under Sections 5 and 8 (4) of the Act, the ED has discretionary powers to search and seize suspected property without any judicial permission.
4. Reasons for tightening the digital trade
- For a little more than a decade, cryptocurrencies, non-fungible tokens (NFT) and other digital assets enjoyed a regulation-free environment.
- But, in the past couple of years, as the use of digital assets has gone mainstream, regulators have turned hawkish.
- The value of all existing cryptocurrencies is about $804 billion as of January 3, 2023.
- It is about twice the GDP of Singapore in 2021.
- In India, over 10 crore Indians have invested in cryptocurrencies.
- The illegal use of cryptocurrencies hit a record $ 20.1 billion last year.
- Transactions associated with sanctioned entities jumped over 1, 00, 000-fold, making up 44 per cent of last year's illegal activity.
5. Tools used to track money laundering via crypto transactions
- Tracking money trail in cryptocurrency transactions may require new tools and approaches as such transfers differ fundamentally from traditional banking channels.
- FIUs may be familiar with Know Your Customer (KYC) or Customer Due Diligence (CDD) norms.
- But the technological nature of VDAs presents a new challenge in gathering information.
- This requires the intelligence unit to broaden its intelligence framework.
| The Cooperation between FIUs to prevent money laundering and recommends the analysis of crypto wallets, their associated addresses and blockchain records and hardware identifiers like IMEI (International Mobile Equipment Identity), IMSI (International Mobile Subscriber Identity) or SEID (Secure Element Identifier) numbers, as well as MAC addresses. |
6. Regulations in other Countries
- The Global Crypto Regulations Report 2023 a large proportion of countries are at various stages of drafting regulations around crypto.
- Most countries have already brought digital assets under anti-money laundering laws.
- Singapore, Japan, Switzerland and Malaysia have legislation on the regulatory framework.
- The U.S., U.K., Australia and Canada have initiated plans for regulation.
- So far, China, Qatar and Saudi Arabia have issued a blanket ban on cryptocurrency.
- The EU is also preparing a cross-jurisdictional regulatory and supervisory framework for crypto-assets.
- The framework seeks to provide legal clarity, consumer and investor protection and market integrity while promoting innovation in digital assets.
7. The Changes imply
- The new clause in the rules for PMLA compliance defines "Politically Exposed Persons" as individuals who have been entrusted with prominent public functions by a foreign country, including the heads of State or Governments, Senior politicians, Senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials.
- The amendment is about foreign PEPs and not domestic ones.
- The move to define politically exposed persons under PMLA is to bring uniformity with a 2008 circular of the RBI for KYC norms/Anti-money laundering standards for banks and financial institutions, which had defined PEPs in line with FATF norms.
- PEP has already been in the RBI's master circular, in line with FATF.
- The definition has now been given in the PMLA rules so that the same definition is applicable everywhere.
8. Significance of the FATF-related changes
- The amendments assume significance ahead of India's proposed FATF assessment, which is expected to be undertaken later this year.
- India's assessment is likely to come up for discussion in the plenary discussion in June, while the possible onsite assessment is slated for November.
- Due to the pandemic and the pause in the FATF's assessment process, the fourth round of mutual evaluation of India had been postponed to 2023.
- Before this, the FATF had undertaken an evaluation for India in June 2010.
- The FATF, which is the global money laundering and terrorist financing watchdog, has 40 recommendations.
- In its recommendations, the FATF states that financial institutions should be required to have appropriate risk-management systems to determine whether a customer or beneficial owner is a domestic PEP or a person who is or has been entrusted with a prominent function by an international organisation.
- The broader objective is to bring in legal uniformity and remove ambiguities before the FATF assessment.
- The 40 recommendations cover seven areas and provide a framework of measures.
- This is to help countries tackle illicit financial flows through laws, regulations and operational measures to ensure authorities can take action to detect and disrupt financial flows that fuel crime and terrorism.
- Policies and coordination;
- Money laundering and confiscation;
- Terrorist financing and financing of proliferation;
- Preventive measures;
- Transparency and beneficial ownership of legal persons and arrangements
- Powers and responsibilities of competent authorities and other institutional measures and
- International cooperation.
9. Other Changes in the PMLA rules
- The Amended rules have also lowered the threshold for identifying beneficial owners by reporting entities, where the client is acting on behalf of its beneficial owner, in line with the Companies Act and Income-tax Act.
- The term "beneficial owner" was defined to mean ownership of or entitlement to more than 25 per cent of shares or capital or profit of the company, which has now been reduced to 10 per cent, thereby bringing more indirect participants within the reporting net.
- Also, reporting entities are now required to register details of the client if it's a non-profit organisation on the DARPAN portal of NITI Aayog.
- Every Banking Company or Financial Institution or intermediary, as the case may be, shall register the details of the client, in case of the client is a non-profit organisation, on the DARPAN portal of NITI Aayog, if not already registered and maintain such registration records for five years after the business relationship between a client and a reporting entity has ended or the account has been closed, whichever is later.
- The definition of a non-profit organisation has also been amended and linked to the definition of charitable purpose provided under Section 2 (15) of the Income-tax Act 1961 to include any entity or organisation, constituted for religious or charitable purposes under I-T Act, that is registered as a trust or society under the Societies Registration Act or any similar state legislation or a company registered under the Companies Act.
- The due diligence documentation requirements, which were until now limited to obtaining the basic KYCs of clients such as registration certificates PAN copies and documents of officers holding an attorney to transact on behalf of the client have now been extended.
- It now includes the submission of details such as names of persons holding senior management positions, names of partners, names of beneficiaries, trustees, settlors and authors, as the case may be, depending upon the legal form of the organisation.
- Also, the details of the registered office address and principal place of business are now required to be submitted by clients to financial institutions, banking companies or intermediaries.
For Prelims & Mains
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For Prelims: Money Laundering Act, Financial Action Task Force, Enforcement Directorate, financing of terror, FIU-IND, NFT, Customer Due Diligence, IMEI, IMSI, SEID, Global Crypto Regulations Report 2023, cryptocurrencies, DARPAN portal of NITI Aayog, Income-tax Act 1961, Societies Registration Act, Companies Act,
For Mains:
1. What is the new Amendment to the Prevention of Money-laundering Act and how it will impact politically exposed persons and NGOs? (250 Words)
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FLASH FLOODS
2. What is a Flood
- Flood is an overflow of a large amount of water beyond its normal limits, especially over what is normally dry land.
- Flooding is an overflowing of water onto land that is normally dry.
- Floods can happen during heavy rains, when ocean waves come on shore, when the snow melts quickly, or when dams or levees break.
- Damaging flooding may happen with only a few inches of water, or it may cover a house to the rooftop.
- Floods can occur within minutes or over a long period, and may last days, weeks, or longer.
- Floods are the most widespread of all weather-related natural disasters.
3. Common causes of floods can be divided into the factors triggering them.
These factors include -
- Meteorological factors
- Physical factors
- Human factors
3.1 Meteorological Factors
The natural causes of floods are discussed below -
- Heavy Rainfall: The season of monsoon
- Cloud Burst: Cloud Burst occurs due to intense precipitation in a short duration which can sometimes be accompanied by hail and storms and can cause a flood.
- Climate Change: According to the International Panel for Climate Change, the rainfall intensity, duration and frequency are going to increase in the future.
- Skewed Rainfall Pattern: 80% of the precipitation takes place in the monsoon months
- Trans-National Rivers: The fact that some of the rivers (like the Brahmaputra, many tributaries of Ganga) causing damage in India to originate in neighbouring countries, adds another complex dimension to the problem
- Cyclone & Heavy rainfall
3.2. Physical Factors.
- Insufficient Drainage Management: Improper planning of the drainage system of an area can cause excess water due to heavy rainfall to get stuck and lead to a flood.
- Catchment Area: Catchment area is an area from where the rainfall water flows into a river. This can be a lake or reservoir. During monsoon, when excess water exceeds the limited holding capacity of the catchment area, it leads to floods.
3.3. Human Factor
- Siltation: Siltation refers to the flow of silt and sediments in the riverbed. As particles remain suspended in the river and accumulated in the riverbed, it disrupts the flow of the river, causing a flood.
- Improper Agricultural Practices: If farmers are not cautious of the effects of farming practices meaning if they leave the waste material in the river or cannot handle water management properly, it can lead to a flood.
- Deforestation: Deforestation is one of the major human causes of floods. Trees act like a sponge that helps to hold soil and water and prevent flooding. As trees are being cut down at a fast pace to make way for urbanisation to grow, more water runs towards a river during heavy rainfall. As a result, a flood occurs.
- Collapse of Dams: Dams are built to store water and provide water to people. As dams are human-made, these can be worn out and subsequently collapse causing floods. Also, if heavy rainfall sustains for a long time, State Governments often declare to open dam gates which can lead to a dangerous flood.- Temples of Modern India to Water Bombs
- Unplanned Development
- Neglect of Pre-Disaster Planning
4.Types of Flood
- Coastal Floods: Coastal floods occur when strong winds or storms move towards the coast during high tide.
- Flash Floods: Flash floods usually occur in hilly areas in limited space. Here the sudden heavy rainfall or snow thaws are the causes of flooding. The fast-moving torrent of Flash floods can sweep large objects such as cars, rocks and everything that comes in their path.
- River Floods: River floods occur due to the inflow of water from heavy rainfall, snowmelt or powerful storms.
- Pluvial Floods: Pluvial floods occur in areas that cannot hold rainwater and end up forming puddles and ponds. eg- rural areas.
- Urban Floods: When the drainage system of urban areas fails to absorb rainwater.
The impacts of floods affect both individuals and communities and have social-environmental consequences.
- Human Loss and Property Loss: Every year, millions of people become homeless and washed away due to floods.
- Spread of Communicable Diseases: Waterborne diseases like cholera, typhoid fever, hepatitis, and leptospirosis spread in flood-affected areas. Floods also lead to vector-borne diseases, transmitted through parasites and pathogens such as a mosquito. As a result, the health of flood victims deteriorates.
- Destruction of Crops: Every year, floods destroy a large number of crops.
- Loss of Livestock: Like humans, livestock also get displaced during floods and dies due to the loss of their habitats.
- Disruption of Communication Link and Transportation: Flood causes damage to transportation links such as bridges, rail, power plants etc., thus causing communication disruption in those areas.
- Economic and Social Disruption: The economy comes to a standstill as people are forced to move to another place, and revival of this situation takes time.
Approaches to dealing with floods may be any one or a combination of the following available options:
- Attempts to modify the flood
- Attempts to modify the susceptibility to flooding damage
- Attempts to modify the loss burden
- Bearing the loss.
- The main thrust of the flood protection programme undertaken in India so far has been an attempt to modify the flood in the form of physical (structural) measures to prevent the floodwaters from reaching potential damage centres and modify susceptibility to flooding damage through early warning systems.
6.1 Structural measures
The following structural measures are generally adopted for flood protection:
- Embankments, flood walls, sea walls
- Dams and reservoirs
- Natural detention basins
- Channel improvement
- Drainage improvement
- Diversion of flood waters.
6.2 Non-structural measures
Non-structural measures include:
- Flood forecasting and warning
- Floodplain zoning
- Flood fighting
- Floodproofing
- Flood insurance.
7.What are Flash Floods
- Flash floods are the most dangerous kind of floods because they combine the destructive power of a flood with incredible speed.
- Flash floods occur when heavy rainfall exceeds the ability of the ground to absorb it. They also occur when water fills normally dry creeks or streams or enough water accumulates for streams to overtop their banks, causing rapid rises of water in a short amount of time.
- They can happen within minutes of the causative rainfall, limiting the time available to warn and protect the public.
8. Status of Floods in India
8.1 NDRF Report
- 40 million hectares (10% of the land mass) in India are prone to floods.
- On average every year, 5 million hectares of land are affected, 1600 lives are lost and more than Rs. 1,800 crores is incurred.
8.2 Statistics
- Between 1970 and 2004, 3 floods occurred per year on average. However, between 2005 and 2019, the yearly average rose to 11. 19 districts were affected annually on an average until 2005. After 2005, the number jumped to 55.
- 2017 analysis suggests that 4.48 million Indians are exposed to riverine floods, the highest in the world.
9. What areas are at risk from flash floods?
- Densely populated areas are at high risk for flash floods. The construction of buildings, highways, driveways, and parking lots increases runoff by reducing the amount of rain absorbed by the ground. This runoff increases the flash flood potential.
- Areas near rivers are at risk from floods. Embankments, known as levees, are often built along rivers and are used to prevent high water from flooding bordering land.
- Dam failures can send a sudden destructive surge of water downstream.
- Mountains and steep hills produce rapid runoff, which causes streams to rise quickly.
- Saturated soils can also lead to rapid flash flooding.
- Sometimes the thunderstorms that produce heavy rainfall may happen well upstream from the impacted area, making it harder to recognize a dangerous situation.
- Very intense rainfall can produce flooding even on dry soil.
- Additional high-risk locations include recent burn areas in mountains and urban areas from pavement and roofs which enhance runoff.
- Ice jams and snowmelt can help cause flash floods. A deep snowpack increases runoff produced by melting snow. Heavy spring rains falling on melting snowpacks can produce flash flooding.
10. The impact of floods in India


11. Impact of flood on wildlife
12. Government actions regarding flood management
12.1.The National Flood Management Commission
- Launched in 1954
- Different structural and non-structural methods have been applied by various states under it.
- To evolve a scientific, integrated and coordinated approach to flood control
- It recommended Flood plain zoning and management to regulate human activities.
- It was set up to review the impact of the recommendations of Rashtriya Barh Aayog.
- It recommended large flood moderation projects, following up the enactment of flood plain zoning.
12.4.National Water Policy, 2002
- It recommended
- Basin-wise plan for flood control and management.
- Flood control to be given overriding consideration in reservoir regulation policy.
- More emphasis on non-structural measures.
- Strict regulation of settlements and economic activities in flood plains.
12.5. K. Mittal Committee, 2003
Its main recommendations were
- Afforestation and treatment of catchment area, right land-use practices and others.
- In the river itself a construction of suitable hydraulic structures that may trap silt.
- Embankment along the aggrading river should be constructed, only after proper studies are made on its behaviour especially due to sedimentation load and resultant morphological changes.
CHILD MARRIAGE
1. Context
The judgment in Society for Enlightenment and Voluntary Action v. Union of India, delivered by the Supreme Court earlier this month, has moved the focus in cases of child marriage from penalising criminal actions to addressing the “harm meted out to the victim”
2. What is child marriage
Child marriage is a marriage or union between a child under the age of 18 and an adult or another child. It is a harmful practice that violates the rights of children and has devastating consequences for their lives. Child marriage is defined as any formal marriage or informal union between a child under the age of 18 and an adult or another child. This includes both legally recognized marriages and informal unions where a child lives with a partner as if they are married.
3. The statistics and data on Child Marriage in India
Child marriage remains a significant issue in India, despite a decline in recent years. According to UNICEF, India has the highest number of child brides in the world, with an estimated 1.5 million girls married before the age of 18 every year.
- The prevalence of child marriage in India varies across regions, with higher rates in rural areas and certain states. According to the National Family Health Survey (NFHS-5) conducted in 2019-2021, 23% of women aged 20-24 were married before the age of 18.
- Rajasthan has the highest prevalence of child marriage, with 35.4% of women aged 20-24 married before 18. Other states with high rates include Bihar (32.4%), Uttar Pradesh (29.3%), Jharkhand (26.5%), and Madhya Pradesh (25.2%).
- Child marriage is more prevalent in rural areas compared to urban areas. In rural areas, 27% of women aged 20-24 were married before 18, compared to 14.7% in urban areas.
- Education plays a crucial role in reducing child marriage. The NFHS-5 data shows that among women with no education, 46.5% were married before 18, compared to 11.4% among women with 12 or more years of education.
- Despite the high prevalence, there has been a decline in child marriage rates in India. The NFHS-5 data shows a decrease from 47.4% in 2005-2006 to 23% in 2019-2021.
4. Reasons for the prevalent of child marriages in India
Child marriage remains prevalent in certain areas of India due to a complex interplay of social, economic, and cultural factors. These factors reinforce each other, making it difficult to eradicate the practice entirely. Some of the key reasons for the persistence of child marriage in certain areas include:
- In some communities, child marriage is deeply ingrained in social norms and traditions. Girls are often seen as a burden, and marrying them off early is considered a way to protect their family's honour and reduce the economic strain.
- Poverty is a major driver of child marriage. Families struggling to make ends meet may see marrying off their daughters early as a way to reduce their financial burden and ensure their daughters' future security.
- In many communities where child marriage is prevalent, girls are not valued as much as boys. They are often denied education and opportunities for personal development, making them more vulnerable to early marriage.
- Education plays a crucial role in preventing child marriage. Girls who are educated are more likely to delay marriage, have better health outcomes, and contribute to their families and communities. However, in many areas where child marriage is common, girls have limited access to education.
- While India has laws prohibiting child marriage, enforcement remains weak, particularly in rural areas. This lack of enforcement allows the practice to continue unchecked.
5. Why Child Marriage is a violation of Human Rights?
Child marriage is a violation of human rights because it deprives children of their fundamental rights and freedoms, undermining their physical, emotional, and social well-being. It robs them of their childhood, their education, and their health, perpetuating gender inequality and perpetuating cycles of poverty.
- Right to Free and Full Consent to Marriage: Child marriage violates the right to free and full consent to marriage, as enshrined in the Universal Declaration of Human Rights (UDHR) and other international human rights instruments. Children, due to their age and immaturity, are not capable of making informed and independent decisions about marriage. They may be coerced or manipulated into marrying against their will, often by parents or guardians who prioritize cultural norms or economic considerations over the child's well-being.
- Right to Education: Child marriage often leads to girls dropping out of school, depriving them of their right to education and limiting their future opportunities. Early marriage responsibilities, such as household chores, childcare, and early pregnancy, hinder their ability to pursue education and personal development.
- Right to Health: Child marriage poses serious health risks, particularly for girls. Early pregnancy and childbirth increase the risk of maternal mortality, obstetric fistula, and other health complications. Girls married young are more vulnerable to sexually transmitted infections, including HIV/AIDS, due to power imbalances and limited access to reproductive health information and services.
- Right to Protection from Violence: Child brides are more susceptible to domestic violence, sexual abuse, and exploitation. The power imbalance in these marriages makes it difficult for girls to assert their rights or seek help, perpetuating a cycle of violence and trauma.
- Right to Equality and Non-Discrimination: Child marriage reinforces gender inequality, perpetuating the notion that girls are less valuable than boys. It limits their opportunities for personal growth and perpetuates harmful stereotypes that undermine their agency and decision-making power.
6. The Government initiatives were taken to curb Child Marriages in India
The Indian government has implemented various initiatives to curb child marriages and protect the rights of children, particularly girls. These initiatives encompass legislative measures, policy frameworks, and social empowerment programs.
- Prohibition of Child Marriage Act, 2006 prohibits child marriage, defining a child as a person below 18 years of age. It makes child marriage a punishable offence, with penalties for individuals involved in arranging or solemnizing such marriages.
- The National Plan of Action for Children (NPAC) outlines a comprehensive strategy to address child rights issues, including child marriage. It focuses on the prevention, protection, and rehabilitation of child marriage victims.
- The Beti Bachao Beti Padhao (BBBP) program aims to empower girls and prevent child marriage through a multi-pronged approach. It promotes education, skill development, and social awareness to enhance girls' value and reduce their vulnerability to early marriage.
- Appointment of Child Marriage Prohibition Officers (CMPOs) The government has appointed CMPOs at district and block levels to monitor and prevent child marriages. These officers conduct awareness campaigns, investigate child marriage cases, and facilitate legal action.
- The National Child Marriage Prohibition Officer (NCMPO) coordinates and oversees the implementation of the Prohibition of Child Marriage Act across India. They provide technical support to CMPOs and collaborate with various stakeholders to address child marriage.
- The National Commission for Protection of Child Rights (NCPCR) is a statutory body that safeguards child rights, including protection from child marriage. It receives complaints, conducts inquiries, and recommends actions to prevent and address child marriage cases.
- Integrated Child Development Services (ICDS) provides a range of services to children and mothers, including nutrition, health care, and early childhood education. These services indirectly contribute to preventing child marriage by promoting girls' well-being and education.
- Sakshar Bharat Mission is a literacy program that aims to increase literacy rates, particularly among women and girls. Education empowers girls and makes them less vulnerable to child marriage.
- National Education Policy (NEP) 2020 emphasizes gender equality and inclusive education, promoting girls' education and creating an enabling environment to delay marriage and pursue personal development.
- Collaboration with NGOs and civil society organizations to implement awareness campaigns, community engagement programs, and interventions to prevent child marriage.
7. The Prohibition of Child Marriage (Amendment) Bill, 2021
The Prohibition of Child Marriage (Amendment) Bill, 2021, proposes to amend the Prohibition of Child Marriage Act, 2006, to strengthen the legal framework against child marriage and enhance the protection of children, particularly girls.
The key provisions of the Bill include:
- The Bill proposes to increase the minimum age of marriage for women from 18 to 21 years, bringing it at par with the minimum age for men. This aligns with the principle of gender equality and recognizes that women should have the same opportunities as men to pursue education, personal development, and career aspirations before entering marriage.
- The Bill proposes to make child marriage a cognizable offence, allowing police to arrest an accused without a warrant, and a non-bailable offence, making it more difficult for the accused to obtain bail. This strengthens the deterrent effect of the law and sends a strong message against child marriage.
- The Bill proposes to increase the punishment for child marriage to a minimum of two years imprisonment and a fine of up to one lakh rupees. This enhanced punishment reflects the seriousness of the offence and aims to discourage individuals from engaging in child marriage practices.
- The Bill proposes to extend the period for annulment of child marriage from two years to five years after attaining majority. This provides a longer window for victims of child marriage to seek legal remedies and escape from unwanted marital unions.
- The Bill proposes to designate Child Marriage Prohibition Officers (CMPOs) at various levels to prevent, monitor, and report child marriage cases. These officers would be responsible for conducting awareness campaigns, investigating child marriage cases, and facilitating legal action.
- The Bill proposes to give the Prohibition of Child Marriage Act an overriding effect on any personal law, custom, usage, or practice governing the parties. This ensures that the Act takes precedence over any conflicting provisions in personal laws, ensuring uniformity in the legal framework against child marriage.
8. International Conventions and Declarations
The UN Convention on Consent to Marriage, Minimum Age for Marriage and Registration of Marriages (1962), the UN Convention on the Elimination of All Forms of Discrimination against Women (1979), and the Beijing Declaration (1995) all address the issue of child marriage and call for its elimination.
- UN Convention on Consent to Marriage, Minimum Age for Marriage and Registration of Marriages (1962) establishes that all marriages must be entered into with the full and free consent of both parties, and it sets a minimum age for marriage at 15 years old. However, it allows for countries to set a higher minimum age, and it encourages them to do so.
- UN Convention on the Elimination of All Forms of Discrimination against Women (1979) defines child marriage as a form of discrimination against women and girls, and it calls on states to take all appropriate measures to eliminate child marriage, including setting a minimum age for marriage at 18 years old.
- Beijing Declaration (1995) reaffirms the commitment to eliminate child marriage and calls on states to take measures to prevent and eliminate child marriage, including enacting and enforcing laws that set a minimum age for marriage at 18 years old. It also calls for measures to address the root causes of child marriage, such as poverty, gender inequality, and lack of access to education.
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For Prelims: Child Marriages, The UN Convention on Consent to Marriage, Minimum Age for Marriage and Registration of Marriages (1962), the UN Convention on the Elimination of All Forms of Discrimination against Women (1979), the Beijing Declaration (1995), Prohibition of Child Marriage Act, UNICEF, NFHS-5, Beti Bachao Beti Padhao, Child Marriage Act, 2006,
For Mains:
1. Explain how child marriage is a violation of human rights. Elaborate on the rights and freedoms that child marriage undermines and the consequences it has on children's lives. (250 Words)
2. Evaluate the government initiatives in India to combat child marriages. Assess the effectiveness of legislative measures, policy frameworks, and social empowerment programs in addressing this issue. (250 Words)
3. Examine the role of education in reducing child marriage. Discuss how access to education can empower girls and delay the age of marriage. (250 Words)
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Previous Year Questions
Prelims
1. Read the following about child marriages: (Telangana Police SI 2016)
A) 'Child Marriage Restraint Act, 1929' fixed the age of the marriage for girls at 14 years.
B) 'Prohibition of Child Marriage Act, 2006' raised the age of marriage for girls to 18 years.
C) The 2011 Census found that 18% of women were married before 18 years of age.
Choose the correct statements
1. A & B 2. B & C 3. C & A 4. A, B & C
Answer: 1
2. 'Beijing Declaration and Platform for Action', often seen in the news, is (UPSC 2015)
A. a strategy to tackle the regional terrorism, an outcome of a meeting of the Shanghai Cooperation Organization
B. a plan of action for sustainable economic growth in the Asia-Pacific Region, an outcome of the deliberations of the Asia-Pacific Economic Forum
C. an agenda for women's empowerment, an outcome of a World Conference convened by the United Nations
D. a strategy to combat wildlife trafficking, a declaration of the East Asia Summit
Answer: C
3. The Prohibition of Child Marriage Act, 2006, prohibits child marriage. Under this act, ______ is the legal age for the marriage of girls. (DSSSB DOE PRT 2022)
A. 16 years B. 20 years C. 22 years D. 18 years
Answer: D
4. United Nations Children's Fund (UNICEF) was founded in ____ (DSSSB AE Civil 2021)
A.1948 B. 1945 C. 1946 D. 1947
Answer: C
5. Consider the following statements: (UPSC 2021)
1. 21st February is declared to be the International Mother Language Day by UNICEF.
2. The demand that Bangla has to be one of the national languages was raised in the Constituent Assembly of Pakistan.
Which of the above statement is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: B
6. National Family Health Survey (NFHS) – 5 does not include - (UPPSC 2019)
A. High blood-pressure B. Diabetes C. HIV Test D. Registration of death
Answer: C
Mains
1. What are the continued challenges for Women in India against time and space? (UPSC 2019)
2. Women empowerment in India needs gender budgeting. What are the requirements and status of gender budgeting in the Indian context? (UPSC 2016)
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