LIGHTNING
1. Context
While a lightning strike occurs between a cloud and an object on or near the ground, it takes the path of least resistance, which means it moves towards the closest object with the highest electric potential.
2. What is lightning and how does it occur?
- Lightning is an electrical discharge that occurs when there is an imbalance between the storm clouds and the earth or even within the clouds.
- Scientists believe that for lightning to occur, positive and negative charges must separate within a cloud.
- This happens, according to the National Oceanic and Atmospheric Administration (NOAA), when the water droplets in the bottom part of the cloud are moved upwards, where the much colder atmosphere freezes them into small ice crystals.
- As these small ice crystals continue to go up, they gain more mass and eventually become so heavy that they start to fall down to earth.
- This causes a system in which ice crystals going down collides with the water vapors coming up, leading to the accumulation of positive charges on the top of the cloud and negative changes gathering at the base, while the atmosphere between them in the cloud acts as an insulator.
- When the positive and negative charges grow large enough, their strength overpowers the insulating properties of the properties.
- As a result, the two kinds of changes meet with each other and produce lightning.
- Although most of the lightning takes place within the clouds, sometimes it is directed towards Earth also. With the base of the cloud becoming negatively charged, positive charges start accumulating on tall objects, like trees, poles, and buildings.
3. Why is it a matter of concern?
- Data from the National Crime Records Bureau show that since 2005, lightning has been responsible for at least 2,000 fatalities annually.
- Rural areas account for more than 90% of lightning-related fatalities,
- It is not considered a natural calamity, thus unlike in the case of floods or earthquakes, the afflicted people are not entitled to government compensation.
4. Where are the lightning hotspots around the world?
- It has been discovered by scientists at the Smithsonian Tropical Research Institute (STRI) in Panama that lightning strikes the tropics more than 100 million times a year.
- Asia, South America, North America, Australia, and Africa are the other continents having the highest concentration of lightning hotspots.
- According to experts, lightning strikes are expected to rise by 25-50% as a result of climate change.
5. Findings of the latest study
- The researchers analyzed 5,858 selected lightning-ignited fires based on satellite images of US wildfires between 1992 and 2018 and found that approximately 90 percent of them might have been started by "hot lightning" strikes.
- Also known as long continuing current (LOC), this type of lightning strike can last from around 40 milliseconds to nearly a third of a second.
6. Why Hot lighting has more potential of triggering a wildfire than typical lightning?
- Lightning with continuing currents can transport more energy from cloud to ground than typical lightning. When lightning with continuing currents attaches to ground or vegetation, they produce more Joule heating and higher temperature than typical lightning, increasing the probability of ignition.
- With the help of computer simulations, the researchers also looked at the frequency of "hot lightning" strikes and observed that as the atmosphere warms, there might be an increase of 41 percent in the incidents of LCC strikes by 2090.
- This means that the rate of such lightning flashes could jump from three strikes per second globally to four strikes per second. Meanwhile, the frequency of all cloud-to-ground strikes might increase to nearly eight flashes per second, a 28 percent jump.
- According to the study, the areas that might witness a significant increase in wildfires triggered by the LCC strikes are Southeast Asia, South America, Africa, Australia, North, America, and Europe.
- The researchers predicted this after accounting for changes in precipitation, humidity, and temperature.
- However, many northern polar regions might see a decrease in wildfires as rainfall is projected to increase while "hot lightning " rates remain constant.
7. Government initiatives to tackle this problem
- Lightning Alert System provides a location-specific forecast of thunder, lightning, strong winds, high winds, and hailstorms occurrences for up to 48 hours.
- The Common Alert Protocol (CAP) system has been released by the National Disaster Management Authority (NDMA) to alert citizens to imminent thunderstorms and lightning.
- From the INSAT-3DR satellite, which uploads data every 15 minutes, ISRO provides information about convective clouds.
- A GPS notification from the Damini App, which was created by the Indian Institute of Tropical Meteorology and Earth System Science organization, alerts users when lightning is nearby and is between 20 to 40 kilometers away.
8. National Oceanic and Atmospheric Administration (NOAA)
The National Oceanic and Atmospheric Administration is an American Scientific and regulatory agency within the United States Department of Commerce that forecasts weather monitors oceanic and atmospheric conditions, chart the seas, conducts deep sea exploration, and manages fishing and protection of marine mammals and endangered species.
NOAA provides services to its customers and information pertaining to the state of the oceans and the atmosphere, such as weather warnings and forecasts via the National Weather Service.
NOAA’s five fundamental activities are
- Monitoring and observing Earth systems with instruments and data collection networks.
- Understanding and describing Earth systems through research and analysis of data.
- Assessing and predicting the changes in these systems over time.
- Engaging, advising, and informing the public and partner organizations with relevant information.
- Custodianship of environmental resources.
Previous year question
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1. During a thunderstorm, the thunder in the skies is produced by the (UPSC 2013)
1. meeting of cumulonimbus clouds in the sky
2. lightning that separates the nimbus clouds
3. violent upward movement of air and water particles
Select the correct answer using the codes given below.
A.1 only B.2 and 3 C.1 and 3 D.None of the above produces the thunder
Answer : D
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For Prelims & Mains
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For Prelims: Lightning, National Oceanic and Atmospheric Administration (NOAA), Common Alert Protocol (CAP) system, National Disaster Management Authority (NDMA), INSAT-3DR satellite, Long continuing current (LOC), and Damini App.
For Mains:1. What is lightning and discuss how does it occur and explain why Hot lighting has more potential of triggering a wildfire than typical lightning?
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Source: The Indian Express
FLASH FLOODS
1. Context
Flash floods, that have ripped through northern Afghanistan, have left more than 300 people dead, the United Nations World Food Programme (WFP) said.
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.
5. Damages Caused by Floods in India
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.
6. Flood Management
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.
LITHIUM-ION CELLS
1. Context
The Ministry of Mines was forced to scrap the auction for the lithium block in Jammu and Kashmir’s (J&K’s) Reasi district for the second time, following weak investor response.
2. About Lithium
Lithium is a chemical element with the symbol Li and atomic number 3. It is a soft, silvery-white alkali metal. Under standard conditions, it is the least dense metal and the least dense solid element
Lithium is one of the key components in electric vehicle (EV) batteries. As the world transitions from gasoline and diesel to electric vehicles, the demand for lithium is going up rapidly too. Lithium is used not only in EVs but also in batteries for gadgets like laptops and mobile phones. It has also found application in the glass and ceramics industries
Lithium has been dubbed “white gold” for its widespread usage in items indispensable to modern-day living
3. QuantumScape's Brighter Battery
- In the realm of technological advancements, QuantumScape's solid-state battery, featuring lithium metal with a solid electrolyte between the electrodes, stands out as a highly promising innovation in a crowded field.
- Co-founded by Jagdeep Singh a decade ago and backed by financial support from Volkswagen and Bill Gates' venture fund, the company went public late last year, quickly attaining a valuation of nearly $50 billion.
- This rapid ascent was fueled by the belief that QuantumScape's groundbreaking battery technology could present a safer and more cost-effective alternative to traditional lithium-ion batteries.
- Unlike previous attempts to develop a solid-state separator compatible with lithium metal, which is often compromised on factors such as battery cycle life and operating temperature, QuantumScape claims to have overcome these challenges.
- The company's utilization of solid-state separator technology effectively eliminates the undesirable side reactions between the liquid electrolyte and the carbon/graphite components in the anode of conventional lithium-ion cells.
- Through its collaboration with QuantumScape, Volkswagen envisions achieving production of solid-state batteries by 2025, signalling a significant leap forward in the pursuit of advanced battery solutions.
4. Limits of Lithium-Ion's batteries
- The energy density of contemporary lithium-ion cells, commonly used in mobile phones and electric vehicles, surpasses older nickel-cadmium batteries by nearly four times.
- However, persistent issues such as long charging times and limited energy density continue to pose challenges.
- While suitable for phones and laptops, lithium-ion batteries fall short of providing the range needed to make electric vehicles a compelling alternative to traditional internal combustion engines.
- A significant hurdle in lithium-ion technology is the extreme reactivity of lithium metal.
- Dendrites, branch-like lithium structures that can grow from the electrode, pose a major risk by potentially piercing through the separator and causing a short circuit.
- In current lithium-ion batteries with flammable liquid electrolytes, dendrite formation can lead to hazardous fires.
5. The Rise of Solid-State Batteries
QuantumScape addresses these challenges with its solid-state lithium-metal battery. Unlike traditional lithium-ion batteries that use a polymer separator, QuantumScape replaces it with a solid-state separator. This innovation allows the integration of a lithium-metal anode instead of the conventional carbon/graphite anode.
The lithium metal anode in QuantumScape's design boasts higher energy density compared to traditional anodes. This enhancement enables the battery to store more energy within the same volume. Notably, the QuantumScape battery is 'anode-free,' manufactured in a discharged state, with the negative electrode forming in situ during the initial charge.
Key Advantages of QuantumScape's Technology
- By eliminating the carbon anode, QuantumScape's technology achieves higher cell energy density, allowing for the storage of more energy in the same volume.
- The elimination of the need for lithium diffusion into carbon particles in conventional lithium-ion cells results in reduced charge times.
- The solid-state battery technology enables more charging cycles, leading to a longer battery life.
- With a solid-state separator and the absence of a flammable liquid electrolyte, safety concerns associated with dendrite formation and potential fires are mitigated.
- QuantumScape aims to lower battery costs by 15-20% relative to lithium-ion batteries, a potentially game-changing factor given that battery expenses constitute a significant portion (30%) of total vehicle costs.
Consumer Priorities Align with Solid-State
A study by Deloitte emphasizes that consumer considerations for purchasing electric vehicles include price, reliability, and the cost of charging. QuantumScape's technology aligns with these priorities by targeting lower battery costs, anticipating a significant impact on the overall adoption of electric vehicles. Current lithium-ion battery costs of around $137 per kWh are expected to decrease to $101/kWh by 2023, according to BloombergNEF data.
6. The Diverse Battery Landscape
Form Energy's Iron-Air Battery
In July, Form Energy Inc., based in the United States, introduced a rechargeable iron-air battery designed to deliver electricity for an impressive 100 hours. The company claims that its system cost is competitive with conventional power plants and is less than a tenth of the cost of lithium-ion batteries. Primarily intended for utility-scale applications, this front-of-the-meter battery enables continuous operation, ensuring round-the-clock functionality for renewable electricity grids. The innovative technology relies on the concept of 'reversible rusting,' using oxygen from the air to convert iron metal to rust during discharge and reversing the process during charging.
Toyota's Solid-State Battery
Toyota, leading in the realm of solid-state battery patents with over 1,000 global filings, is actively working on solid-state battery technology. The Japanese automaker aims to regain its position as a battery technology leader, challenging current lithium-ion pack leaders, particularly in China. Toyota is on track to be the first to commercialize an electric vehicle (EV) equipped with a solid-state battery and has plans to unveil a prototype. Nissan is also actively pursuing developments in this field.
Apple's Breakthrough Battery Tech
In the final weeks of 2020, Apple Inc. announced its venture into self-driving car technology, targeting a 2024 timeline for producing a passenger vehicle. A key element of Apple's strategy is a "breakthrough" battery design aimed at significantly reducing battery costs and increasing the vehicle's range. The innovative design is anticipated to have a radical impact on electric vehicle technology.
Tesla's Tabless Battery
In September of the previous year, Tesla revealed plans to develop a "tabless" lithium-ion battery, presenting advancements in electric car range and power. Unlike traditional batteries, Tesla's tabless cells eliminate the need for a tab, the part forming a connection between the cell and the powered device. Tesla claims that these tablet cells will enhance energy capacity by five times, increase power by six times, and extend the vehicle's range by 16 per cent. This development showcases Tesla's continuous efforts to push the boundaries of electric vehicle technology.
7. India's Ambitious Battery Initiatives
Government Blueprint for Grid-Scale Storage: The Indian government is formulating a comprehensive plan for a substantial project involving approximately 4,000 MWh of grid-scale battery storage systems. These installations will be strategically positioned at regional load dispatch centres, responsible for overseeing the nation's power grid. The primary objective is to address the challenges posed by the intermittent nature of renewable energy generation.
Reliance Industries' Energy Storage Giga Factory: Reliance Industries Ltd., a prominent Indian conglomerate, has unveiled plans to establish an Energy Storage Giga factory. This ambitious project reflects a strategic move toward advancing energy storage capabilities within the country. The facility is anticipated to play a crucial role in meeting the growing demand for reliable and efficient energy storage solutions.
NTPC's Global Tender for Grid-Scale Battery Project: The state-owned NTPC Ltd. has taken significant steps by issuing a global tender for a grid-scale battery storage project. This initiative aligns with broader efforts to enhance India's energy infrastructure and integrate sustainable practices. The global tender indicates a commitment to exploring cutting-edge technologies and solutions for large-scale battery storage systems.
Ministry of Heavy Industries' Call for Advanced Chemistry Cell (ACC) Manufacturing: The Ministry of Heavy Industries proactively issued a request for proposals on October 22, signalling the intent to establish manufacturing facilities for Advanced Chemistry Cell (ACC) battery storage in India. This move underscores the government's commitment to fostering indigenous manufacturing capabilities for advanced battery technologies. The proposal submission deadline, concluding on December 31, highlights the urgency and priority accorded to the development of ACC battery storage within the country.
8. The Way Forward
As the world transitions to a cleaner and more sustainable future, battery technology is at the heart of it all. With advancements in lithium-ion, the rise of solid-state batteries, and the exploration of diverse technologies, we can expect a future powered by safer, more efficient, and longer-lasting batteries. The future is bright, and it's powered by innovation.
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For Prelims: Lithium-ion, Solid-state batteries, rare earth elements, Electronic Vehicles
For Mains:
1. Critically analyze the potential of QuantumScape's solid-state battery technology compared to traditional lithium-ion batteries. Discuss its advantages and challenges in the context of electric vehicle adoption. (250 Words)
2. Discuss the economic implications of the growing battery market. Discuss the potential impact on battery costs, job creation, and the overall economic landscape. (250 Words)
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Previous Year Questions
1. Which type of battery is used in the recently launched world's first fully electric cargo ship by change? (Delhi Police Constable 2017)
A. Lead Acid
B. Manganese
C. Lithium ion
D. Nickel metal hydride
2. Recently, there has been a concern over the short supply of a group of elements called 'rare earth metals.' Why? (UPSC 2012)
1. China, which is the largest producer of these elements, has imposed some restrictions on their export.
2. Other than China, Australia, Canada and Chile, these elements are not found in any country. 3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements.
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
3. With reference to India, consider the following statements : (UPSC 2022)
1. Monazite is a source of rare earths.
2. Monazite contains thorium.
3. Monazite occurs naturally in the entire Indian coastal sands in India.
4. In India, Government bodies only can process or export monazite.
Which of the statements given above are correct ?
A. 1, 2 and 3 only B. 1, 2 and 4 only C. 3 and 4 only D. 1, 2, 3 and 4
4. With reference to 'fuel cells' in which hydrogen-rich fuel and oxygen are used to generate electricity, consider the following statements: (UPSC 2015)
1. If pure hydrogen is used as a fuel, the fuel cell emits heat and water as by-products.
2. Fuel cells can be used for powering buildings and not for small devices like laptop computers.
3. Fuel cells produce electricity in the form of Alternating Current (AC)
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
5. With the present state of development, Artificial Intelligence can effectively do which of the following? (UPSC 2020)
1. Bring down electricity consumption in industrial units.
2. Create meaningful short stories and songs.
3. Disease diagnosis.
4. Text-to-Speech Conversion.
5. Wireless transmission of electrical energy.
Select the correct answer using the code given below:
A. 1, 2, 3 and 5 only B. 1, 3 and 4 only C. 2, 4 and 5 only D. 1, 2, 3, 4 and 5
6. Which one of the following pairs of metals constitutes the lightest metal and the heaviest metal, respectively? (UPSC 2008) A. Lithium and mercury Answers: 1-C, 2-C, 3-B, 4-A, 5-B, 6-B |
Source: The Indian Express
GOODS AND SERVICE TAX (GST)
1. Context
Demanding the rollback of the 18% Goods and Services Tax (GST) imposed on life and health insurance premiums, the INDIA bloc parties held protests on the steps leading to the Makar Dwar of Parliament
2. What is the Goods and Services Tax (GST)?
- The Goods and Services Tax (GST) is a value-added tax levied on the supply of goods and services at each stage of the production and distribution chain. It is a comprehensive indirect tax that aims to replace multiple indirect taxes imposed by the central and state governments in India.
- GST is designed to simplify the tax structure, eliminate the cascading effect of taxes, and create a unified national market. Under the GST system, both goods and services are taxed at multiple rates based on the nature of the product or service. The tax is collected at each stage of the supply chain, and businesses are allowed to claim a credit for the taxes paid on their inputs.
- The GST system in India came into effect on July 1, 2017, replacing a complex tax structure that included central excise duty, service tax, and state-level taxes like VAT (Value Added Tax), among others. The GST Council, consisting of representatives from the central and state governments, is responsible for making decisions on various aspects of GST, including tax rates and rules.
- GST is intended to create a more transparent and efficient tax system, reduce tax evasion, and promote economic growth by fostering a seamless flow of goods and services across the country. It has a significant impact on businesses, as they need to comply with the new tax regulations and maintain detailed records of their transactions for GST filing
3.Goods and Services Tax (GST) and 101st Amendment Act, 2016
The Goods and Services Tax (GST) in India was introduced through the 101st Amendment Act of 2016. This constitutional amendment was a crucial step in the implementation of GST, which aimed to create a unified and comprehensive indirect tax system across the country.
Here are some key points related to the 101st Amendment Act and GST:
- The 101st Amendment Act was enacted to amend the Constitution of India to pave the way for the introduction of the Goods and Services Tax.
- It added a new article, Article 246A, which confers concurrent powers to both the central and state governments to levy and collect GST
- The amendment led to the creation of the GST Council, a constitutional body consisting of representatives from the central and state governments. The council is responsible for making recommendations on GST rates, exemptions, and other related issues
- The amendment introduced a dual GST structure, where both the central government and the state governments have the power to levy and collect GST on the supply of goods and services
- For inter-state transactions, the 101st Amendment Act provides that the central government would levy and collect the Integrated Goods and Services Tax (IGST), which would be a sum total of the central and state GST
- The amendment also included a provision for compensating states for any revenue loss they might incur due to the implementation of GST for a period of five years
The 101st Amendment Act was a critical legislative step that provided the constitutional framework for the implementation of GST in India. It addressed the need for a unified tax system, simplifying the tax structure and promoting a common market across the country. The subsequent establishment of the GST Council has played a pivotal role in the ongoing management and evolution of the GST system in India
4. What are the different types of Goods and Services Tax (GST)?
In India, the Goods and Services Tax (GST) is structured into different tax rates based on the nature of the goods and services. As of my last knowledge update in January 2022, the GST rates are divided into multiple slabs. It's important to note that tax rates may be subject to changes, and new amendments could have been introduced since then. As of my last update, the GST rates are as follows:
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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
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
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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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Source: Indianexpress
QUAD
1. Context
Three weeks after Prime Minister Narendra Modi visited Russian President Vladimir Putin in Moscow, India joined the US, Australia and Japan in the Quad grouping Monday to express its “deepest concern” over the “war raging in Ukraine”, and flagged “respect for sovereignty and territorial integrity” — a clear reference to Russian invasion of Ukraine
2. Quadrilateral Security Dialogue (QUAD)
- The Quad, short for the Quadrilateral Security Dialogue, is a strategic forum comprising four major Indo-Pacific countries: the United States, Japan, India, and Australia.
- The Quad was initiated in 2007 but was relatively dormant for several years before experiencing a revival and increased prominence in recent times.
3. Objectives
- The Quad aims to promote a free, open, and inclusive Indo-Pacific region. Its core objectives include ensuring regional security, stability, and economic prosperity.
- It seeks to uphold the rules-based international order and address common challenges such as maritime security, infrastructure development, economic connectivity, and disaster response.
4. Member Countries
- United States: As a major Pacific power, the U.S. plays a central role in the Quad, emphasizing its commitment to the Indo-Pacific region's security and stability.
- Japan: Japan is a key member, contributing its economic and technological prowess, and advocating for a rules-based international order.
- India: India brings its strategic location and growing influence in the Indo-Pacific to the Quad, strengthening regional security cooperation.
- Australia: Australia is a significant player, contributing to maritime security efforts and championing economic development in the Indo-Pacific.
5. Meetings and Engagement
- The Quad holds regular meetings at various levels, including ministerial meetings and consultations among senior officials.
- It engages in dialogues on a wide range of regional and global issues, from security and defense to infrastructure development and technology cooperation.
Regional Implications:
- The Quad has been viewed as a response to China's rising influence in the Indo-Pacific. However, member countries emphasize that it is not an alliance against any specific country but rather a platform for cooperation on shared interests.
- Some view the Quad as a potential counterbalance to China's assertive behavior in the South China Sea and its Belt and Road Initiative (BRI) infrastructure projects.
Expanding Partnerships:
- The Quad has sought to expand its partnerships with other countries in the Indo-Pacific, including Southeast Asian nations. This approach reflects its commitment to inclusivity and regional engagement.
6. Significance of QUAD for India
The Quad holds significant importance for India due to several strategic, economic, and geopolitical reasons:
Countering Regional Challenges:
- The Quad provides India with a platform to collaborate with like-minded countries, such as the United States, Japan, and Australia, to address common regional challenges. These challenges include maritime security, territorial disputes, and economic concerns in the Indo-Pacific.
Strengthening Regional Security:
- As a member of the Quad, India gains access to enhanced security cooperation, intelligence sharing, and joint exercises. This bolsters its ability to protect its interests and contribute to regional stability in the face of security threats.
Balancing China's Influence:
- India views the Quad as a mechanism to balance China's growing influence in the Indo-Pacific. It helps deter aggressive actions and assertive behavior by China, particularly in areas like the South China Sea and the Indian Ocean region.
Economic Opportunities:
- The Quad promotes economic connectivity and infrastructure development in the Indo-Pacific. India can leverage these initiatives to enhance its trade, investment, and connectivity in the region, which is vital for its economic growth.
Strengthening Ties with Key Allies:
- The Quad allows India to deepen its strategic partnerships with key allies, such as the United States and Japan. These relationships have resulted in increased defense cooperation, technology sharing, and economic collaboration.
Regional Leadership Role:
- Participation in the Quad elevates India's status as a regional leader in the Indo-Pacific. It aligns with India's "Act East" policy, reinforcing its commitment to the stability and prosperity of the broader region.
7. Challenges
- China's Territorial Claims: China claims that it has historical ownership over nearly the entire region of the South China Sea, which gives it the right to manufacture islands. However, the International Court of Arbitration rejected the claim in 2016.
- China's Closeness to ASEAN: The ASEAN countries also have a well-knit relationship with China. The Regional Cooperation Economic Partnership (RCEP) is a recent example of China's increasing influence over ASEAN nations.
- Economic Power of China: Considering the economic might of China and the dependence of QUAD nations like Japan and Australia on China, the QUAD nations can not afford to have strained relations with it.
- Convergence among Quad Nations: The nations in the Quad grouping have different aspirations, and aims at balancing their own interest. Therefore, coherence in the vision of the Quad nation as a grouping is absent.
8. Way forward
The Quad represents a forum for strategic cooperation among four major Indo-Pacific nations, with a focus on regional security, economic development, and upholding the rules-based international order. Its evolving role in the region will likely be a subject of ongoing geopolitical interest and debate.
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For Prelims: Quadrilateral Security Dialogue (QUAD), South China Sea, Belt and Road Initiative (BRI), Indo-Pacific region, ASEAN, and Regional Cooperation Economic Partnership (RCEP).
For Mains: 1. Discuss the evolution, objectives, and geopolitical significance of the Quad (Quadrilateral Security Dialogue) in the context of the Indo-Pacific region. Analyze the challenges and opportunities it presents for the member countries, particularly India. (250 words).
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Source: The Indian Express
