SHANGHAI COOPERATION ORGANISATION
1. Context
Continuing his critical remarks about India, U.S. President Donald Trump on Friday said that the United States has “lost” India to China, in a reference to Prime Minister Narendra Modi’s presence at the Shanghai Cooperation Organisation (SCO) summit in Tianjin earlier this week
2. About Shanghai Cooperation Organisation
- The Shanghai Cooperation Organisation (SCO) is a Eurasian political, economic, international security and defence organisation.
- It is the world's largest regional organization in terms of geographic scope and population, covering approximately 60% of the area of Eurasia, and 40% of the world's population. Its combined GDP is around 20% of global GDP.
- The SCO was founded in 2001 by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.
2.1. Structure
The SCO has several bodies that oversee its activities, including
- The Council of Heads of State, which is the supreme decision-making body of the SCO.
- The Council of Heads of Government, which is responsible for overseeing the implementation of the decisions of the Council of Heads of State.
- The Council of Foreign Ministers, which is responsible for coordinating the foreign policies of the SCO member states.
- The Regional Anti-Terrorist Structure (RATS), which is responsible for combating terrorism, separatism and extremism in the SCO region and
- The SCO Secretariat, which is responsible for the day-to-day running of the organization.
2.2. Members
- The SCO has eight full members China, India, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan.
- It also has six observer states Afghanistan, Belarus, Iran, Mongolia, Nepal and Sri Lanka.
- And six dialogue partners Armenia, Azerbaijan, Cambodia, Egypt, Qatar and Saudi Arabia.
2.3. Goals
- Political and security cooperation, including the fight against terrorism, separatism and extremism
- Economic cooperation, including trade, investment, energy and transportation
- Cultural and humanitarian cooperation and
- Coordination of positions on major international issues.
3. Criticism
- The SCO has been criticized by some for being a tool of Chinese and Russian imperialism.
- However, the organization has also been praised for its role in promoting stability and security in Central Asia.
4. The Way Forward
- The SCO has been expanding its membership in recent years, and it may continue to do so in the future.
- The organization is seen by some as a potential rival to the North Atlantic Treaty Organization (NATO), and its growing influence is being watched closely by the United States and its allies.
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For Prelims: SCO, NATO, India, Central Asia, United States, China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, terrorism,
For Mains:
1. Examine the potential challenges and opportunities for India as a full member of the SCO, highlighting its implications for India's political, economic, and security interests. (250 Words)
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Previous Year Questions
1. Shanghai Cooperation Organisation (SCO) Heads of State Summit was held on 10th November, 2020 in the video conference format. The Summit was hosted by: (OPSC OAS 2021)
A. Russia B. India C. Kazakhstan D. Uzbekistan
Answer: A
2. The Summit of the Shanghai Cooperation Organisation (SCO) was hosted by which country from 15-16 September 2022? (Rajasthan CET 2023)
A. Kazakhstan B. Tajikistan C. Uzbekistan D. India
Answer: C
3. The area known as 'Golan Heights' sometimes appears in the news in the context of the events related to (UPSC 2015)
A. Central Asia B. Middle East C. South-East Asia D. Central Africa
Answer: B
4. Siachen Glacier is situated to the (UPSC 2020)
A. East of Aksai Chin B. East of Leh C. North of Gilgit D. North of Nubra Valley
Answer: D
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Source: SCO
KUKI-ZOMI TRIBE
1. Context
The Coordinating Committee on Manipur Integrity (COCOMI), one of the largest Meitei civil society groups in Manipur, has rejected the signing of Suspension of Operations (SoO) pact with the Kuki-Zo insurgent groups.
2. About Kuki and Zomi tribes
The Kuki-Zomi people are a diverse group of ethnicities inhabiting the mountainous regions of Northeast India, Myanmar, and Bangladesh. They share a common ancestry and cultural heritage, and their name reflects this shared identity: "Kuki" is a more general term encompassing various sub-tribes, while "Zomi" is a relatively recent term adopted by some Kuki communities to emphasize their distinct identity and cultural heritage.
- The exact origins of the Kuki-Zomi people remain unclear, but linguistic evidence suggests they migrated from Southeast Asia centuries ago. Today, they are found primarily in the Indian states of Manipur, Mizoram, Assam, Nagaland, and Tripura, as well as in Chin State, Myanmar, and the Chittagong Hill Tracts of Bangladesh.
- The Kuki-Zomi people comprise numerous sub-tribes, each with its own distinct dialect and cultural practices. Some of the major sub-tribes include the Hmar, Thadou, Paite, Gangte, Vaiphei, Zou, Aimol, and Anal. These sub-tribes speak various Kuki-Chin languages, which belong to the Tibeto-Burman language family.
- The Kuki-Zomi people have a rich and vibrant culture characterized by strong communal bonds, traditional music and dance, and colorful handicrafts. Their traditional attire is often adorned with intricate beadwork and embroidery, reflecting their artistic skills and cultural pride.
- The Kuki-Zomi people have faced various challenges throughout their history, including displacement, conflict, and marginalization. However, they have demonstrated remarkable resilience and adaptability, preserving their unique culture and traditions despite these hardships.
- In recent years, the Kuki-Zomi people have made significant strides in education, entrepreneurship, and political representation. They are increasingly active in advocating for their rights and cultural identity, and their contributions to the social and economic development of the regions they inhabit are becoming increasingly recognized.
3. Delisting Proposal in Manipur
- The representation calling for the potential removal of specific Kuki and Zomi tribes from the Scheduled Tribes (ST) list in Manipur stems from the ongoing ethnic conflict that has persisted for eight months.
- This conflict, initiated on May 3, 2023, arose following an order from the Manipur High Court directing the State government to recommend the inclusion of Meiteis in the ST list to the Centre.
- As the Centre now requests the State government to examine the representation for the delisting of Kuki and Zomi tribes, there is a risk of exacerbating existing tensions between the valley-based Meitei people and the hills-based Kuki-Zo (ST) people in the State.
- One significant factor driving the Meiteis' demand for ST status is their inability to own land in the forested hill districts, where only STs are permitted to own land.
- Notably, this marks the first instance where members of the Meitei community are advocating for their inclusion in the ST list by contending that specific Kuki and Zomi tribes should not be part of it.
- This development may also have broader implications for the criteria used to designate groups as Scheduled Tribes, a framework that has remained unchanged since its introduction by the Lokur Commission in 1965.
Key Arguments in the Kuki-Zomi Delisting Proposal
- In Mr. Thounaojam’s representation, objections have been raised against the inclusion of three specific entries in the Scheduled Tribes (ST) list of Manipur namely, “Any Mizo(Lushai) Tribes,” “Zou,” and “Any Kuki Tribes.”
- The primary argument put forth for the exclusion of these entries is that they are not considered "indigenous" to the land of Manipur.
- According to the representation, there is no historical mention of these specific tribes residing in Manipur in pre-Independence Censuses.
- Furthermore, the representation contends that the vagueness surrounding the terms "Any Mizo (Lushai) Tribes" and "Any Kuki Tribes" in the ST list has purportedly facilitated illegal immigrants from Myanmar and Bangladesh in wrongfully obtaining benefits intended for Scheduled Tribes in India.
4. About Lokur Commission
The Lokur Commission, officially known as the Advisory Committee on the Revision of Lists of Scheduled Castes and Scheduled Tribes, played a significant role in shaping the landscape of tribal communities in India. Established in 1965 by the Government of India. Chaired by Justice N.N. Lokur, a former Chief Justice of India. Tasked with revising the lists of Scheduled Castes (SCs) and Scheduled Tribes (STs) in a rational and scientific manner.
Criteria for Scheduled Tribes:
- The Commission established five key criteria for identifying a community as an ST:
- Primitive Traits and Distinctive Culture
- Geographical Isolation
- Shyness of Contact with the Community at Large
- Backwardness
- Pre-dominantly Tribal Population
Impact on Tribal Communities
- The Lokur Commission's recommendations led to the addition of several new communities to the ST list, granting them access to educational and economic benefits reserved for STs.
- However, the criteria employed, particularly the emphasis on "primitive traits," have been criticized for being outdated, stereotypical, and potentially hindering social progress for tribal communities.
Criticisms and Debates
- The Commission's classification of certain communities as "primitive" has been challenged for being derogatory and inaccurate.
- The criteria used have been accused of being subjective and open to misinterpretation, leading to inconsistencies and exclusion of deserving communities.
- Debates continue regarding the need for revising or even abolishing the existing criteria altogether, with calls for a more nuanced approach based on social, economic, and cultural factors.
Legacy
- Despite the criticisms, the Lokur Commission's work remains influential in the administration of tribal affairs in India.
- Its report and recommendations form the basis for the current ST list and continue to be referenced in discussions about tribal inclusion and development.
- The Commission's legacy highlights the importance of ongoing discussions about the definition of "tribal" identity and the need for criteria that are fair, inclusive, and responsive to the evolving realities of tribal communities in India.
5. The National Commission for Backward Classes
The National Commission for Backward Classes (NCBC) stands as a crucial advocate for the rights and welfare of Other Backward Classes (OBCs) in India. Established in 1993 and elevated to constitutional status in 2018, the NCBC plays a multi-faceted role in ensuring social justice and equality for OBC communities.
Mandate and Responsibilities
- The NCBC probes cases of discrimination and denial of rights due to OBC status. It monitors the implementation of various government policies and schemes aimed at OBC development.
- The Commission regularly assesses the social, educational, and economic advancement of OBCs. It provides recommendations to the government on policies and programs to bridge existing gaps and address emerging challenges.
- Individuals from OBC communities can approach the NCBC with complaints related to violations of their rights or benefits. The Commission takes necessary action to address these grievances and ensure justice.
- The NCBC conducts research on the diverse OBC communities, analyzing their specific needs and vulnerabilities. It promotes awareness about OBC issues and advocates for their inclusive participation in various spheres of Indian society.
Key Achievements
- The NCBC played a significant role in implementing the Right to Education Act (2009) and ensuring reservation quotas for OBC students in educational institutions.
- The Commission has been instrumental in promoting entrepreneurship and skill development programs among OBC communities, leading to greater economic participation and self-reliance.
- The NCBC has consistently pushed for legislation and policy changes that benefit OBCs, such as reservations in government jobs and promotions, access to healthcare, and land rights.
Challenges and Future Directions
- OBCs are a diverse group with varying needs and levels of marginalization. The NCBC faces the challenge of addressing these internal disparities and ensuring inclusivity within its advocacy efforts.
- The Commission often operates with limited resources, hindering its ability to effectively reach out to remote OBC communities and conduct comprehensive research.
- Ensuring proper implementation of the NCBC's recommendations on the ground remains a crucial challenge. Stronger collaboration with state governments and local authorities is essential.
6. Examining Claims of Non-Indigeneity and Misuse
7. The Way Forward
The Kuki-Zomi delisting proposal in Manipur raises intricate questions about tribal identity, historical claims, and potential consequences for inter-community relations. Examining the arguments, historical context, and the role of institutions like the NCBC is essential for understanding the complexities of this issue and finding solutions that respect the rights and identities of all involved communities.
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For Prelims: kuki-zomi tribes, manipur, National Commission for Backward classes, STs, Lokur Commission, Other Backward Classes
For Mains:
1. Discuss the potential political and developmental implications of the proposed delisting. How might it affect land rights, access to resources, and inter-community relations in Manipur? (250 Words)
2. Assess the role of the National Commission for Backward Classes (NCBC) in addressing the complexities of tribal identity and ensuring social justice for marginalized communities. How can the NCBC be strengthened to better address issues like the Kuki-Zomi delisting proposal? (250 Words)
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Previous Year Questions
1. Who was appointed as the head of the OBC Sub-categorisation Commission?
(Maharashtra Talathi 2019)
A. Justice Geeta Mittal
B. Justice Manjula Chellur
C. Justice Tahilramani
D. Justice G. Rohini
2. Which of the following pairs of list and contents is/are correctly matched? (UPSC CAPF 2019)
1. State list Public health and sanitation
2. Union list Citizenship, naturalisation and aliens
3. Concurrent list Legal, medical and other
Select the correct answer using the code given below:
A. 1 only B. 1, 2 and 3 C. 2 and 3 only D. 3 only
Answers:1-D, 2- B
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Source: The Hindu
BRICS
1. Context
External Affairs Minister S. Jaishankar will represent India at a virtual summit of BRICS nations on Monday, the Ministry of External Affairs said here on Friday, announcing India’s participation in the meeting convened by Brazil President Lula da Silva to discuss tariffs imposed by the U.S
2. BRICS
- The BRICS alliance, composed of Brazil, Russia, India, China, and South Africa, has evolved from an economic consortium to a multifaceted geopolitical force.
- Emerging economies with considerable potential, these countries together form a collective that challenges traditional power dynamics and fosters cooperation in an increasingly interconnected world.
Formation and Evolution
- BRICS was officially established in 2006, with the objective of fostering economic growth, development, and cooperation among member nations.
- Over time, it has transformed into a platform for addressing a broader spectrum of global challenges, encompassing political, security, and social concerns alongside economic issues.
3.Push back against liberal international order
- A core principle in international relations is the absence of a central global authority. While nations may come to agreements on certain rules, there’s no global body with the power to universally enforce them. Scholars often refer to this as an “anarchic system”—not because it's chaotic, but because there is no supreme governing structure overseeing international conduct.
- States primarily pursue their national interests. Although collaboration between countries is possible, it tends to be unstable. Power dynamics are crucial—stronger nations usually assert their will, while weaker ones often have limited choices, echoing themes from the Melian Dialogue in Thucydides’ History of the Peloponnesian War. Global power is unevenly shared, and those who hold more influence often shape international norms to benefit themselves.
- Following World War II, the Western powers—led by the United States—established the liberal international order. This system, built through institutions like the IMF, World Bank, and WTO, mirrored Western ideals such as market liberalism, democratic governance, and the central role of the US dollar in global finance.
- This framework functioned effectively for the Western world for decades. However, in the current century, many countries are beginning to question the relevance of a system rooted in the post-1945 era.
- While rising nations like China, India, Brazil, and South Africa once accepted this order, they are now challenging it due to shifting economic power and the emergence of a multipolar world. The BRICS group has become the most prominent symbol of this growing resistance
4. De-dollarisation and global power shift
- One of the strongest themes to emerge from the BRICS summit in Brazil was the push toward de-dollarisation. While the term may sound technical, its implications are heavily political.
- This concept has been gaining momentum over the years, but recent developments—particularly the use of financial systems as tools for sanctions—have made it more urgent. Currently, global trade and finance rely heavily on the US dollar.
- For example, India typically pays in dollars when importing oil from Russia, Brazil often borrows in dollars, and China's overseas investments usually pass through dollar-based networks like SWIFT. This entrenched dependence grants the US both economic power and political influence.
- During the Brazil summit, BRICS nations revisited the proposal of creating a common currency—not as an immediate goal, but as a statement of direction. In the short term, they are encouraging trade using their own national currencies.
- Russia and China now conduct the majority of their bilateral trade in roubles and yuan. India has started settling some payments with countries like Iran and Sri Lanka in rupees, and has begun conducting oil transactions with the UAE in rupees and dirhams.
- The New Development Bank, established by BRICS, is also moving toward issuing loans in local currencies to minimize reliance on the dollar. This shift is not just about cutting transaction fees—it's about gaining independence from a financial system that many nations in the Global South feel is skewed against their interests.
- The path toward de-dollarisation will be challenging. The US dollar continues to dominate global finance due to its stability, global trust, and the strength of America’s financial infrastructure.
- However, the repeated calls by BRICS for alternatives reflect a growing dissatisfaction. While this transition won’t happen quickly, the direction is clear: reduce dependency on a system largely controlled by Washington
5. South-South Cooperation
- BRICS positions itself as a collective voice for nations that were excluded from shaping the global order established after World War II. It portrays itself as an advocate for the Global South, promoting equitable development, more inclusive trade frameworks, and the restructuring of major international institutions.
- Unlike the IMF or World Bank, the New Development Bank (NDB) provides financing without the usual political conditions. BRICS members are also collaborating on joint ventures in sectors like infrastructure and renewable energy.
- There have also been discussions about setting up a BRICS-led credit rating agency to reduce reliance on dominant Western agencies. The group consistently calls for changes to institutions such as the UN Security Council and the World Bank, aiming to amplify the influence of emerging economies.
- Within BRICS, countries like Brazil, India, and South Africa act as intermediaries. As democratic nations with expanding economies, they are often seen as relatable leaders among developing states.
- China contributes significant financial resources and geopolitical clout, while Russia, increasingly distanced from Western alliances, is seeking closer ties with non-Western countries.
- This drive to create new systems and mechanisms stems from a common dissatisfaction with a global order that many feel does not account for the realities and needs of the developing world. BRICS is not only advocating for policy reforms but also striving to reshape global perceptions of development and leadership
6. Geopolitical Relevance
- Counterbalance to Western Influence: BRICS serves as a counterweight to the dominance of Western powers. The coalition's diverse representation from different regions empowers non-Western countries to assert their interests on the global stage.
- Global South Unity: BRICS resonates with many countries in the Global South that seek a voice in international affairs. It presents an alternative to the traditional Western-dominated institutions, offering a platform for collaboration and advocacy.
7. Economic Cooperation and Growth
- Economic Powerhouses: Collectively, BRICS nations account for a substantial portion of the world's population and GDP. Their economic potential has led to discussions on reforming global financial institutions to better reflect contemporary realities.
- Intra-BRICS Trade: Trade among BRICS members has grown significantly. Initiatives like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) bolster financial cooperation and stability within the group.
8. Geopolitical Challenges and Opportunities
- Diverse Interests: As BRICS expands and diversifies, differing geopolitical interests may arise, potentially leading to internal divisions. However, this diversity also presents opportunities for creative solutions to global challenges.
- Diplomatic Outreach: BRICS engages with other regional and international organizations, strengthening its influence. The expansion of the group's membership underscores its growing geopolitical relevance.
9. India's Role and Beyond
- India's Diplomacy: India has played an active role within BRICS, emphasizing issues such as counter-terrorism, cybersecurity, and climate change. Its strategic partnerships contribute to the coalition's expansion and its influence in shaping its direction.
- Global Impact: BRICS expansion into a broader coalition incorporating West Asian countries like Egypt, Iran, Saudi Arabia, and the UAE signifies a deliberate shift towards greater global political relevance. This expansion highlights BRICS' adaptability to changing geopolitical dynamics.
10. BRICS New Members Dynamics
- Unanimous Decisions: BRICS decisions require unanimous agreement, reflecting collective decision-making.
- Geopolitical Partnerships: While Russia and China confront West-related challenges, Brazil, South Africa, and India maintain significant partnerships with the US and Europe.
- China's Expansion Drive: China spearheads BRICS expansion, prioritizing membership growth.
- Inclusion of Iran: China and Russia's influence is seen in Iran's inclusion, showcasing their collaboration.
- Mediation Efforts: China's role reconciles rivals Saudi Arabia and Iran within the alliance.
- Saudi Arabia's Shift: Saudi Arabia's entry signifies a move towards an independent foreign policy, diverging from the US alliance.
- Global Significance for Russia and Iran: BRICS membership elevates Russia and Iran's global partnerships, challenging Western dominance.
11. Implications for India
- Strategic Role: India played a lead role in drafting BRICS membership criteria, demonstrating its strategic influence within the alliance.
- Expanded Influence: The inclusion of new members who are strategic partners of India enhances its influence within BRICS.
- Geopolitical Balancing: BRICS expansion allows India to navigate between its ties with the West and its position within this non-Western coalition.
- Global Advocacy: With more representation and diverse members, India can push for UN reforms and increased Global South representation.
- Diplomatic Challenges: India might need to exert more effort to assert its influence in an alliance with a wider range of members and potential competing interests.
- Economic Opportunities: Collaboration with economically strong members like China can lead to enhanced trade and investment prospects for India.
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For Prelims: BRICS, Global South Unity, Western Influence, New Development Bank (NDB), and Contingent Reserve Arrangement (CRA).
For Mains: 1. Discuss the Implications of BRICS' Expansion for India's Geopolitical Positioning and Influence within the Alliance.
2. Analyze India's Role in Shaping BRICS' Membership Criteria and Its Strategic Significance in the Expanded Coalition.
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Previous year Questions1. With reference to a grouping of countries known as BRICS, consider the following statements: (UPSC 2014)
1. The First Summit of BRICS was held in Rio de Janeiro in 2009.
2. South Africa was the last to join the BRICS grouping.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: B
2. With reference to BRIC countries, consider the following statements: (UPSC 2010)
1. At present, China's GDP is more than the combined GDP of all three other countries.
2. China's population is more than the combined population of any two other countries.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: A
3. The 'Fortaleza Declaration', recently in the news, is related to the affairs of (UPSC 2015)
A. ASEAN
B. BRICS
C. OECD
D. WTO
Answer: B
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Source: The Hindu
GOODS AND SERVICE TAX (GST)
1. Context
India’s economic journey has always been shaped by bold reforms, and the latest set of Goods and Services Tax (GST) measures announced at the 56th GST Council meeting on September 3, 2025, may well prove to be one of the most consequential yet. For years, businesses and policymakers alike have called for simplification, predictability, and fairness in India’s indirect tax regime.
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
INDIA-US
1. Context
Since the India-US bilateral chill set in on August 6, when US President Donald Trump announced an additional 25% tariff as a penalty for India’s purchase of Russian oil, the first tentative sign of a possible thaw came — exactly a month to date.
2.India-US Relationship
- India and the United States has been multifaceted and has evolved over the years. It covers various areas such as strategic, economic, technological, and cultural cooperation.
- India and the United States have developed a strategic partnership, marked by regular high-level diplomatic engagements and cooperation on regional and global issues. Both countries share common values such as democracy and a commitment to a rules-based international order
- Defense and security ties between India and the U.S. have strengthened. Both countries participate in joint military exercises, and there is ongoing collaboration in defense technology and procurement. The Logistics Exchange Memorandum of Agreement (LEMOA) and the Communications Compatibility and Security Agreement (COMCASA) are examples of agreements aimed at enhancing defense cooperation.
- Economic ties have expanded, with both countries being significant trade partners. Bilateral trade has increased, and efforts have been made to address trade imbalances. The U.S. has been a major source of foreign direct investment (FDI) in India, and both sides have expressed interest in further deepening economic collaboration.
3. Key Elements of Partnerships of India-US
3.1.Technology partnership
- Micron Technology, in collaboration with the backing of the India Semiconductor Mission, plans to allocate over $800 million for the establishment of a new semiconductor assembly and test facility in India, contributing to a total investment of $2.75 billion. Additionally, Applied Materials is set to construct a Semiconductor Centre for Commercialization and Innovation in India, aimed at enhancing the diversification of the semiconductor supply chain between the two countries. Simultaneously, Lam Research intends to facilitate the training of 60,000 Indian engineers through its "Semiverse Solution," aligning with India's objectives for accelerated semiconductor education and workforce development
- India has recently joined the Minerals Security Partnership (MSP) led by the United States, aimed at expediting the establishment of robust and sustainable global supply chains for critical energy minerals. Commencing in June 2022, MSP already includes 12 other partner nations and the European Union. As part of this collaboration, Epsilon Carbon Limited from India is set to inject $650 million into the creation of a greenfield facility for electric vehicle battery components, marking the most substantial Indian investment to date in the U.S. electric vehicle battery sector.
- India and the United States have initiated collaborative efforts through public-private Joint Task Forces dedicated to the advancement and implementation of Open RAN systems, as well as the progress of advanced research and development in telecommunications. The joint leadership of India's Bharat 6G and the U.S. Next G Alliance in this public-private research endeavour is aimed at diminishing expenses, enhancing security, and fortifying the resilience of telecommunication networks.
- India has officially endorsed the Artemis Accords, aligning itself with 26 other nations dedicated to fostering peaceful, sustainable, and transparent collaboration for the exploration of celestial bodies such as the Moon, Mars, and beyond. In a significant development, NASA is set to offer advanced training to astronauts from the Indian Space Research Organization (ISRO), with the objective of initiating a joint mission to the International Space Station in 2024. Furthermore, NASA and ISRO are actively working on establishing a strategic framework for cooperation in human spaceflight, with plans to finalize the agreement by the conclusion of 2023.
- A collaborative effort has been instituted by both nations through the creation of a Joint Indo-US Quantum Coordination Mechanism. This mechanism is designed to streamline cooperative research endeavors involving the public and private sectors in both countries. Additionally, they have formalized an implementing arrangement to bolster joint research initiatives focusing on quantum technologies, Artificial Intelligence (AI), and advanced wireless technologies.
- The National Science Foundation of the United States has disclosed 35 collaborative research projects in conjunction with India's Department of Science and Technology. Additionally, a fresh cooperative agreement has been formalized between the U.S. National Science Foundation and India's Ministry of Electronics and Information Technology, specifically targeting emerging technologies
- Sterlite Technologies Limited of India has committed a $100 million investment towards establishing a manufacturing facility for optical fiber cables in close proximity to Columbia, South Carolina. This initiative is expected to support annual optical fiber exports from India amounting to $150 million
3.2.Defence Partnership
- The Joint Statement expressed approval for the innovative proposal put forth by General Electric to collaboratively manufacture the F414 jet engine in India. General Electric and Hindustan Aeronautics Limited (HAL) have formalized a Memorandum of Understanding (MoU), and a manufacturing license agreement has been presented for Congressional Notification. This unprecedented initiative, marking the first time F414 engines will be produced in India, is poised to facilitate a more extensive transfer of U.S. jet engine technology than previously experienced
- India has plans to acquire armed MQ-9B SeaGuardian Unmanned Aerial Vehicles (UAVs), aiming to enhance the country's intelligence, surveillance, and reconnaissance capabilities
- The U.S. Navy has finalized a Master Ship Repair Agreement (MSRA) with Larsen and Toubro Shipyard in Kattupalli (Chennai) and is in the process of completing agreements with Mazagon Dock Limited (Mumbai) and Goa Shipyard (Goa). These arrangements will permit U.S. Navy vessels to undergo maintenance and repair at Indian shipyards during their voyages.
- The inauguration of the India-US Defence Acceleration Ecosystem (INDUS-X) took place on June 21, 2023. This network involves participants from universities, incubators, corporations, think tanks, and private investors. The program is designed to foster collaborative innovation in defense technologies and expedite the integration of India's private sector defense industry with its U.S. counterpart
3.3. Cooperation in the Indo-Pacific
Titled 'Taking the Lead on the Global Platform,' the Joint Statement highlights several strategic actions undertaken by the two nations.
- Indo-Pacific and Indian Ocean: The United States will become a participant in the Indo-Pacific Oceans Initiative, a regional effort initiated by Prime Minister Modi in 2015 to ensure a secure, stable maritime environment and advocate for its conservation and sustainable utilization. India will maintain its role as an observer in the Partners in the Blue Pacific. The U.S. and India plan to conduct an Indian Ocean Dialogue involving experts and stakeholders from the broader Indian Ocean region to enhance regional coordination.
3.4.Sustainable development
- India and the United States will persist in their collaborative efforts to meet their individual climate and energy objectives. The United States appreciates India's commitment to jointly spearhead the Hydrogen Breakthrough Agenda, a multinational initiative aimed at making affordable renewable and low-carbon hydrogen accessible worldwide by 2030
- The Joint Statement underlines the mutual dedication of both nations to establishing inventive investment frameworks. These frameworks aim to reduce the capital costs and draw substantial international private financing for projects related to renewable energy, battery storage, and emerging green technologies in India. Additionally, the statement acknowledges efforts to decarbonize the transportation sector and highlights India's establishment of the Global Biofuels Alliance, in which the U.S. is a founding member
3.5.Initiatives on health
- The U.S. National Cancer Institute is set to encourage cooperation between American and Indian scientists through two recently awarded grants. These grants aim to create an Artificial Intelligence (AI)-enhanced digital pathology platform for purposes such as cancer diagnosis, prognosis, and forecasting therapeutic outcomes. Additionally, the grants will support the development of AI-driven automated radiotherapy treatment specifically for cervix, head, and neck cancers.
- The U.S. National Institute of Diabetes and Digestive and Kidney Diseases is poised to enter into an agreement with the Indian Council of Medical Research. This collaboration aims to advance research in the realms of basic, clinical, and translational studies on diabetes. Additionally, the United States and India are set to convene a US-India Cancer Dialogue, facilitated by President Biden's Cancer Moonshot initiative. This dialogue will serve as a platform for experts from both countries to identify specific areas of collaboration, accelerating the pace of progress in the fight against cancer.
3.6.Fighting terror and drugs
- The Joint Statement reaffirmed the commitment of the United States and India to jointly combat global terrorism, condemning terrorism and violent extremism in all its forms. President Biden and Prime Minister Modi reiterated the need for concerted action against UN-listed terrorist groups, including al-Qa’ida, ISIS/Daesh, Lashkar e-Tayyeba (LeT), Jaish-e-Mohammad (JeM), and Hizb-ul-Mujhahideen.
- They strongly denounced cross-border terrorism and the use of terrorist proxies. The leaders called on Pakistan to take immediate action to prevent any territory under its control from being used for launching terrorist attacks. Additionally, they urged for the perpetrators of the 26/11 Mumbai and Pathankot attacks to be brought to justice.
4. Way forward
India and the U.S. often collaborate on various global and regional challenges, including United Nations initiatives, counterterrorism efforts, and regional stability.
Source: Indianexpress
PROJECT TIGER
1. Context
A special annual survey undertaken by the forest department of Uttarakhand to estimate the number of tigers in the Ramnagar division, adjoining Corbett Tiger Reserve, has shown a sharp jump over three years
2. About Project Tiger
- The Government of India launched "Project Tiger" on 1st April 1973 to promote the conservation of the tiger.
- Project Tiger has been the largest species conservation initiative of its kind in the world.
- While the field implementation of the project, protection and management in the designated reserves is done by the project States, who also provide the matching grant to recurring items of expenditure, deploy field staff/officers and give their salaries, the Project Tiger Directorate of the Ministry of Environment and Forests was mandated with the task of providing technical guidance and funding support.
3.Origin of Project Tiger
- In 1972, India implemented the Wildlife (Protection) Act (WLPA), which established 'National Parks' within designated forests, transferring the rights of forest-dwellers to the State government. It also introduced 'Wildlife Sanctuaries' where limited rights could be exercised. The launch of Project Tiger stemmed from these changes.
- Initially, there were nine tiger reserves spanning 9,115 sq. km in 1973. Presently, there are 54 reserves across 18 States, covering 78,135.956 sq. km. Critical Tiger Habitats (CTH) make up 26% of National Parks and Wildlife Sanctuaries, totaling 42,913.37 sq. km. As of 2022, data from camera-trap methods estimated the tiger population in India to be between 3,167 to 3,925.
- The creation of CTHs aimed to allocate specific forest areas for tiger-centric initiatives. These areas were accompanied by Buffer Areas, a blend of forest and non-forest land. However, the 'fortress conservation' approach, despite its inclusive agenda for the Buffer Area, led to the displacement of people who had coexisted with tigers for generations
4. What is Critical Wildlife Habitat’ (CWH)?
A 'Critical Wildlife Habitat' (CWH) refers to a specific area within a protected region or sanctuary that is identified and demarcated for the conservation and protection of a particular wildlife species or multiple species.
These areas are recognized for their crucial importance in providing habitats, breeding grounds, or essential resources necessary for the survival and well-being of endangered or vulnerable wildlife populations. CWH designations aim to ensure the preservation of these habitats and their ecological balance by implementing stricter conservation measures and regulations to safeguard the wildlife within those areas
5. Tiger Task Force
- The implementation of Project Tiger over the years has highlighted the need for a statutory authority with legal backing to ensure tiger conservation.
- Based on the recommendations of the National Board for Wild Life Chaired by the Hon'ble Prime Minister, a Task Force was set up to look into problems of tiger conservation in the country.
- The recommendations of the said Task Force, interalia include strengthening Project Tiger by giving it statutory and administrative powers, apart from creating the Wildlife Crime Control Bureau.
- It has also been recommended that an annual report should be submitted to the Central government for laying in Parliament, so that commitment to Project Tiger is reviewed from time to time, in addition to addressing the concerns of local people.
Broadly the urgent recommendations of the said Task Force are
- Reinvigorating the constitution of governance.
- Strengthening efforts towards the protection of tigers, checking to poach, convicting wildlife criminals and breaking the international trade network in wildlife body parts and derivatives.
- Expanding the undisturbed areas for tigers by reducing human pressure.
- Repair the relationship with local people who share the tiger's habitat by fielding strategies for coexistence.
- Regenerate the forest habitats in the fringes of the tiger's protective enclaves by investing in forest, water and grassland economies of the people.
6. National Tiger Conservation Authority (NTCA)
- Considering the urgency of the situation, Project Tiger has been converted into a statutory authority (NTCA) by providing enabling provisions in the Wild Life (Protection) Act, 1972 through an amendment, viz. Wild Life (Protection) Amendment Act, 2006.
- This forms one of the urgent recommendations of the Tiger Task Force appointed by the Prime Minister.
- The NTCA addresses the ecological as well as administrative concerns for conserving tigers, by providing a statutory basis for the protection of tiger reserves, apart from providing strengthened institutional mechanisms for the protection of ecologically sensitive areas and endangered species.
- The Authority also ensures enforcing guidelines for tiger conservation and monitoring compliance of the same, apart from the placement of motivated and trained officers having good track records as Field Directors of tiger reserves.
- It also facilitates capacity building of officers and staff posted in tiger reserves, apart from a time-bound staff development plan.
- The Wild Life (Protection) Amendment Act, 2006 has come into force with effect from the 4th of September, 2006 and the NTCA has also been constituted on the same date.
For Prelims & Mains
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For Prelims: Project Tiger, Tiger Task Force, Wild Life (Protection) Act, 1972, Wild Life (Protection) Amendment Act, 2006, Global Tiger Summit, National Tiger Conservation Authority,
For Mains:
1. Discuss the Role of the National Tiger Conservation Authority in increasing the tiger population in India. Explain the significance of the Tigers in the Ecosystem. (250 Words)
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Previous Year Questions
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1. The term ‘M-STRIPES’ is sometimes seen in the news in the context of (UPSC 2017) (a) Captive breeding of Wild Fauna (b) Maintenance of Tiger Reserves (c) Indigenous Satellite Navigation System (d) Security of National Highways Answer: (b) 2. Consider the following statements: (UPSC 2014) 1. Animal Welfare Board of India is established under the Environment (Protection) Act, of 1986.
2. National Tiger Conservation Authority is a statutory body.
3. National Ganga River Basin Authority is chaired by the Prime Minister.
Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 2 only (d) 1, 2 and 3 Answer: (b) 3. Which one of the following is the well-publicized wildlife campaign in the world launched in 1973? (BPSC 2023) 1. Sunderbans 2. Project Project 3. Tiger Lion Project 4. More than one of the above 5. None of the above Answer: 2 |
Source: Tigernet.nic.in
