Goods and Services Tax (GST) is a significant milestone in the history of the Indian economy. By absorbing multiple taxes under a single, unified and uniform tax regime, GST has greatly simplified the taxation system in India. Since current affairs and Indian economy form an important part of the UPSC syllabus, recent economic reforms and policies occupy a major chunk of civil services examination.
The recent structural reforms introduced in GST system, popularly known as GST 2.0, have further eased the tax burden on the common man, enhanced compliance and transparency,facilitated rate rationalisation and ease of living and has boosted consumption. Among the major reforms are simplification of important tax slab structures and reduction in tax burden for several goods and services. The earlier four-tier tax slab-structure of 5%, 12%, 18% and 28% have been rationalized two-tier tax system comprising only 5% and 18%. The 5% tax slab would be applicable essentially for essential and common-use items like dairy, packaged foods (that includes butter, ghee, cheese, snacks, dry fruits, nuts), items for personal care (including hair, shampoo, soap, toothpaste), household goods (kitchenware, utensils, bicycles), agricultural goods (fertilisers, agricultural machinery), health products (diagnostic kits, reagents and other medical apparatuses) and renewable energy equipment (solar panels and other renewable equipments). Under the 18% slab, goods and services that are included are automobiles, consumer durables and batteries. Life and health insurance premiums are exempted from GST taxation while the compliance burden for MSMEs and small businesses has been significantly reduced.
Besides these structural reforms, GST 2.0 has also simplified the current tax regime through AI- integration. It is aimed at reducing compliance burden and increase transparency and trust within the economic system. GST has introduced AI machine learning modules for real-time detection of fake invoices, automated cross-verification of buyers and suppliers and risk-profiling of tax-payers. The government has also simplified the process of e-invoicing by expanding it to all major businesses that will enable mandatory real-time authentication of all e-invoices, automatic ITC computation and real-time monitoring of business transactions. Goods and Services Tax Network (GSTN) has leveraged AI technology to improve compliance, efficient data management and increase customer reliability. The leveraging of API (Application programming Interface) for e-invoicing by the GSTN has made the system automated, integrated and real-time.
GST 2.0 is critical and relevant for UPSC exams because it directly impacts national economic policy, social welfare, citizen-focused governance and society at large. Simplifying tax burdens, rationalizing rates, increased revenue real-time sharing of taxpayer data, joint ownership of GSTN and co-ownership of fiscal tax infrastructure have strengthened cooperative federalism, a hot topic in the civil services exam. The exam puts greater emphasis on current affairs and contemporary issues. It tests a student’s general awareness of social, political and economic issues that shape and influence the national policy of the country. One of the major demands of an essay-type answer is citing relevant examples to support one’s arguments. The examples must be drawn from contemporary socio-poilitical scenario, contemporary case studies and current data and GST forms the backbone of any ideal answer to question asked on the topic of Indian economy. Interviews too focus on a candidate’s knowledge about general affairs including recent government policies and initiatives which is a pre-requisite for the prestigious position of a civil servant. Since a civil servant plays an important role in policy-making and decision-making process, knowledge about GST and related concepts become all the more important for a UPSC aspirant.
Our new book, “GST Ki Yatra: Tax Terror to Bachat Utsav”, co-authored by Shehzad Poonawalla and Deepak Agarwal, presents a comprehensive, data-driven and citizen-centric narrative evolved from a complex tax regime to a simple, transparent and citizen-friendly technology-driven system. This book is equipped with infographics, charts and tables that facilitates visual storytelling and conceptual clarity. It makes a comparative analysis between the previous tax rates with present taxation reforms. It explains in great detail how the GST 2.0 reforms have benefitted the middle class through facilitating ease of living. This book wil not only reduce the reliance on alternative sources of UPSC preparation, but will also offer fresh insights into the journey chronicling the transformation that helped GST connect with broader public and economic welfare initiatives. It explains how GST 2.0 is a step towards fulfilling the vision of “One Nation, One Tax, One Market” and provides the foundation for the collective dream of an “Atmanirbhar Bharat”.
Grab your copies of “GST Ki Yatra: Tax Terror to Bachat Utsav” by Shehzad Poonawalla and Deepak Aggarwal and published by Dhisha Publication.
