The Goods and Services Tax (GST) Day is observed annually on July 1, in India.
Key Facts
GST Day is observed to commemorate the implementation of Goods and Services Tax (GST).
GST Day was first observed on July 1, 2018 marking the one-year anniversary of implementation of the new tax regime.
When was GST launched?
GST was launched on intervening night of June 30 and July 1, 2017, in a ceremony held in the central hall of Parliament.
GST had replaced the old indirect tax regime in India.
It was introduced with the idea of “One Nation- One Market- One Tax”.
Year 2022 marks the fifth anniversary of GST.
What is GST?
GST is an indirect, multi-stage, consumption-based tax system. It subsumes several domestic indirect taxes like service tax, purchase tax, value-added tax, excise duty, and others under one head. However, items including petroleum, liquor, and stamp duty have not been added to GST. These items follow the old tax system.
Background
Idea to launch a new tax regime came into existence, when a committee was set up in 2002 to draft GST laws. This committee submitted its report in 2004. Later in 2006, finance minister proposed to introduce GST on April 1, 2010. It took more than 17 years for GST laws to come into force.
Three taxes under GST
There are three taxes application under the GST namely, CGST, SGST, and IGST. Central government collects CGST on intra-state sale on the other hand, SGST is collected by state government on intra-state sale. Central government collects IGST on an inter-state sale.
Tax Slabs under GST
Currently, there are four tax slabs under GST viz. 5 %, 12 %, 18 %, and 28 %.
Objectives of GST laws
Main objective of GST laws is to eliminate the cascading effect of taxes. It is also aimed at expanding the base of taxpayer in India by simplifying taxation process.
The Asia Pacific Sustainability Index 2021 was recently launched by Knight Frank, which is a Global property consultant.
Highlights
In the index, four Indian cities viz., Bengaluru, Hyderabad, Delhi, and Mumbai, have been ranked among top 20 sustainable cities.
In it, 36 cities were ranked on the basis of urbanisation pressure, carbon emissions, climate risk, and government initiatives.
Rank of World’s cities
Index has been topped by Singapore.
It is followed by Sydney, Wellington, Perth, and Melbourne.
These are the top five green-rated cities in commercial real estate in Asia-Pacific region.
Rank of Indian cities
Among the Indian cities, Bengaluru was ranked first. While in the Asia-Pacific region, it has been ranked 14th.
Bengaluru is the only Indian city to achieve ‘Gold’ standard category.
Bengaluru is followed by Delhi, which has been ranked 17th in the ASIA Pacific Region.
Hyderabad has been ranked 3rd in India and 18th in Asia-Pacific region.
Mumbai is ranked 4th among Indian cities and 20th in Asia-pacific region.
What is the reason of growth of sustainable development in India?
Sustainable Development in India have been propelled due to new market dynamics. Global commitment towards carbon neutrality and net zero focus on creating environmentally friendly premises. This has led Indian developers to develop their products to meet the requirements.
Green Bond in India
As per report, green bond issuances in India have increased by 523% on yearly basis. It was USD 1.1 billion in 2020 and has increased to USD 6.8 billion in 2021. Currently, India has become the sixth-largest country in Asia-Pacific region, with respect to total amount of green bonds issued in 2021.
Green Bond Issuance in Asia-Pacific Region
As per estimates of Climate Bonds Initiative, in 2021 the region issued USD 126 billion in green bonds. China accounted for largest amount of USD 68 billion.
The World Bank Board of Executive Directors approved two complementary loans of USD 500 million each, for supporting and enhancing India’s health sector.
Key Facts
The financing of USD 1 billion by World Bank will support the “Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM)” scheme of India.
This scheme was launched in October 2021, for improve public healthcare infrastructure across India.
One of the loans will prioritize seven states including Andhra Pradesh, Meghalaya, Punjab, Kerala, Odisha, Uttar Pradesh and Tamil Nadu.
India’s health performance
As per world bank’s estimate, India’s health performance has improved over time.
Life expectancy in India was at 69.8 in 2020 as opposed to 58 in 1990. It is higher than the average for the India’s income level.
Under-five mortality rate (36 per 1,000 live births), maternal mortality ratio (103 per 100,000 live births) and infant mortality rate (30 per 1,000 live births), are nearly equal to average for income level.
What are the two loans?
The two loans namely, Enhanced Health Service Delivery Program (EHSDP) and Public Health Systems for Pandemic Preparedness Program (PHSPP) have been designed to be complementary and transformational. These loans will support Government’s reform agenda of accelerating universal coverage, increasing the resilience & preparedness and improving quality of India’s health system. Both of these programmes provide unique strengths to central & state governments in supporting the development of high-quality, accessible and affordable health services.
PHSPP’s support
This programme will support:
India’s surveillance system in detecting and reporting epidemics of potential international concern. It will ensure rapid response, as well as prevent emergence of pathogens.
India’s capacity of detecting pathogens, including zoonotic diseases.
It will build institutional capacity and strengthen coordination of core public health institutions, in a bid to implement program and deliver high-quality results.
EHSDP’s support
EHSDP programme will strengthen service delivery by a redesigned primary health care model.
On June 29, 2022, the United Nations published its report titled “Habitat World Cities Report 2022”.
Key Points of the report
The UN-Habitat World Cities Report 2022 highlights that, rapid urbanisation in India was delayed temporarily due to covid-19 pandemic.
Urban population in India is estimated to reach at 675 million in 2035. It will be the second highest figure, behind China’s one billion.
After covid-19 pandemic, global urban population is growing again. It will grow by another 2.2 billion by 2050.
India’s urban population is likely to reach 675,456,000 in 2035, as compared to 483,099,000 in 2020.
Percentage of population in urban areas pf India will be 43.2 percent, by 2035.
Global Scenario
Urban Population in China is estimated to reach at 1.05 billion in 2035.
Urban population in Asia will increase to 2.99 billion in 2035.
Big economies such as China and India account for large share of the world’s population. Development trajectories across these countries have influenced global inequality.
In last two decades, India and China experienced rapid urbanisation and economic growth. As a result, number of people living in poverty reduced.
Natural Growth in Population
As per report, in lower income countries, existing urban populations continuing to increase naturally with increasing birth rates. Urban population is expected to grow from 56 per cent of world’s total in 2021 to 68 per cent by 2050.
Impact of covid-19 pandemic
As per report, large scale flight from major cities to smaller town, amid COVID-19 pandemic, was a short-term response. It will not hinder the course of global urbanisation.
Urban poverty and inequality
According to report, urban poverty and inequality are the most intractable and highly complex problems. Overcrowded slums in Mumbai, Nairobi, Rio de Janeiro, chronic homelessness in London etc highlights that, tackling urban poverty and inequality are key priorities to building inclusive and equitable urban futures.
On June 30, 2022, Prime Minister Narendra Modi participated in ‘Udyami Bharat’ programme.
Key Facts
On the occasion, he launched following key initiatives:
Raising and Accelerating MSME Performance(RAMP) scheme
Capacity Building of First-Time MSME Exporters(CBFTE) scheme
New features of Prime Minister’s Employment Generation Programme (PMEGP) to boost the MSME sector.
He also transferred the assistance to beneficiaries of PMEGP, digitally, for 2022-23.
He announced results of MSME Idea Hackathon, 2022 and distributed National MSME Awards, 2022.
Digital Equity Certificates were also issued to 75 MSMEs in Self Reliant India (SRI) Fund.
About RAMP scheme
The Raising and Accelerating MSME Performance(RAMP) scheme was launched with an outlay of around Rs 6000 crore.
It is aimed at scaling up the coverage and implementation capacity of MSMEs across the states, along with the impact enhancement of existing MSME schemes.
RAMP will complement the Aatmanirbhar Bharat Abhiyan, by encouraging innovation, ideation, entrepreneurship, improving practices & process, incubating new business by developing quality standards, enhancing market access, deploying technological tools and Industry 4.0 for making MSMEs competitive and self-reliant.
About CBFTE Scheme
The Capacity Building of First-Time MSME Exporters (CBFTE) scheme aims to encourage MSMEs for offering products and services of international standards to global market. It will also enhance the participation of Indian MSMEs at international value chain. CBFTE will help them in realising their export potential.
New features of the PMEGP
New features of Prime Minister’s Employment Generation Programme (PMEGP) include:
Increase in maximum project cost from Rs 25 lakhs to Rs 50 lakhs for manufacturing sector
For service sector, it has increased from Rs 10 lakhs to Rs 20 lakhs.
MSME Idea Hackathon, 2022
The Hackathon was organised with the aim of promoting and supporting the untapped creativity of individuals and promoting latest technologies & innovation among MSMEs.
National MSME Awards 2022
The award recognises the contributions of MSMEs, Aspirational Districts, states/UTs, and Banks for their outstanding performance in terms of growth and development of MSME sector in India.
47th GST Council Meeting was held in Chandigarh. In a two-day meeting GST Council recommended rate changes on certain items. These changes will be made effective from July 18, 2022.
Recent Rate Changes
GST on ink, lights, LED lamps and metal printed circuit board has been hiked to 18% from earlier 12%.
GST rate on solar water heaters and systems has been hiked to 12% from 5%.
Rate on job work associated with manufacturing of leather goods and footwear has been increased to 12%.
Rate on works contract for roads, railways, metro, bridges, crematorium effluent treatment plant is increased to 18%.
GST Council has decided to rationalise tax rates on certain goods and services to remove an inverted duty structure.
Rate on petroleum and coal bed methane is raised to 12% from 5%.
GST Council proposed to levy 28% GST on casinos, horse racing, online gaming, and lottery was deferred. This issue will be taken in next meeting.
GST Council
It is a constitutional body under Article 279A of the Indian constitution.
It was introduced by the Constitution (One Hundred and First Amendment) Act, 2016.
The GST Council is chaired by the Union Finance Minister.
Other members are the Union State Minister of Revenue or Finance and Ministers in-charge of Finance or Taxation of all the States.
It makes recommendations to the Union and State Government on issues related to Goods and Service Tax.
Every decision of GST Council is to be taken by a majority of not less than three-fourths of the weighted votes of the members present.
Central government’s vote has a weightage of one-third of total votes cast, while the votes of state governments all together have a weightage of two-thirds of total votes cast in the meeting.
India Forum for Nature-Based Solutions was launched at the 11th World Urban Forum in Poland. The forum was collectively launched by National Institute of Urban Affairs (NIUA), World Resources Institute India (WRI India), Climate Centre for Cities (NIUA C-Cube), and their partners launched India Forum for Nature-Based Solutions.
Highlights
It is India’s first national coalition platform for urban nature-based solutions (NbS).
It has been launched under Cities4Forest initiative.
It is aimed at creating a collective of NbS entrepreneurs, like-minded organizations and government entities to help in scaling urban nature-based solutions by:
Defining a shared language and by communicating benefits that caters to actions at the local level including scaling up of existing NbS interventions.
Creating awareness about urban ecosystem-based services and nature-based solutions in India through informing policy, plans and project interventions.
Driving investment and promoting delivery mechanisms with coordination from multi-stakeholder.
Nature Based Solutions (NbS)
As per IUCN, NbS are defined as “actions to protect, sustainably manage, and restore natural or modified ecosystems, that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits.”
Cities4Forests Initiative
It is voluntary grouping of more than 60 cities from around the world involving mayors’ offices and other city agencies such as public water utilities and offices of sustainability.
It aims at supporting cities around the world to recognize their interdependence with the world’s forests, and use their own political, economic, and cultural power to ensure forest health and vitality.
The Cities4Forests initiative helps cities around the world connect with and invest in inner forests (such as city trees and urban parks), nearby forests (such as green corridors and watersheds) and faraway forests (such as tropical and boreal forests).
Three Indian cities under this initiative are-Mumbai, Hyderabad and Kochi.
World urban forum (WUF)
United Nations had established WUF in 2001 to examine the problem of rapid urbanisation and its impact on communities, economies, climate change, cities, and policies. The first WUF was held in 2002, in Nairobi, Kenya. It is being held since then. It is co-organised by UN-Habitat, Municipal Office of Katowice and Ministry of Development Funds and Regional Policy of Poland.
The Indian Space Research Organisation (ISRO) launched PSLV-C53 mission from Sri harikota, Andhra Pradesh. It carried three satellites from Singapore.
Highlights
PSLV-C53 is the second dedicated commercial mission of the space agency’s commercial arm NewSpace India Limited (NSIL).
PSLV-C53 successfully injected the satellites at an altitude of 570 km with 10-degree inclination.
The four-stage, 44.4-metre-tall rocket had a lift-off mass of 228.433 tonnes.
This was the ISRO’s 55th mission of PSLV.
The launch vehicle has carried three satellites – DS-EO, a 365 kg and NeuSAR, a 155 kg satellite and 2.8 kg Scoob-1 satellite.
DS-EO carries an Electro-Optic, multi-spectral payload which will provide full colour images for land classification, and for serving humanitarian assistance and disaster relief needs.
NeuSAR satellite will provide images in day and night and under all weather conditions.
The Scoob-I satellite is the first satellite in the Student Satellite Series (S3-I), which is a hands-on student training programme.
New Space India Limited (NSIL)
NSIL is a Central Public Sector Enterprise of the Government of India. It functions as the commercial arm of ISRO. It is headquartered at Bengaluru. NSIL was established in 2019 and is working under the administrative control of the Department of Space. It has the responsibility to enable Indian industries to take up high technology space related activities. It deals with capacity building of local industries for space manufacturing
ISRO- Key Facts
ISRO is the space agency under the Department of Space of Government of India.
It was formed in 1969.
ISRO replaced its predecessor, INCOSPAR (Indian National Committee for Space Research) which was established in 1962.
Cabinet has approved computerisation of primary agricultural credit societies (PACS) with total outlay of 2516 crore rupees.
Highlights
The project has proposed computerization of about 63,000 functional PACS over a period of five years.
The project focuses on improving efficiency of PACS, bringing transparency and accountability in their operations.
Out of total budget outlay of 2,516 crore, Government of India share will be of 1,528 crore.
It will fulfil the aim of financial inclusion and also strengthen service delivery to farmers especially small and marginal farmers (SMFs).
It will become delivery point for various services and provision of inputs like fertilizers, seeds etc.
The project will help in making PACS as outlets for banking activities and also non-banking activities.
It will also prove beneficial in improving digitalisation in rural areas.
About PACS
It is smallest unit in cooperative sector which works with farmers and aim at development of rural economy.
PACS account for 41% (3.01 crore farmers) of the kisan credit card (KCC) loans given by all entities in the country and 95% of these KCC loans (2.95 crore farmers) through PACS are to the small and marginal farmers.
Primary Agricultural Cooperative credit societies (PACS) is the lowest tier of the three-tier short-term cooperative credit (STCC).
The other two tiers i.e State Cooperative Banks (SCBs) and District Central Cooperative Banks (DCCBs) already work on Common Banking Software (CBS).
Kisan Credit Card (KCC) Scheme
The Kisan Credit Card (KCC) scheme was launched in 1998. It is aimed at providing credit support from the banking system under a single window with flexible and simple procedure to the farmers for their cultivation and other services such as purchase of agriculture inputs including seeds, fertilizers, pesticides etc. It also allow them to take cash for their production needs.
Defence Research and Development Organisation (DRDO) successfully flight-tested Abhyas, which is a high-speed expendable aerial target (HEAT). This was flight-tested from Integrated Test Range (ITR) in Chandipur, off the Bay of Bengal coast in Odisha.
Highlights
Abhyas has been designed and developed by Aeronautical Development Establishment (ADE), of DRDO.
The test demonstrated the performance at low altitude including sustained level & high manoeuvrability.
It has been designed for autonomous flying with the help of an autopilot system onboard.
Features
It is powered by a small gas turbine engine to sustain a long endurance flight at high subsonic speed.
It is equipped with Micro-Electromechanical Systems-(MEMS) based Inertial Navigation System along with the flight control computer for guidance and control.
Abhyas system is equipped with radar cross-section (RCS) and infrared signatures which can be used to simulate aircrafts for the practice of anti-aircraft warfare and also for the testing designed to aim aerial targets.
About Aeronautical Development Establishment (ADE)
Aeronautical Development Establishment is an Aeronautical Systems Design House involved in the design and development of the Unmanned Aerial Vehicles (UAVs) and Aeronautical Systems and technologies to meet the requirements of the Indian Armed forces. Major R&D activities are in the areas of Unmanned Aerial Vehicles, Pilotless target aircraft, Flight simulators, Air Weapons and Flight control systems.
About DRDO
It was established in 1958 with a mission to Design, develop and lead to production state-of-the-art sensors, weapon systems, platforms and allied equipment for our Defence Services. Dr G Satheesh Reddy is the current chairman of DRDO.