Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.
*In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.
For the philosophy of AWE and payment, check here: Click2Join
If you are already on Habitat, you don’t need to register again. Discussions will take place on General group. See you at 8:00 pm today. Others follow these steps:
Ask your doubts in the comments below. You can call us at 8929987787.
What is Ethics Masterclass?
Ethics Masterclass is a mentor-driven holistic course for GS Paper 4, i.e. Ethics, Integrity, and Aptitude, by Civilsdaily.
Why Ethics Masterclass?
Paper 4 aka Ethics is the most dynamic General studies paper out of the lot. There is no “ONE WAY approach” in ethics. This is an effort to combine the Habitat discussion session with Video lectures to provide a complete learning experience. A focused, personalized, and Mentor guided approach will ensure a disciplined and holistic preparation.
VIDEO LECTURES
Structured video lectures of Paper 4 for a concrete understanding of the syllabus. Our novel methodology accompanied by an in-depth explanation ensures comprehensive coverage of every topic in the syllabus. Added to this, we have made sure to add that extra element of fun.
DOUBT AND DISCUSSION SESSION
A schedule is created where dedicated days are kept to discuss your doubts regarding each lecture. So, cover the part of the lecture video for the day and clear your doubts the same day. In addition to that, It also provides an opportunity to carry advanced discussion sessions focused on video lectures. This is additional to the basic level discussion on the Ethics group.
MINI-TESTS
A mini test on the weekend will help to bring together the ideas and concepts learned throughout the week. This is the perfect icing on the cake! Get personalized reviews on your answers by Sukanya ma’am to understand how you can improve and score better.
Questions framed are from the most important UPSC relevant themes and papers are based on the latest pattern of UPSC. Get model answers cover all the aspects of a question and providing enriching points to the student.
CASE STUDIES DISCUSSION
Scoring in case studies translates into a good score in paper 4. Learn the tips and tricks to master Section B of the ethics paper with discussions and practice questions.
CIVILSDAILY’S HANDHOLDING
You’ll be given membership to an exclusive group on Civilsdaily’s Habitat. The group will be headed by Sukanya ma’am herself. From doubt resolution, discussion, personalized review of the mini test copies will be done by Sukanya ma’am only. Here you can directly connect with ma’am.
Ethics discussion on Habitat (For Masterclass a new and exclusive channel on Habitat will be formed)
Habitat is where everything comes together learning, doubt clearing, mentor’s support, and a focused community. You’re going to learn and discuss it like never before.
How will your queries be resolved?
The moment you have a query, you post it in the group. At 11 PM, 3 AM, doesn’t matter. No need to schedule a call, or drop an email. Just drop a chat. Once our team is up, it will be resolved.
More often than not, your peers will take part in your doubt discussions adding a lot of value.
Besides doubts, what else is there on Habitat?
An ecosystem for co-learning and active learning.
A highly motivated community to bring flexibility and consistency to your preparation.
Program inclusion
Comprehensive Video Lectures covering Paper 4
6 Mini test with dedicated days for test discussion
Personalized review and discussion of test copy by Sukanya ma’am
Membership of Ethics group (exclusive) on Civilsdaily’s Habitat
Planned case studies discussion
Doubt resolution session on every lecture on Habitat
Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.
*In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.
For the philosophy of AWE and payment, check here: Click2Join
Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.
*In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.
For the philosophy of AWE and payment, check here: Click2Join
The first full syllabus FLT is live and many have already attempted it. Today we will be having a discussion-cum-doubt solving session on an exclusive group (link shared via email) on Civildaily’s Habitat.
This discussion will be followed by Score Boosting Discussion by Zeeshan sir from 8:00 pm, and revision/doubt solving sessions by Ishika ma’am from 9:00 pm on Habitat’s General group.
If you are yet to attempt the first full syllabus test you can access the saved discussions later and ask doubts any time you want.
About Nikaalo Prelims 2020 FLTs
Based on Zeeshan sir’s Score Boosting Techniques discussions on Civilsdaily’s Habitat in the past few days, we have updated and redesigned Nikaalo Prelims FLTs.
There are 4 Full Syllabus, full-length tests. These tests are essential. Each test will be discussed on Habitat. Other than these we’re providing 4 theme-based revision tests and 3 CSAT tests.
Based on the UPSC paper our FLTs will rigorously test your preparedness and point out weak areas. It will give you the necessary reflection, direction, and confidence for the actual battle.
Prepared by our team, these papers closely resemble an actual UPSC paper.
All important and probable questions for UPSC Pre 2020 are going to be covered in our tests.
They will cover – Union Budget, Economic Survey, India Yearbook, Schemes, Acts, Organisations and Institutions (national and international).
Covering this part is a pain. We know. But there is no other way. We will help.
Around 50-55 questions are expected in the UPSC Prelims from these sections. Preparedness in this section will ensure your success in prelims. It can actually decide if you are writing Mains 2020 or not.
Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.
*In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.
For the philosophy of AWE and payment, check here: Click2Join
Final few weeks are left now for the 2020 prelims. At this point in time, two things which must come as natural as breathing to you are: Revising and attempting FLTs.
The first FLT is live and many have already attempted it. Tomorrow we are going to have a discussion on Habitat. (see schedule at the bottom)
About Nikaalo Prelims 2020 FLTs
Based on Zeeshan sir’s Score Boosting Techniques discussions on Civilsdaily’s Habitat in the past few days, we have updated and redesigned Nikaalo Prelims FLTs.
There are 4 Full Syllabus, full-length tests. These tests are essential. Each test will be discussed on Habitat. Other than these we’re providing 4 theme-based revision tests and 3 CSAT tests.
Based on the UPSC paper our FLTs will rigorously test your preparedness and point out weak areas. It will give you the necessary reflection, direction, and confidence for the actual battle.
Prepared by our team, these papers closely resemble an actual UPSC paper.
All important and probable questions for UPSC Pre 2020 are going to be covered in our tests.
They will cover – Union Budget, Economic Survey, India Yearbook, Schemes, Acts, Organisations and Institutions (national and international).
Covering this part is a pain. We know. But there is no other way. We will help.
Around 50-55 questions are expected in the UPSC Prelims from these sections. Preparedness in this section will ensure your success in prelims. It can actually decide if you are writing Mains 2020 or not.
During this pandemic, one significant area of loss of revenue to both the Centre and the states is GST. The states need all the funds they can get to ramp up the country’s rundown health system. The Compensation Act mandates compensating the states for revenue loss on GST implementation from the Compensation Fund.
The Goods and Services Tax
GST launched in India on 1 July 2017 is a comprehensive indirect tax for the entire country.
It is charged at the time of supply and depends on the destination of consumption.
For instance, if a good is manufactured in state A but consumed in state B, then the revenue generated through GST collection is credited to the state of consumption (state B) and not to the state of production (state A).
GST, being a consumption-based tax, would result in loss of revenue for manufacturing-heavy states.
The adoption of the GST was made possible by the States ceding almost all their powers to impose local-level indirect taxes and agreeing to let the prevailing multiplicity of imposts be subsumed under the GST.
While the States would receive the SGST (State GST) component of the GST, and a share of the IGST (Integrated GST), it was agreed that revenue shortfalls arising from the transition to the new indirect taxes regime would be made good from a pooled GST Compensation Fund for a period of five years that is set to end in 2022.
This corpus in turn is funded through a compensation cess that is levied on so-called ‘demerit’ goods. This GST Compensation Cess or GST Cess is levied on five products considered to be ‘sin’ or luxury as mentioned in the GST (Compensation to States) Act, 2017 and includes items such as- Pan Masala, Tobacco, and Automobiles etc.
Distributing GST compensation
The compensation cess payable to states is calculated based on the methodology specified in the GST (Compensation to States) Act, 2017.
The compensation fund so collected is released to the states every 2 months.
Any unused money from the compensation fund at the end of the transition period shall be distributed between the states and the centre as per any applicable formula.
Issues with compensation
As the economy battles a pandemic and recession, the tax collection has dropped significantly.
At the same time, expenditure needs are sharply higher at the State level.
Using an equivalent of the Force Majeure clause in commercial contracts, the Centre is abdicating its responsibility of making up for the shortfall in 14% growth in GST revenues to the states.
Why is the compensation necessary?
States no longer possess taxation rights after most taxes, barring those on petroleum, alcohol, and stamp duty were subsumed under GST.
GST accounts for almost 42% of states’ own tax revenues, and tax revenues account for around 60% of states’ total revenues.
Finances of over a dozen states are under severe strain, resulting in delays in salary payments and sharp cuts in capital expenditure outlay amid the pandemic-induced lockdowns and the need to spend on healthcare.
What alternative has the Centre offered?
At the last meeting of the GST Council, states were offered two borrowing options to cover either the revenue losses due to GST implementation or the entire shortfall, including the effect of the pandemic.
The options involved states borrowing either under a special RBI window or from the market under different terms. The total compensation due from the Centre is ₹2.35 trillion.
Why are the States resented?
Several States, including West Bengal, Kerala, Punjab and Tamil Nadu, have rejected the options and made clear that the onus is on the Centre to borrow from the market to make good any shortfall in the Compensation Fund.
This is because any additional borrowing by states would have deleterious macro-economic consequences.
Alternatives to prevent losses
The input tax credit can help a producer by partially reducing GST liability by only paying the difference between the tax already paid on the raw materials of a particular good and that on the final product.
In other words, the taxes paid on purchase (input tax) can be subtracted from the taxes paid on the final product (output tax) to reduce the final GST liability.
Way Forward
(1) Reforming the regime
GST is a destination-based consumption tax, which must include all goods and services with very few exceptions.
That widening of the tax base itself will allow us to go back to the original recommendation of a standard rate of 12%, to be fixed for at least a five-year period.
Some extra elbow room for the States’ revenue autonomy could be allowed by States non-VATable surcharges on a small list of “sin” goods.
We must recognise the increasing importance of the third tier of government. After 28 years of the 73rd and 74th Amendments, the local governments do not have the promised transfer of funds, functions and functionaries.
Of the 12% GST, 10% should be equally shared between the States and the Centre, and 2% must be earmarked exclusively for the urban and rural local bodies.
The fresh approach also calls for an overhaul of the interstate GST and the administration of the e-way bill.
(2) Raising the funds
Additional resources could be raised by increasing the tax or the cess but in the present difficult times it would not be advisable to raise the burden of either the tax or the cess.
The only way out of this difficult situation is borrowings. The Centre should borrow in view of its higher borrowing and debt-servicing capacity and its ability to borrow at lower rates.
The borrowing capacity of the states, too, is not very inferior. A/c to the RBI, the states are consistently borrowing less than they can borrow (legally and financially), which makes sound financial sense. Thus it makes sense for the states to borrow.
(3) Other measures
The Centre can offer to fully compensate states without any borrowing by the latter provided opposition-ruled states agree to amend laws that prevent the privatization of nationalized companies, including many banks.
The Centre would then use the proceeds from privatization and land and asset sales to compensate states from its own immediate borrowings.
The compensation cess and privatization proceeds can be used to honour the Centre’s promises to states.
The Centre should offer this deal along with another sweetener: all future privatization proceeds will be shared upto 20 per cent with the states in which those undertakings are located.
States can also be promised a share of other asset sales, too, including land leased by states to central entities.
Conclusion
GST is a crucial and long-term structural reform that can address the fiscal needs of the future, strike the right and desired balance to achieve co-operative federalism and also lead to enhanced economic growth. At present, what states need is hard cash. Only the central government has multiple options and the flexibility to raise the resources and pay the shortfall in GST compensation to the states. Some way forward can surely go a long way.
Hello students, Zeeshan Sir, who has been spearheading the celebrated Tikdam Series shall be live tonight at 9 pm for one-on-one LIVE chat sessions, on CIVILSDAILY HABITAT.
Here, you can personally interact with Zeeshan Sir, ask doubts, learn, discuss, and better internalize these skills to emerge more confident to face the Prelims 2020 exam.
INSTRUCTIONS
If you are already on Habitat, you don’t need to register again. Discussions will take place on General group. See you at 9:00 pm tonight. Others follow these steps:
