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GS Paper: GS3

  • Exercise Maitree

    Why in the News?

    The 14th Maitree Exercise between Indian and Thai Army will be held in Umroi, Meghalaya returning to India after five years.

    About Exercise Maitree:

    • Overview: A bilateral military exercise between the Indian Army and the Royal Thai Army.
    • Started: 2006, as a collaborative initiative to deepen defense ties.
    • Frequency: Held annually, alternating between India and Thailand.
    • Participants: Company-level contingents (approx. 70–80 soldiers each); Indian units have included Ladakh Scouts, while Thai units have included Infantry Regiments.
    • Objective: To build interoperability, mutual trust, and cooperation in counter-terrorism, insurgency management, and peacekeeping operations.

    Key Features:

    • Counter-Terrorism Focus: Joint training for counter-terror and counter-insurgency operations, especially in semi-urban and jungle terrain.
    • UN Mandate Training: Exercises designed to simulate peacekeeping operations under UN Charter VII.
    • Humanitarian Drills: Includes disaster relief, humanitarian assistance, and urban evacuation operations.
    • Strategic Relevance:
      • Strengthens India–Thailand defense cooperation under the 2012 MoU.
      • Supports India’s Act East Policy and shared maritime/strategic interests in the Bay of Bengal–Andaman Sea region.
      • Enhances interoperability for multinational operations and regional stability.
    [UPSC 2024] Which of the following statements about ‘Exercise Mitra Shakti-2023’ are correct?

    1. This was a joint military exercise between India and Bangladesh.

    2. It commenced in Aundh (Pune).

    3. Joint response during counter-terrorism operations was a goal of this operation.

    4. Indian Air Force was a part of this exercise.

    Select the answer using the code given below:

    Options: (a) 1, 2 and 3 (b) 1 and 4 (c) 1 and 4 (d) 2, 3 and 4*

     

  • Jan Vishwas Bill 2.0

    Why in the News?

    • The Jan Vishwas (Amendment of Provisions) Bill, 2025 was introduced in the Lok Sabha to further the government’s agenda of decriminalisation and rationalisation of laws.
    • This is the second Jan Vishwas Bill; the first (2023) decriminalised 183 provisions in 42 Acts.

    About the Jan Vishwas Bill 2.0:

    • Introduced in Lok Sabha (August 2025) as the second Jan Vishwas reform.
    • Seeks to amend 16 Central Acts across 10 ministries/departments.
    • Builds on the Jan Vishwas Act, 2023, which decriminalised 183 provisions in 42 Acts.
    • Aims to promote trust-based governance, ease of living, and ease of doing business.
    • Currently referred to a Lok Sabha Select Committee for examination.

    Key Features of the Bill:

    • Scope: Proposes amendments to 355 provisions:
      • 288 decriminalised (technical/procedural defaults).
      • 67 rationalised (ease of living).
    • Acts covered: RBI Act (1934), Drugs & Cosmetics Act (1940), Motor Vehicles Act (1988), Electricity Act (2003), Legal Metrology Act (2009), MSME Development Act (2006), Apprentice Act (1961), and others.
    • First-time Offences: Introduces “warning” and “improvement notice” in 76 offences (e.g., non-standard weights, MVA violations).
    • Decriminalisation: Removes imprisonment clauses for minor defaults, replacing them with fines or warnings.
      • Example: Electricity Act → imprisonment replaced with fines between ₹10,000 and ₹10 lakh.
    • Penalty Rationalisation: Automatic 10% increase in penalties every 3 years for repeat offences.
    • Objective: Ensure deterrence without overburdening courts and without repeated legislative amendments.

    Why was the Bill brought in?

    • Over-criminalisation in Indian laws:
      • 882 central laws; 370 contain criminal provisions for 7,305 offences (Vidhi Centre).
      • Many are trivial or outdated (e.g., penalties for routine acts like exercising pets incorrectly).
    • Business barriers:
      • ORF (2022) → Over 50% of 1,536 business laws carry jail terms; 37.8% of 69,233 compliances carry imprisonment clauses.
      • Creates fear among entrepreneurs, stifling growth.
    • Judicial pendency:
      • 3.6 crore criminal cases pending in district courts (Aug 2025).
      • 2.3 crore are over 1 year old.
      • Minor offences clog the system, delaying trials of serious crimes.
    • Governance reform agenda:
      • Aligns with PM Modi’s commitment to remove “unnecessary laws” (reiterated in Independence Day 2025 speech).
      • Supports ease of living and ease of doing business as core NDA governance planks.
    [UPSC 2012] What is/are the recent policy initiative(s)of Government of India to promote the growth of the manufacturing sector?

    1. Setting up of National Investment and Manufacturing Zones

    2. Providing the benefit of ‘single window clearance’

    3. Establishing the Technology Acquisition and Development Fund

    Select the correct answer using the codes given below:

    Options: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3*

     

  • Induction of INS Udaygiri and INS Himgiri Stealth Nilgiri Class Frigates

    Why in the News?

    The Indian Navy has commissioned INS Udaygiri and INS Himgiri, Nilgiri-class frigates built under Project 17A, at Visakhapatnam.

    Induction of INS Udaygiri and INS Himgiri Stealth Nilgiri Class Frigates

    About INS Udaygiri & INS Himgiri:

    Feature INS Udaygiri INS Himgiri
    Builder Mazagon Dock Shipbuilders Ltd. (MDL), Mumbai Garden Reach Shipbuilders & Engineers (GRSE), Kolkata
    Series / Class 2nd ship of Project 17A;

    100th vessel designed by Navy’s Warship Design Bureau

    		 1st Project 17A frigate from GRSE
    Naming After Udaygiri mountain range (AP); earlier ship (1976–2007) Legacy of original INS Himgiri (1974–2005)
    Displacement / Size ~6,700 tonnes ~6,670 tonnes; Length: 149 m
    Propulsion CODOG (Combined Diesel or Gas) CODOG; speeds 28+ knots
    Stealth Features Reduced radar, infrared, and acoustic signatures Enhanced radar & IR signature reduction
    Armament BrahMos, Barak-8 SAMs, 76 mm gun, CIWS, advanced ASW weapons BrahMos, Barak-8, CIWS, ASW rocket launchers, torpedo tubes, EW systems
    Aviation Facilities – Flight deck + hangar for MH-60 Romeo, ALH Dhruv Mk-III, Sea King helicopters
    Indigenous Content ~75% (local sensors, systems, IPMS) ~75%

     

    [UPSC 2016] Which one of the following is the best description of ‘INS Astradharini’, that was in the news recently?

    Options: (a) Amphibious warfare ship (b) Nuclear-powered submarine (c) Torpedo launch and recovery vessel* (d) Nuclear-powered aircraft carrier

     

  • How have deception techniques evolved

    Introduction

    Modern warfare is no longer about firepower alone; it is equally about deception. As precision-guided missiles, drones, and AI-enabled targeting systems grow deadlier, militaries are turning to decoy technologies to confuse radars, mislead missiles, and protect valuable assets. India’s reported use of the AI-enabled X-Guard decoy during Operation Sindoor shows how deception has become a central element of national security strategy.

    The Growing Relevance of Deception in Modern Warfare:

    1. Evolving threat environment: Precision-guided munitions, drones, and AI-enabled targeting systems make military platforms highly vulnerable.
    2. Strategic asset: Decoys create confusion, waste enemy munitions, and buy crucial time for retaliation.
    3. Game-changing event: Operation Sindoor showcased India’s successful use of an AI-enabled decoy, termed by experts as “the best instance of spoofing and deception ever seen.”

    Inside the X-Guard Fibre-Optic Towed Decoy 

    1. Lightweight & reusable: At just 30 kg, retractable and deployable in flight.
    2. Radar mimicry: Replicates the Rafale’s Radar Cross Section (RCS), doppler velocity, and spectral signature across multiple bands.
    3. 360-degree jamming: Works seamlessly with the Rafale’s SPECTRA suite to form a layered defensive shield.
    4. Operational success: Reports suggest Pakistan’s J-10C fighters misidentified decoys as actual aircraft, wasting advanced PL-15E missiles.

    Global landscape of comparable decoy systems: 

    1. BriteCloud (Leonardo UL): Used on Eurofighter Typhoons, Gripen-Es, and some F-16s.
    2. AN/ALE-50/55 series (Raytheon/BAE Systems): Deployed on U.S. Navy F/A-18E/F Super Hornets.
    3. Adaptability to UAVs: Modified for platforms like Israeli Herons and U.S. MQ-9 Reapers.

    Battlefield deception on Land Forces: 

    1. Inflatable & heat-emitting decoys: Simulate tanks, artillery, and missile batteries to divert strikes.
    2. Ukraine’s wooden & 3D-printed fakes: Exhaust Russian drone and missile stocks.
    3. Russia’s Inflatech decoys: Create entire armoured formations in minutes.
    4. Indian Army initiative (2025): Issued a request for decoys mimicking T-90 tanks, including thermal and acoustic signatures.

    Naval countermeasures and Decoy strategies

    1. Layered naval countermeasures: Chaff, acoustic decoys, and offboard active deception protect against missiles and submarines.
    2. Nulka decoy (Australia–U.S.): Self-propelled system mimicking large ship radar signatures to mislead missile guidance.

    Conclusion

    Deception, once limited to camouflage and dummy equipment, has evolved into a sophisticated digital-age shield. Airborne fibre-optic decoys, inflatable ground tanks, and naval missile deflectors now define modern survivability. India’s reported use of the X-Guard highlights its adaptation to the evolving battlefield. For a relatively low investment, such systems deliver high-impact protection, proving that in the wars of tomorrow, deception may be as decisive as destruction.

    PYQ Relevance

    “How is S-400 air defence system technically superior to any other system presently available in the world?”

    Linkage: This question shows UPSC’s focus on defence technology and comparative capability analysis. The same lens applies to India’s deployment of AI-enabled decoys like the X-Guard FOTD, which enhance survivability against advanced missile systems. Both highlight the importance of evaluating cutting-edge military technology for national security.

  • Asgard Archaea and the Evolution of Complex Cells

    Why in the News?

    Recent research by IISc on Asgard archaea — the closest living relatives of eukaryotes — has shed new light on how simple prokaryotic cells evolved into complex eukaryotic cells with nuclei, cytoskeletons, and organelles.

    About Asgard Archaea:

    • Nature: Tiny microbes living in deep-sea mud and extreme environments.
    • Evolutionary Link: Closest relatives of eukaryotic cells (plants, animals, humans).
    • Importance: Help explain how simple prokaryotic cells (bacteria/archaea) evolved into complex eukaryotic cells.
    • Significance: Considered the “missing link” in the origin of complex life.

    Findings from Indian Institute of Science (IISc) Study:

    • Focus: Scientists studied a subgroup called Odinarchaeota.
    • Discovery: Found two FtsZ genes (most microbes have one) and a tubulin-like gene.
      • FtsZ1: Works like bacterial proteins → forms straight filaments and attaches to cell membranes.
      • FtsZ2: Builds spiral structures but needs helper proteins to stick to membranes.
    • Division of Labour: Cooperation of FtsZ1 and FtsZ2 shows early signs of cellular specialisation.
    • Clue for Evolution: Suggests Asgard microbes were already experimenting with primitive “cytoskeleton” systems, paving way for complex cells.
    [UPSC 2012] Which one of the following sets of elements was primarily responsible for the origin of life on the Earth?

    Options:

    (a) Hydrogen, Oxygen, Sodium

    (b) Carbon, Hydrogen, Nitrogen*

    (c) Oxygen, Calcium, Phosphorus

    (d) Carbon, Hydrogen, Potassium

     

  • Integrated Air Defence Weapon System (IADWS) 

    Why in the News?

    The DRDO has successfully conducted the maiden flight-tests of the Integrated Air Defence Weapon System (IADWS) off the coast of Odisha.

    Integrated Air Defence Weapon System (IADWS) 

    About the Indigenous Air Defence Weapon System (IADWS):

    • Overview: A multi-layered indigenous system developed to neutralise a wide spectrum of aerial threats.
    • Integration: Combines 3 components viz. Quick Reaction Surface-to-Air Missiles (QRSAM), Very Short Range Air Defence System (VSHORADS), and Directed Energy Weapon (DEW).
    • Control: All systems are networked through a Command-and-Control Centre developed by the Defence Research and Development Laboratory (DRDL), Hyderabad.

    Key Components of IADWS:

    1. QRSAM:
      • Short-range missile system for protecting moving Army armoured formations.
      • Range: 3–30 km.
      • Equipped with 360° surveillance and tracking radars.
      • Fully automated, mobile, and capable of “search on move” and “track on move.”
    2. VSHORADS:
      • Fourth-generation man-portable air defence system (MANPAD).
      • Range: 300 m – 6 km.
      • Targets include drones, UAVs, and low-altitude aerial threats.
      • Deployable across Army, Navy, and Air Force.
    3. Directed Energy Weapon (DEW):
      • Vehicle-mounted laser system.
      • Range: <3 km.
      • Proven in field trials against UAVs and drone swarms.

    Strategic Significance:

    • Multi-Layer Defence: Provides aerial protection up to 30 km against threats from drones to fighter jets.
    • Self-Reliance: Enhances indigenous capability, reducing dependence on imported defence systems.
    • National Security: Strengthens preparedness for Mission Sudarshan Chakra — India’s planned national air defence shield.
    • Technological Integration: Demonstrates India’s leap in combining missile and laser-based defence on a single platform.
    • Geostrategic Importance: Seen as a milestone in India’s path to advanced, self-reliant defence systems.
    [UPSC 2018] What is “Terminal High Altitude Area Defense (THAAD)”, sometimes seen in the news?

    Options:

    (a) An Israeli radar system

    (b) India’s indigenous anti-missile programme

    (c) An American anti-missile system*

    (d) A defence collaboration between Japan and South Korea

     

  • Nepal officially joins IBCA

    Why in the News?

    Nepal has officially joined the International Big Cat Alliance (IBCA), an India-led global initiative to protect seven species of big cats.

    About the International Big Cat Alliance (IBCA)

    • Overview: A global multi-country, multi-agency alliance of 95 countries (range and non-range) focused on conserving big cats and their habitats.
    • Launch: Proposed by PM Modi in 2019; officially launched in April 2023 on Project Tiger’s 50th anniversary.
    • Conservation Scope: Works to protect 7 species of big cats — tiger, lion, leopard, snow leopard, cheetah, jaguar, and puma.
    • Functions: Operates through advocacy, knowledge-sharing, eco-tourism promotion, and resource mobilisation.
    • Conflict Mitigation: Aims to reduce human–wildlife conflict and restore degraded habitats.
    • Institutional Structure:
      • Governance: Managed by a General Assembly, elected Council, and Secretariat headed by a Secretary-General.
      • Headquarters: Permanent base established in India following ratification of the HQ agreement.

    Global Participation

    • Membership: Includes 95 countries across Asia, Africa, the Americas, and Europe/Central Asia. Examples:
      • Asia: India, China, Nepal, Pakistan, Iran.
      • Africa: Kenya, Congo, Ghana.
      • Americas: Brazil, Ecuador, United States.
      • Europe/Central Asia: Russia, Kazakhstan.
    • Ratification: Bhutan, Eswatini, Cambodia, Guinea, India, Liberia, Nicaragua, Somalia, and Suriname have deposited ratification instruments.

    India’s Role:

    • Biodiversity Hub: India hosts 5 of the 7 big cats — tiger, lion, leopard, snow leopard, and cheetah — and holds 70% of global tiger population.
    • Funding: Government committed ₹150 crore for 2023–2028; mobilising international contributions.
    • Leadership: India sets global benchmarks in wildlife conservation and ecological stewardship, positioning itself as a leader in big cat protection.
    [UPSC 2024] Consider the following statements:

    1. Lions do not have a particular breeding season.

    2. Unlike most other big cats, cheetahs do not roar.

    3. Unlike male lions, male leopards do not proclaim their territory by scent marking.

    Which of the statements given above are correct?

    (a) 1 and 2 only * (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 2

     

  • Reforming the steel framework

    Introduction

    Independence Day speeches are often symbolic, but in 2025 the Prime Minister shifted focus to frontier technologies, semiconductors, clean energy, AI, quantum computing, and defence indigenisation. Unlike earlier years, this vision was paired with the acknowledgment that bureaucratic inertia and regulatory red tape remain India’s toughest hurdles. The central challenge is whether India’s governance structures can keep pace with its technological ambitions.

    Significance of the 2025 Speech by the Prime Minister 

    • Future focus: Strong emphasis on frontier areas like semiconductors, EVs, and jet engines.
    • Symbolic push: The PM asked if fighter jet engines should not be Indian-made.
    • Bold promise: India will shed dependency in two decades.
    • Data milestone: India is the largest per capita data consumer (32 GB), ahead of China and the US.

    India’s current position in technology and self-reliance

    • Strength in mid-tech: Success in fintech, data access, and digitisation
    • Emerging hubs: Bengaluru, Hyderabad, Pune, Gurugram drive high-tech growth.
    • Import dependency: India depends heavily on imports in semiconductors, defence hardware, AI hardware, and clean energy technologies.
    • Global presence: Firms like Nvidia and IBM rely on India’s talent pool, but domestic ecosystems remain thin.

    Bureaucratic Challenges that obstruct deep-tech ambition

    • Colonial bureaucratic legacy: The Westminster model prioritised control over innovation and accountability.
    • Rigid steel frame: The “steel frame” of the civil services designed to ensure subservience to colonial administrators remains rigid even a century after the Public Service Commission’s creation in 1926.
    • Unrealised reforms: The Veerappa Moily Committee (2005) suggested domain experts and ethics codes-still pending.
    • Lateral entry limits: Attempts at inducting experts face systemic resistance.

    Why are regulatory and judicial reforms critical?

    • Persistent red tape: The Deregulation Commission (2025) was set up to identify redundant compliance norms, but structural bottlenecks persist.
    • Judicial backlog: Slow dispute resolution and investment climate, affectshigh-tech sectors.
    • Comparative lessons:
      • US & China: Despite different models, both empower political leadership over bureaucracy to push national interests.
      • UK: Even Britain debates its bureaucratic model, Dominic Cummings under Boris Johnson pushed for external competition and greater ministerial control.

    How does this link to Viksit Bharat@2047?

    • Ambition vs. architecture: India’s goal of becoming a deep-tech powerhouse is contingent not just on financial investment but on restructuring governance.
    • Symbolic timing: The UPSC centenary in 2026 is a historic chance for overhaul.
    • Future-readiness: Without structural reform, Atmanirbhar Bharat may remain aspirational.

    Conclusion

    India’s ambition to lead in deep-tech must be matched with institutional reform. The PM’s 2025 speech acknowledged that Atmanirbharta is as much about fixing bureaucratic bottlenecks as building jet engines or quantum labs. The centenary of UPSC offers an opportune moment to align India’s governance with its 2047 goals.

    Value Addition
    Committees on Civil Service Reforms

    1. Santhanam Committee (1964)

    • Focus: Preventive corruption measures.
    • Key suggestion: Creation of the Central Vigilance Commission (CVC).

    2. Kothari Committee (1976)

    • Focus: Recruitment and exam structure of Civil Services.
    • Key suggestion: Recommended 3-stage exam (Prelims, Mains, Interview), which is still followed today.

    3. Satish Chandra Committee (1989)

    • Focus: Review of recruitment and selection.
    • Key suggestion: Increased emphasis on aptitude and ethics in recruitment.

    4. Hota Committee (2004)

    • Focus: Ethics, transparency, and performance.
    • Key suggestion: Right to Information, performance-linked incentives, citizen charters.

    5. Second Administrative Reforms Commission (ARC) – Veerappa Moily (2005–2009)

    Most comprehensive civil service reform report (15 volumes). Key suggestions:

    • Lateral entry of domain experts.
    • Code of Ethics & Code of Conduct.
    • Citizen-centric administration
    • Performance-based appraisal system.
    • Training in e-governance and modern management practices

    6. Punchhi Commission (2010) – on Centre-State relations

    • Relevant link: Stressed need for civil service neutrality in federal governance.

    7. Baswan Committee (2016)

    1. Focus: UPSC exam age and attempts.
    2. Key suggestion: Reduce maximum age for UPSC CSE (though not implemented).

    8. Current initiatives 

    • Lateral entry into Joint Secretary and Director-level posts.
    • Mission Karmayogi (2020): National Programme for Civil Services Capacity Building (NPCSCB) to train officers with competency-based framework.
    • Deregulation Commission (2025): Identifying and scrapping redundant compliances.

    Mapping Microthemes

    • GS Paper-II: Civil Service Reform, Regulation, Judiciary
    • GS Paper -III: Tech missions, Defence Indigenisation, Atmanirbhar Bharat
    • GS Paper -IV: Accountability, Ethics in governance

    PYQ Relevance

    [UPSC 2016] Civil Services “Traditional bureaucratic structure and culture have hampered the process of socio-economic development in India.” Comment.

    Linkage: PM Modi’s Independence Day 2025 address highlighted that despite India’s technological advances, the colonial-era bureaucratic “steel frame” continues to obstruct innovation, investment, and governance reforms. The traditional bureaucratic structure—designed for control rather than development—remains a bottleneck in achieving Atmanirbhar Bharat. Thus, the speech directly echoes the UPSC 2016 theme that outdated bureaucratic culture hampers socio-economic transformation.

  • Lunar Module Launch Vehicle (LMLV)

    Why in the News?

    The Indian Space Research Organisation (ISRO) is developing its heaviest-ever rocket, the Lunar Module Launch Vehicle (LMLV).

    About Lunar Module Launch Vehicle (LMLV):

    • Overview: India’s heaviest rocket under development by the Indian Space Research Organisation (ISRO).
    • Purpose: Designed mainly for lunar exploration, including India’s first human mission to the Moon by 2040.
    • Strategic Role: Replaces the Next Generation Launch Vehicle (NGLV) plan and will support India’s space station programme.
    • Scale: As tall as a 40-storey building, far larger than the current LVM-3.

    Key Features:

    • Payload Capacity: Can carry 80 tonnes to Low Earth Orbit (LEO) and 27 tonnes to the Moon, suitable for human-rated spacecraft.
    • Three-stage: Partially reusable super heavy-lift vehicle with:
      • First two stages using liquid propellants.
      • Third stage using cryogenic propellant.
      • Strap-on boosters taller than the entire LVM-3 rocket.
      • 27 engines in the first stage (core + boosters).
    • Timeline: Expected completion by 2035.
    • Indigenous Development: Conceived by ISRO within months; aligned with India’s long-term space exploration goals.

    Future Missions based on LMLV:

    • Human Lunar Mission (2040 target): Capable of carrying 18–20 tonne crew modules for India’s first astronaut landing on the Moon.
    • Bharatiya Antariksh Station (BAS): Will deploy heavy modules for India’s planned five-module space station by 2035.
    • Lunar Cargo Missions: Can transport ~27 tonnes to the Moon, supporting logistics and lunar infrastructure.
    • Deep Space Exploration: Its heavy-lift capacity could enable interplanetary missions in the 2040s, extending beyond lunar exploration.
    [UPSC 2018] With reference to India’s satellite launch vehicles, consider the following statements:

    1.PSLVs launch the satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites.

    2.Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth.

    3.GSLV Mk III is a four-stage launch vehicle with the first and third stages using solid rocket motors, and the second and fourth stages using liquid rocket engines.

    Which of the statements given above is/are correct?

     

    Options: (a) 1 only* (b) 2 and 3 (c) 1 and 2 (d) 3 only

     

  • Simplified two-rate GST Structure

    Why in the News?

    • The Group of Ministers (GoM) on Rate Rationalisation has accepted the Centre’s proposal to simplify GST into a two-rate structure.
    • The recommendation will now be placed before the GST Council for final approval.

    https://www.thehindu.com/business/Economy/gom-on-rate-rationalisation-approves-centres-two-rate-gst-proposal/article69959558.ece 

    About Goods and Services Tax (GST):

    • Nature: Comprehensive, multi-stage, destination-based indirect tax on goods and services.
    • Introduction: Launched July 1, 2017, via the 101st Constitutional Amendment Act, 2016.
    • Replaced Taxes: Subsumed excise duty, value-added tax (VAT), service tax, etc.
    • Objectives: One Nation–One Tax, reduce cascading taxation, simplify compliance, expand tax base.
    • Structure: Five slabs – 0%, 5%, 12%, 18%, 28%, with cess on luxury/sin goods (tobacco, cars, online gaming).
    • Exemptions: Essential goods (food, medicines, education items) in 0% slab. Petroleum, alcohol, and electricity remain outside GST.

    Proposed Two-Rate GST Structure:

    • Reforms: Removal of 12% and 28% slabs; only 5% and 18% to remain.
    • Reclassification: 99% of 12% items → 5% slab; 90% of 28% items → 18% slab.
    • New Slab: 40% rate for demerit goods (tobacco, luxury cars, real-money gaming).
    • Cess: Compensation cess on 28% items to end.
    • Timeline: Implementation expected October 2025 (Diwali).

    Policy Rationale & Concerns:

    • Simplification: From four slabs to two, easing compliance and transparency.
    • Consumption Boost: Lower rates on daily goods to benefit households and Micro, Small and Medium Enterprises (MSMEs).
    • Compliance Gains: Less scope for disputes, litigation, and evasion.
    • Economic Signal: Projects confidence in domestic consumption as growth driver.
    • State Concerns: States, including Kerala, warn of revenue loss; call for compensation mechanism.
    [UPSC 2018] Consider the following items:

    1. Cereal grains hulled 2. Chicken eggs cooked 3. Fish processed and canned 4. Newspapers containing advertising material

    Which of the above items is/are exempted under GST (Goods and Services Tax)?

    Options: (a) 1 only (b) 2 and 3 only (c) 1, 2 and 4 only *(d) 1, 2, 3 and 4