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  • Innovations in Biotechnology and Medical Sciences

    Simple Medical Tools of an OPD Visit

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Why in the News?

    • These medical tools—thermometers, stethoscopes, weighing scales, and sphygmomanometers—are essential for diagnosing and monitoring basic health parameters.
      • Each tool has its own function and specific way of operation, which helps healthcare professionals make informed decisions about patient care.

    Here is the list of tools used in a Doctor’s Diagnosis:

    Function Description and Working Principle
    Thermometer Measures body temperature.
    • Mercury Thermometer: Features a mercury-filled bulb and a glass capillary with numerical markings. Temperature changes cause the mercury to expand or contract, moving through the capillary to indicate temperature.
    • Digital Thermometer: Utilizes sensors like infrared or thermistors to detect temperature changes, which are then converted into digital readings.
    Stethoscope Listens to internal body sounds.
    • Acoustic Stethoscope: Comprises a diaphragm for high-frequency sounds and a bell for low-frequency sounds, connected by a tube to earpieces.
    • Electronic Stethoscope (Stethophone): Amplifies body sounds electronically and may include recording capabilities and additional diagnostics such as electrocardiograms. These devices transmit sound data to smartphones or other devices.
    Weighing Scale Measures body weight.
    • Spring Scale: Uses a spring under a plate; weight is measured by the degree of spring compression or extension. Requires calibration to account for local gravity variations.
    • Electronic Scale: Converts the mechanical force of weight into electrical signals using load cells or strain gauges, displayed as weight readings on a digital screen.
    Sphygmomanometer Measures blood pressure.
    • Manual Sphygmomanometer: Includes an inflatable cuff, linked to a mercury or aneroid manometer. Uses a stethoscope to detect blood flow sounds (Korotkov sounds) for determining systolic and diastolic pressures.
    • Electronic Sphygmomanometer: Uses oscillometric technology to sense pressure oscillations caused by arterial blood flow, automating blood pressure measurement. Easier for home use but may have accuracy issues in patients with certain cardiovascular conditions.

     

    PYQ:

    [2019] In the context of wearable technology, which of the following tasks is/are accomplished by wearable devices?

    1. Location identification of a person
    2. Sleep monitoring of a person
    3. Assisting the hearing-impaired person

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 3 only

    (d) 1, 2 and 3

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  • Global Geological And Climatic Events

    Frequent mass wasting in Tibet a cause for worry in India 

    Explained | Enviro & Biodiversity | Mains Paper 1: Geographical Features & Their Location

    Why in the News?

    A recent study on frequent mass wasting in Sedongpu Gully and rapid warming raises concerns for India’s Northeast region.

    About Sedongpu Gully:

    • The Sedongpu gully (29°47′7.20′′N, 94°55′24′′E) is in the large bend region of the Yarlung Tsangpo River, located in the southeastern Tibetan Plateau.
    • Debris flows have occurred in two adjacent gullies, namely Sedongpu Gully (SDP) and Zelongnong Gully (ZLN), since the 1950s.

    Mass Wasting in the Gully: Stats and Reasons

    • Since 2017, over 700 million cubic meters of debris have been mobilized in the Sedongpu Gully catchment, with more than 68% of the total 19 identified mass-wasting events occurring in this period.
      • The events include ice-rock avalanches (IRAs), ice-moraine avalanches (IMAs), and glacier debris flows (GDFs).
    • Causes: The increased frequency of mass wasting is attributed to a combination of long-term warming and seismic activity.
      • The area rarely experienced temperatures above 0º C before 2012, but climate change has led to significant warming, destabilizing permafrost and increasing landslide activity.
      • The 6.4-magnitude Nyingchi earthquake in November 2017 also contributed to the destabilization of slopes.

    Implications of sedimentation from mass wasting events:

    • River Choking and Flash Floods: The study warns that the increased sedimentation from mass wasting events could choke river channels, particularly affecting the Brahmaputra River system. 
    • Hydropower Projects: China is planning to construct a massive 60-gigawatt hydropower project on the Tsangpo River, which could exacerbate sedimentation issues downstream.
      • This project is expected to have three times the capacity of the Three Gorges Dam, raising concerns about river management and flood risks in India and Bangladesh.
    • Historical Flood Events: Past incidents, like the 2000 floods in Arunachal Pradesh caused by landslides blocking the Tsangpo River, show how dangerous landslides can be for areas downstream.
      • The chance of similar disasters is higher now because of the ongoing geological instability in the Sedongpu Gully.

    Way forward: 

    • Bilateral and Multilateral Dialogues: India should intensify diplomatic efforts with China, advocating for shared water management strategies and transparency in hydropower projects on the Tsangpo River.
    • Real-Time Monitoring: Establish advanced real-time monitoring systems for the Brahmaputra River and its tributaries, using satellite imagery, remote sensing, and ground-based observations to track landslides, sedimentation, and water flow.

    Mains question for practice:

    Q Discuss the potential risks posed by the increasing frequency of mass wasting events in the Sedongpu Gully and the implications for India’s Northeast region. (150 words) 10M

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    Investing in persons with disabilities  

    Explained | Governance | Mains Paper 2: Laws, Institutions & Bodies Constituted For The Vulnerable Sections

    Why in the News?

    The recent film Srikanth depicts industrialist Srikanth Bolla’s triumph over visual impairment. It highlights societal stigma, marginalization, and the lack of support for Persons with Disabilities (PwDs).

    Status of Education and Jobs for PwD’s in India:

    • Limited Employment Opportunities: A 2023 report indicates that only five out of 50 Nifty 50 companies employ more than 1% of persons with disabilities (PwDs), with most being public sector firms.
    • Gap in Accessibility and Supply: Less than 1% of educational institutions in India are disabled-friendly, highlighting a significant gap in accessibility and support for PwDs in both education and employment sectors.
    • Inadequate Infrastructure: Data shows that fewer than 40% of school buildings have ramps, and only about 17% have accessible restrooms.
    • Lack of effective implementation: Despite legislative provisions for reservations in government jobs under the Rights of Persons with Disabilities Act, 2016, there is a lack of effective implementation, resulting in low participation of PwDs in the workforce.

    Challenges Faced by Persons with Disabilities (PwD)

    • Social Stigma and Marginalization: PwDs face deep-rooted social stigma, which leads to discrimination and exclusion from various sectors, including education and employment.
    • Inaccessible Infrastructure: Many public and private spaces lack the necessary infrastructure to accommodate PwDs, such as ramps and accessible restrooms, which severely limits their mobility and independence. For example, Less than 40% of school buildings have ramps, and only about 17% have accessible restrooms.
    • Educational Barriers: Despite the Right to Education Act, many PwDs encounter barriers such as a lack of inclusive schools, trained teachers, and assistive technologies, leading to high illiteracy rates among disabled individuals.
    • Workplace Discrimination: PwDs often face discrimination in the workplace, including a lack of reasonable accommodations and societal prejudices that create a “glass ceiling” for their employment opportunities.

    Erosion of Identity for PwDs

    • Negative Representation: The portrayal of PwDs in society often reduces them to objects of pity or ridicule. This negative representation contributes to a societal attitude that undermines their dignity and identity.
    • Perception as Burdens: Sociologists argue that PwDs are frequently seen as burdens on society, which affects their self-identity and societal participation. This perception is reinforced through media and public discourse.
    • Intersectionality of Disability: PwDs who also belong to marginalized castes or genders face compounded discrimination, creating a double or triple burden that further erodes their identity and social standing.
    • Social Exclusion: The stigma surrounding disabilities often leads to exclusion from social activities and relationships, reinforcing the idea that PwDs can only relate to one another, which diminishes their broader social identity.

    Way forward: 

    • Enhance Accessibility: Ensure that educational institutions and workplaces are fully accessible by upgrading infrastructure and implementing inclusive design standards.
    • Combat Stigma and Promote Inclusion: Launch targeted awareness campaigns to challenge negative perceptions of PwDs and promote their positive contributions.

    Mains PYQ: 

    Q The Rights of Persons with Disabilities Act, 2016 remains only a legal document without intense sensitisation of government functionaries and citizens regarding disability. Comment. (2022)

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    Tackling the frictions in cross-border payments  

    Explained | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Why in the News?

    Despite being worth $181.9 trillion in 2022, cross-border payments still have inefficiencies prompting the G-20 to focus on improving them for economic growth.

    Present Status of the Global Cross-Border Payments Market

    • The cross-border payments market was valued at approximately $181.9 trillion in 2022 and is projected to reach $356.5 trillion by 2032, reflecting a compound annual growth rate (CAGR) of 7.3% from 2023 to 2032.
    • The growth is driven by increasing globalization, the rise of e-commerce, and technological innovations in the financial sector. The demand for faster, more secure, and transparent payment solutions is compelling banks and fintech companies to enhance their offerings.
    • The market includes various channels such as bank transfers, money transfer operators, and card payments, with a significant share coming from business-to-business (B2B) transactions.

    Difference Between Old and New Systems

     

    Cross-Border Payment 

    		 Features Challenges
    Old System Cross-border payments relied on manual processes involving letters of credit, checks, and extensive documentation. It faced challenges such as high transaction costs, slow processing times, and limited access due to regulatory burdens.
    New System Incorporates technological advancements such as blockchain, digital wallets, and instant payment systems.

    Example:  peer-to-peer transactions and interlinked payment infrastructures

    		 challenges around scalability, security, regulation and standardization.

    Challenges to Cross-Border Payments

    • High Costs: Transaction fees remain a significant barrier, with various financial institutions imposing different charges that complicate cost-effectiveness.
    • Low Speed: Processing times can vary greatly, often taking several days due to intermediary banks and regulatory checks, which can frustrate users seeking rapid transactions.
    • Limited Access: Many individuals and businesses still face obstacles in accessing cross-border payment services, particularly in underbanked regions.
    • Insufficient Transparency: Users often lack clarity regarding fees, processing times, and the overall transaction process, leading to mistrust and reluctance to engage in cross-border transactions.
    • Regulatory Compliance: Navigating diverse legal frameworks across jurisdictions complicates transactions, with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations adding layers of complexity.

    Way forward: 

    • Adoption of Emerging Technologies: Leveraging blockchain, digital currencies, and AI can streamline processes, reduce transaction costs, and enhance transparency, making cross-border payments faster and more accessible.
    • Regulatory Harmonization and Collaboration: Promoting global regulatory alignment and fostering collaboration between financial institutions and governments can simplify compliance, improve transaction efficiency, and broaden access to underbanked regions.

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  • Pension Reforms

    What is the Unified Pension Scheme?

    Schemes | Governance | Mains Paper 2: Government Scheme/Policies

    Why in the News?

    The Union Cabinet approved the Unified Pension Scheme (UPS) for 23 lakh central government employees.

    About Unified Pension Scheme (UPS):

    Explanation
    Implementation Date Effective from April 1, 2025.
    Eligibility Central government employees with at least 10 years of service.
    Assured Pension
    • 50% of average basic pay over the last 12 months prior to retirement for employees with 25+ years of service.
    • Proportionate benefits for 10-25 years of service.
    Assured Minimum Pension ₹10,000 per month for employees with at least 10 years of service.
    Assured Family Pension 60% of the pension that the employee was drawing before their death.
    Inflation Protection
    • Pensions indexed to inflation;
    • Dearness Relief (DR) based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
    Government Contribution 18.5% of basic pay and DA, increased from 14% under the National Pension System (NPS).
    Employee Contribution 10% of basic pay and DA (same as under NPS).
    Lump Sum Payment on Superannuation One-tenth of the last drawn monthly pay (including DA) for every 6 months of completed service, in addition to gratuity.
    Option to Choose Employees can choose between UPS and NPS starting from the upcoming financial year; the choice is final once made.
    Beneficiaries
    • Initially benefits 23 lakh central government employees;
    • May extend to 90 lakh if adopted by state governments.
    Difference from NPS Unlike the market-dependent NPS, UPS provides a guaranteed pension amount, a minimum pension, increased government contribution, fixed family pension, and a lump sum payment at superannuation.

    Significance of the UPS

    • Financial Security: Guarantees a pension and family pension for stable post-retirement income.
    • Minimum Pension: Ensures at least ₹10,000 per month for retirees, supporting lower-income employees.
    • Inflation Protection: Indexes pensions to inflation, maintaining purchasing power over time.
    • Increased Benefits: Raises government contribution to 18.5%, enhancing employee retirement benefits.
    • Flexibility: Allows choice between UPS and NPS based on personal financial needs.
    • Family Support: Provides 60% of the pension to the spouse if the employee passes away.
    • Employee Welfare: Aligns with government goals to improve employee welfare and post-retirement life quality.

    PYQ:

    [2017] Who among the following can join the National Pension System (NPS)?

    (a) Resident Indian citizens only.

    (b) Persons of age from 21 to 55 only.

    (c) All State Government employees joining the services after the date of notification by the respective State Governments.

    (d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004.

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  • Languages and Eighth Schedule

    Classical Language Centres ask for autonomy

    Prelims Only | History | Mains Paper 1: Arts & Culture

    Why in the News?

    Classical Language Centres in India are seeking more autonomy to improve their effectiveness and address operational challenges.

    Classical Language Centres in India

    • India has designated 6 languages as classical: Tamil, Sanskrit, Telugu, Kannada, Malayalam, and Odia.
    • Special centres have been established to promote these languages.
    • Only the Centre for Tamil functions autonomously.
    • The centres for Telugu, Kannada, Malayalam, and Odia operate under the Central Institute of Indian Languages (CIIL) in Mysuru.

    About Classical Languages in India

    Aspect Details
    Recognized Classical Languages Tamil (2004), Sanskrit (2005), Kannada (2008), Telugu (2008), Malayalam (2013), Odia (2014).
    Additional Languages for Preservation Pali, Persian, Prakrit, and Farsi (Persian) as per the National Education Policy-2020.
    Criteria for Classical Language Status – High Antiquity: Recorded history of 1500-2000 years.
    – Valuable Heritage: Possesses ancient literature and texts.
    – Originality: Unique literary tradition, not borrowed from other languages.
    – Distinctness: Language and literature distinct from modern forms.
    Promotion of Classical Languages – International Awards: Two major awards for scholars in classical Indian languages.
    – Centre of Excellence: For studies in classical languages.
    – Professional Chairs: UGC requested to create chairs in Central Universities.
    The Eighth Schedule Lists 22 official languages, governed by Articles 344(1) and 351 of the Constitution. Includes Assamese, Bengali, Bodo, Dogri, Gujarati, Hindi, Kannada, Kashmiri, Konkani, Maithili, Malayalam, Manipuri, Marathi, Nepali, Odia, Punjabi, Sanskrit, Santali, Sindhi, Tamil, Telugu, and Urdu.
    Chronological Additions to the Eighth Schedule – 1950: Initially included 14 languages.
    – 1967: Sindhi added (21st Constitutional Amendment).
    – 1992: Konkani, Manipuri (Meitei), Nepali added (71st Constitutional Amendment).
    – 2003: Bodo, Dogri, Maithili, Santali added (92nd Constitutional Amendment).
    – 2011: “Oriya” replaced with “Odia” (96th Constitutional Amendment).

     

    PYQ:

    [2015] Which one of the following was given classical language status recently?

    (a) Odia

    (b) Konkani

    (c) Bhojpuri

    (d) Assamese

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  • Women Safety Issues – Marital Rape, Domestic Violence, Swadhar, Nirbhaya Fund, etc.

    Justice J.S. Verma Committee and Its Recommendations 

    Prelims Only | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Why in the News?

    • The recent brutal rape and murder case in Kolkata has sparked widespread calls for the death penalty for the accused.
      • The Justice J.S. Verma Committee, formed in response to the 2012 Delhi gang rape, recommended against the death penalty for rape, even in the rarest of rare cases, arguing that it would be a regressive step.

    About Justice J.S. Verma Committee Recommendations

    Recommendations on

    Explanation
    Rape • It recognized rape as a Crime of Power, not just passion.
    • Expand definition to include all forms of non-consensual penetration.
    • Remove marital rape exception; marriage should not imply automatic consent. (European Commission of Human Rights in C.R. vs U.K)
    Sexual Assault • Broaden definition to include all non-consensual, non-penetrative sexual acts.
    • Penalty: Up to 5 years of imprisonment or fines.
    Verbal Sexual Assault • Criminalize unwelcome sexual threats.
    • Punishable by up to 1 year in prison or fines.
    Sexual Harassment at Workplace • Include domestic workers under protections.
    • Replace internal complaint committees with Employment Tribunals.
    • Employers to compensate victims of sexual harassment.
    Acid Attacks • Propose a 10-year minimum punishment, separate from grievous hurt.
    • Establish a compensation fund for victims.
    Women in Conflict Areas • Review AFSPA; exclude government sanction for prosecuting sexual offenses by armed forces.
    • Appoint special commissioners to monitor offenses.
    Trafficking • Comprehensive anti-trafficking laws beyond prostitution.
    • Protective homes for women and juveniles overseen by High Courts.
    Child Sexual Abuse • Define ‘harm’ and ‘health’ in the Juvenile Justice Act to include both physical and mental aspects.
    Death Penalty • Opposed chemical castration and death penalty for rape.
    • Recommend life imprisonment.
    Medical Examination of Rape Victims • Ban the two-finger test; victim’s past sexual history should not influence the case.
    Reforms in Case Management • Set up Rape Crisis Cells, increase police accountability, allow online FIR filing.
    • Encourage community policing and increase police personnel.

    Union Cabinet’s Decision on the Death Penalty

    • The Union Cabinet, while clearing an ordinance on sexual assault in 2013, chose NOT to adopt the committee’s recommendation against the death penalty.
    • Key amendments included:
      • Section 376A: Death penalty for rape leading to the death of the victim or reducing her to a persistent vegetative state.
      • Section 376E: Death penalty for repeat offenders.
      • 2018 Amendments: Death penalty for gang rape of a victim under 12 years (Section 376DB) and life imprisonment for rape of a victim under 16 years (Section 376DA).
    • The Bharatiya Nyaya Sanhita (BNS) includes similar provisions for rape, with specific sections detailing the punishment, including the death penalty for certain cases.

    PYQ:

    [2014] We are witnessing increasing instances of sexual violence against women in the country. Despite existing legal provisions against it, the number of such incidences is on the rise. Suggest some innovative measures to tackle this menace.

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  • Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

    What is Sonoluminescence? 

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Why in the News?

    Recent studies have provided deeper insights into the mechanics of Sonoluminescence, particularly the conditions under which light is emitted from collapsing bubbles in liquids.

    What is Sonoluminescence?

    • Sonoluminescence is a phenomenon in which small gas bubbles in a liquid emit short bursts of light when exposed to intense sound waves.
    • The light is produced when the bubble undergoes rapid compression and expansion.
    • This is due to the alternating high- and low-pressure phases of the sound waves, causing the gas inside to heat up and emit light.
    • This phenomenon was discovered in 1934 by two German engineers while they were studying sonar technology, which uses sound waves to detect objects underwater.
    • They noticed that when a tiny bubble in a liquid was hit by strong sound waves, it emitted a brief flash of light.

    Mystery behind Sonoluminescence

    • Although the general mechanism is understood, the exact details of how the light is produced remain a mystery. 
    • Scientists are still exploring the precise processes that cause the gases inside the bubble to ionize and emit light at such high temperatures.

    Examples of Sonoluminescence

    • Controlled Experiments: In laboratory settings, scientists create sonoluminescence by trapping a bubble in a liquid and subjecting it to high-frequency sound waves.
    • Pistol Shrimp: When the shrimp (marine creature with a specialized claw) snaps its claw shut, it shoots out a jet of water that moves so fast it creates a low-pressure bubble. The bubble then collapses, producing a loud sound, intense heat, and sometimes a brief flash of light.

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  • Euthanasia Mercy Killing

    How to ensure dignity for the terminally ill?  

    Explained | Indian Society | Mains Paper 2: Health & Education

    Why in the News?

    The Supreme Court of India denied permission to the parents of Harish Rana, a 32-year-old man in a vegetative state for 11 years, to remove his Ryles tube which is a device used for feeding.

    • A Ryles tube, also known as a nasogastric (NG) tube, is a medical device used for various purposes related to nutrition and gastric management. It is inserted through the nose, passing through the nasal cavity, down the esophagus, and into the stomach.

    Recent Supreme Court Judgment:

    • The Bench headed by CJI D.Y. Chandrachud observed that the Ryles tube is not a life support system and therefore could not be withdrawn.
    • This decision has stirred legal and ethical debates, as the Supreme Court’s 2018 judgment permits the withdrawal of life support in terminal cases under the concept of “passive euthanasia.”
    • Passive euthanasia involves the withdrawal of medical treatment with the intention of hastening the death of a terminally ill patient. 
    • The Supreme Court initially legalized this practice in 2018, allowing patients to create a “living will” to refuse life-sustaining treatment when they are unable to communicate their wishes.

    Ethical Challenges:

    • Question of whether the decision benefits the patient: The judgment raises concerns about whether the decision benefits the patient, as prolonging life in such a condition may increase suffering.
    • Prolonged suffering: The principle of not causing harm is challenged since keeping the patient in a vegetative state with artificial feeding may lead to prolonged suffering for both the patient and their caregivers.
    • Against Right to Life and Death: The patient’s rights to a dignified life and death may be compromised which is addressed in various judgments like Common Cause v. Union of India (2018). This judgment recognised the right to die with dignity as part of the right to life under Article 21.
    • Autonomy: The patient’s right to choose, which is central to the concept of dignity, has been overlooked. The judgment did not consider the wishes of the patient or their family in determining the course of action.

    Need for Legal Clarity:

    • Distinguishing Euthanasia from Withdrawal of Life Support: There is a pressing need to legally clarify the difference between euthanasia and the withdrawal of futile life-sustaining interventions.  
    • Involvement of Medical and Ethical Experts: The decision-making process in such sensitive cases should involve palliative care physicians and ethical experts to ensure that medical and ethical considerations are fully addressed.
    • Advance Care Planning: Promoting Advance Medical Directives and Advance Care Planning is crucial to empower individuals to have control over their end-of-life decisions, ensuring that their rights to a good quality of life and death are respected.
    • Systemic Reforms: The judgment highlights the need for systemic reforms to avoid forcing families into legal battles and to ensure that patients’ rights are safeguarded with appropriate legal frameworks.

    Conclusion: The recent Supreme Court judgment highlights the urgent need for legal clarity, ethical considerations, and systemic reforms to protect patient rights and ensure dignity in end-of-life decisions.

    Mains question for practice:

    Q Discuss the need for legal clarity and systemic reforms to uphold the dignity and rights of patients in end-of-life decisions. (150 words) 10M

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  • Goods and Services Tax (GST)

     Time to reset the GST system   

    Explained | Economics | Mains Paper 3: Indian Economy

    Why in the News?

    Most states appear to be opposed to altering the current five primary GST rate slabs: 0%, 5%, 12%, 18%, and 28%.

    About Goods and Service Tax (GST):

    • The Goods and Services Tax (GST) in India was introduced by the Constitutional (One Hundred and First Amendment) Act of 2017. It is a unified tax system that replaced multiple indirect taxes levied by both the Central and State Governments.
    • Under GST, the Central (CGST) and state government (SGST) share the authority to levy and collect taxes on goods and services. In the case of Inter-state transactions, Integrated GST (IGST) is applicable.

    Essential Features of GST

    • Multiple Tax Levels: India’s GST system has multiple tax rates, with four primary tax rates (5%, 12%, 18%, and 28%). Additionally, there is a “zero rate” for certain essential goods and services (e.g. exports).
    • One Nation, One Tax: GST is based on the principles of value-added tax and applies to the supply of goods and services across the nation. It brings uniformity in the tax structure across India, eliminating the cascading effect of taxes.
    • Destination-Based Tax: This means that the revenue generated from GST is collected by the state where the goods or services are consumed, rather than where they are produced.
    • Eliminating Cascading Effect: Under the Indian GST system, businesses can claim input tax credit for the GST they paid on their purchases. This ensures that taxes are levied only on the value added at each stage of the supply chain.
    • Sector-specific Exemptions: Certain sectors, such as healthcare, education, and basic necessities like food grains, are either exempted from GST or have reduced tax rates to ensure affordability and accessibility.
    • Threshold Exemption: Small businesses with a turnover below a specified threshold (currently, it is 20 lakhs: supplier of both goods & services and 40 lakhs: for supplier of goods (Intra–State) in India) are exempt from GST.

    Present Challenges in GST Rates

    • Complexity and Confusion: The existence of multiple GST slabs creates confusion for businesses and consumers alike. Different rates for similar items lead to complications in compliance and classification, resulting in litigation and disputes.
      • For instance, the GST on cement is 28%, while essential items like milk are exempt, yet products derived from milk, such as skimmed milk powder, are taxed at 5%.
    • Anomalies in Taxation: There are notable inconsistencies in the application of GST rates. For example, the taxation of medical and life insurance premiums at 18% is seen as burdensome for individuals seeking financial protection against uncertainties.

    Need to simplify the current GST Slabs

    • Rationalization Proposal: There is a growing consensus among industry experts and some government officials that the GST structure should be simplified to a maximum of three slabs. 
      • This would not only streamline compliance but also reduce the administrative burden on businesses and the government alike.
    • Economic Stimulus: Simplifying GST rates could potentially stimulate economic activity by lowering indirect tax burdens, encouraging consumption, and ultimately leading to higher tax revenues.

    Why are states resisting?

    • Fear of Revenue Loss: Many states are apprehensive about the implications of changing the GST structure, fearing that it might lead to a decrease in their revenue streams.
    • Political Considerations: The political landscape also plays a role in the resistance to change. With upcoming elections and the need to maintain fiscal health, state governments may prioritize short-term revenue stability over long-term structural reforms.

    Way forward: 

    • Phased Implementation: Start by introducing pilot programs in select states or sectors to test the impact of GST simplification. This approach can help address specific concerns and refine the model before a nationwide rollout.
    • Revenue Protection Schemes: Develop robust mechanisms to compensate states for any potential revenue losses during the transition. This could involve a formula-based compensation fund or a temporary revenue guarantee.

    Mains PYQ: 

    Q Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions? (2020)

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