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  • Person in news: Noor Inayat Khan

    World War II spy Noor Inayat Khan is now the first woman of Indian origin to be commemorated by the distinct blue London plaque.

    Try this PYQ:

    Q.A recent movie titled “The Man Who Knew Infinity” is based on the biography of-

    (a) S. Ramanujan
    (b) S. Chandrasekhar
    (c) S. N. Bose
    (d) C. V. Raman

    Noor Inayat Khan

    • A descendant of Tipu Sultan, Noor Inayat Khan became a secret agent during the Second World War.
    • She was the first woman radio operator to be infiltrated into occupied France in 1943 and worked under the code name ‘Madeleine’.
    • Renowned for her service in the Special Operations Executive, an independent British secret service set up by Winston Churchill in 1940.
    • Noor was Britain’s first Indian Muslim war heroine in Europe and the first female radio operator sent into Nazi-occupied France.
    • She was killed at the Dachau concentration camp in 1944 and was posthumously awarded the George Cross in 1949.

    What are Blue Plaques?

    • The idea of placing commemorative plaques on historically significant buildings was first mooted in 1863.
    • The idea was to honour important people and organisations that have lived or worked in London buildings.
    • Currently, the blue plaque scheme is being run by the charity organisation, English Heritage that takes care of historic sites and buildings in England.
    • While Khan is the first woman of Indian origin to be honoured with a blue plaque, it has been erected on houses and venues associated with several Indian men including Mahatma Gandhi, Raja Ram Mohun Roy, B R Ambedkar, Sardar Patel and Swami Vivekananda among others.
  • In news: Channapatna Toys

    The COVID-19 pandemic has dealt a crippling blow to the Channapatna Toys industry.

    Must read:

    GI Tags in news for 2020 Prelims

    All time GI tags in news

    Channapatna Toys

    • Channapatna toys are a particular form of wooden toys (and dolls) that are manufactured in the town of Channapatna in the Ramanagara district of Karnataka.
    • This traditional craft is protected as a geographical indication (GI) under the World Trade Organization, administered by the state govt.
    • As a result of the popularity of these toys, Channapatna is known as Gombegala Ooru (toy-town) of Karnataka.
    • Traditionally, the work involved lacquering the wood of the Wrightia tinctoria tree, colloquially called Aale mara (ivory-wood).
    • Their manufacture goes back at least 200 years according to most accounts and it has been traced to the era of Hyder Ali and Tipu Sultan in the 18th century.
    • The toys are laced with vegetable dyes and colours devoid of chemicals and hence they are safe for children.

    Back2Basics: Geographical Indications in India

    • A Geographical Indication is used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Such a name conveys an assurance of quality and distinctiveness which is essentially attributable to its origin in that defined geographical locality.
    • This tag is valid for a period of 10 years following which it can be renewed.
    • Recently the Union Minister of Commerce and Industry has launched the logo and tagline for the Geographical Indications (GI) of India.
    • The first product to get a GI tag in India was the Darjeeling tea in 2004.
    • The Geographical Indications of Goods (Registration and Protection) Act, 1999 (GI Act) is a sui generis Act for the protection of GI in India.
    • India, as a member of the WTO enacted the Act to comply with the Agreement on Trade-Related Aspects of Intellectual Property Rights
    • GI protection is granted through the TRIPS Agreement.
  • Striving for amicable relations with Pakistan

    The article pitches for the resumption of India-Pakistan relations. But there are obstacles on both the side which come in the way of such resumption.

    Pakistan and relations over Kashmir issue

    •  In July, the Turkish president had assured Pakistan’s parliament of his country’s support for Islamabad’s Kashmir stand.
    • More recently, Malaysia’s former Prime Minister, Mahathir Mohamad, has reiterated his backing for that stand.
    • Iran’s current negotiations with China do not necessarily mean alignment with the latter’s Kashmir policy.
    • Saudi Arabia and the Gulf countries invited official criticism in Pakistan first time for their refusal to back Pakistan in its disputes with New Delhi.
    • Pakistan’s foreign minister had made a remark against Saudi Arabia over its reluctance to convene the meeting of IOC.
    • Given the long history of Saudi-Pakistani relations, such remarks suggest a high degree of frustration.

    India’s vulnerabilities and relations with Pakistan

    • An excess of confidence and an unwillingness to think things through may be India’s vulnerabilities.
    • Army’s chief of staff made the statement this year, “If Parliament wants that area [PoK] should be ours at some stage, and if we get such orders, we will definitely act on those directions.”
    • Prime Minister made the statement regarding time of a week to 10 days to defeat the neighbouring country in case of war.

    Picturing resumption of relations with Pakistan

    • In case of war, aware of the total devastation to follow, neither side in an India-Pakistan conflict will press the nuclear button.
    • On the other hand, it is also possible, before any war, to imagine negotiations that lead, not necessarily in that order, to a resumption of trade, travel and normal relations, the renunciation of terrorism, and the restoration of the democratic rights of the people of Kashmir.
    • While no realistic person today expects such talks, it is not a crime to picture them.

    Conclusion

    Amicable relations with Pakistan may seem remote but they are worth striving for.

  • Changing India’s health delivery landscape through NDHM

    The National Digital Health Mission promises to transform the Indian healthcare system with the aid of technology. The article highlights the key aspects of the mission.

    Building integrated digital health infrastructure through NDHM

    • NDHM is based on the principles of health for all, inclusivity, accessibility, affordability, education, empowerment, wellness, portability, privacy and security by design.
    • NDHM will build the backbone necessary to create an integrated digital health infrastructure.
    • With its key building blocks HealthID, DigiDoctor, Health Facility Registry, Personal Health Records, Telemedicine, and e-Pharmacy, the mission will bring together disparate stakeholders and radically strengthen and, thus change India’s healthcare delivery landscape.
    • NDHM is also a purposeful step towards the achievement of the United Nations’ Sustainable Development Goal of Universal Health Coverage.

    Importance of digital intervention in health service

    • Digital interventions significantly enhance the outcomes of every health service delivery programme.
    • Importance of digital intervention is demonstrated in the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana scheme.
    • Under PM-JAY, 1.2 crore cashless secondary and tertiary care treatments have been provided using an indigenously developed state-of-the-art IT platform.
    • The Arogya Setu mobile app deploys ICT innovations for contract tracing.

    Principal highlight of NDHM

    1) Voluntary in nature

    • HealthID is entirely voluntary for citizens.
    • Its absence will not mean denial of healthcare to a citizen.
    • They can choose to generate their Health Account or ID using their Aadhaar card or digitally authenticable mobile number and by using their basic address-related details and email ID.
    • The use of Aadhaar, therefore, is not mandatory.

    2) Data sharing based on consent

    • Providing access to and sharing of personal health records is a prerogative of the HealthID holder.
    • The consent of the health data owner is required to access this information or a part of it.The consent can be withdrawn anytime.
    • The personal health record will enable citizens to store and access their health data, provide them with more comprehensive information and empower them with control over their private health records.

    3) Compliance with laws and fundamental rights

    • NDHM has been built within a universe of fundamental rights and legislation such as the Aadhaar Act and the IT Act 2008 as well as the Personal Data Protection Bill 2019.
    • This project is also informed by the entire gamut of Supreme Court judgments and core democratic principles of cooperative federalism.
    • The Mission gets its strategic and technical foundation from the National Digital Health Blueprint, the architectural framework of which keeps the overall vision of NHP 2017 at its core and ensures security and privacy by design.

    4) Reaching out to the unconnected population

    •  NHDM is a digital mission led by technology powered by the internet.
    • So, to reach out to and empower the large number of “unconnected” masses specialised systems are being built and off-line modules that will be designed to reach out to the “unconnected”.

    5) Partnership with all key stakeholders

    • The design of NDHM has been built on the principle of partnership with all key stakeholders — doctors, health service providers, technology solution providers and above all citizens.
    • Without their belief, trust, adoption, and stewardship, this mission will not achieve its desired result.

    Consider the question “Examine the key aspects of the National Digital Heath Mission and how it could help transform the Indian healthcare landscape?”

    Conclusion

    NDHM is a mission whose time has come because health is the first step towards self-reliance and only a healthy nation can become Atma Nirbhar.

  • Issue of GST compensation to states

    The article analyses the issue of GST compensation to states under GST regime for five years and how this has turned to be contentious issues after the economic disruption caused by Covid-19.

    The basis for compensation

    • Under Goods and Services Tax (GST) regime the Centre would make good the loss in the first five years if States faced revenue deficits after the GST’s introduction.
    • States sacrificed their constitutionally granted powers of taxation in the national interest.

    GST compensation cess

    • To pay the compensation to states, GST compensation cess was introduced.
    • When the GST compensation cess exceeded the amount that had to be paid to States, the Central government absorbed the surplus.
    •  Now, the economy has slowed down dramatically and the resources raised are insufficient.
    • The Centre is raising questions about whether it is legally accountable to pay compensation.
    • The constitutional framework that ushered in the GST does not provide an escape clause for ‘Acts of God’.

    Way forward

    • As stated by the Secretary of the GST Council in the tenth meeting, the central government could raise resources by other means for compensation and this could then be recouped by continuing the cess beyond five years.
    • Monetary measures are the monopoly of the central government.
    • Even borrowing is more efficient and less expensive if it is undertaken by the Central government.
    • As equal representatives of the citizens State governments expected the Centre to demonstrate empathy and provide them relief through the Consolidated Fund of India.

    Conclusion

    Central government should consider the legal provision in the GST regime and act in the spirit of cooperative federalism.

  • Ethics group on Civilsdaily’s Habitat | Link and instructions inside | Starting today

    Ethics group on Civilsdaily’s Habitat | Link and instructions inside | Starting today

    DISCUSSION, CASE STUDIES AND ANSWER WRITING, DOUBTS RESOLUTION, STRATEGY, AND REFERENCE MATERIAL

    Join the Ethics Habitat group (Click here)

    (Instructions at the bottom of this page)


    Hello students,

    It wouldn’t be wrong to assume that you know the importance of Ethics (GS Paper IV) for the UPSC exam. The news is that Ethics group is now available on Civilsdaily’s Habitat.

    Why join the Habitat group on ETHICS, you ask?

    1. Want to learn efficiently, quickly
    2. Want to spend less time googling and more time refining and polishing your concepts.
    3. Discussing advanced concepts, quality improvement tips, etc.
    4. If you are a “Level 10 Procrastinator” – Rest all types like the Sherlock Sharma “I speak to the point in chats”, Chatterbox Singh “Stop me if you can” or even the Narcissistic Kumar “I know my points are right” are welcome. We believe each one of us has something which can be brought to the table. Strategy to handle the case studies or list of examples to improve your answer – We want all of you to contribute to the discussions on the group.

    Smart people learn from everything and everyone, Average people from their experience and Stupid people already have all the answers.

    Disclaimer – While we look to build a closer relationship between teachers and students, we strongly discourage spoonfeeding.

    ethics for upsc

    Join the Ethics Habitat group (Click here)

    What is our philosophy?

    We have diminished, if not removed the barrier between teacher and student. Co-learning and co-creating knowledge is the need of the hour. The discourses, the vaad-vivaad on every topic, every theory and every issue pushes the boundaries of your thoughts. (It is required)

    Ethics for upsc

    Our approach to mains is decentralized. Ideas flow from every direction. Learning is about conversations, it is about stories that change you and your perception of reality – enter the matrix without the red pill if you may!

    Join the Ethics Habitat group (Click here)


    What all is going to be there?

    The group will be administered by Sukanya ma’am, UPSC toppers and in-service officers. From discussions to answer writing sessions are going to be held there in a planned manner.

    Ethics for UPSC

    Developing strategy:

    How to tackle Section A questions or what should be the approach to write the perfect case study? When so many beautiful minds will be at work, surely we will find answers.

    Planned progression:

    Discussion and syllabus coverage is going to be planned beforehand for a week to ensure we cover each and every topic in the syllabus. It is going to ensure discipline and consistency.

    Example:

    1-Sep-20 INTRODUCTION – DISCUSSION
    2-Sep-20 ETHICS AND HUMAN INTERFACE – DISCUSSION What is Ethics?; Origin of Ethics; Essence of Ethics; Determinants of Ethics; Consequences of Ethics
    3-Sep-20 GENERAL DISCUSSION 3 Schools of Ethics
    4-Sep-20 GENERAL DISCUSSION Approach to Ethics; Dimensions of Ethics; Ethics in Private and Public Relationships
    5-Sep-20 PREVIOUS YEAR QUESTIONS

    ethics plan for upsc

    Personalized and targeted approach:

    It’s personalized and customized to your individual learning competencies, situation, attitude, and aptitude. You are going to learn as per your learning competencies, we are just going to make it efficient.

    Answer writing and discussion:

    This is one of the most important offerings this group has to offer. Discussions on previous year questions and topic-based questions. Answers to them are reviewed and discussed thoroughly. You don’t want to miss this session.

    ethics for upsc

    Notes and references:

    All the important readings, references, and materials are suggested and can be shared on a regular basis. Based on the reference material shared, important topics are pointed out and discussed.

    Join the Ethics Habitat group (Click here)


    INSTRUCTIONS:

    1. Click on the link provided above.
    2. Choose Web Application. (Mandatory)
    3. Enter your details. Click on ‘Register a new account’.
    4. Choose a username.
    5. That is it. Welcome to Habitat.

    For access through Mobile app:

    1. Install the Mobile application (click here) from your Appstore.
    2. Click on Join a Workspace.
    3. Enter this in the Workspace URL – habitat.civilsdaily.com
    4. Use the same email id and password as you used above.

    Should you encounter any issue in this process or you have a query, reach out to us at +91 89299 87787 or hello@civilsdaily.com

  • [Burning Issue] Free Speech Vs. Contempt of Court

    Power of judiciary lies neither in deciding cases, nor in imposing sentences, nor in giving punishment for its contempt, but in the trust, confidence and faith of the general public. Criticism is important for it helps to give us a new perspective and opens our eyes to things we may have overlooked or never considered.

    But where do we draw the line between Contempt and criticism? Contempt of court is back in the news. This follows the initiation and conviction of contempt proceedings against a veteran advocate-activist by the Supreme Court of India, on its own motion.

    What is Contempt of Court?

    • Contempt of court, often referred to simply as “contempt”, is the offence of being disobedient to or disrespectful toward a court of law and its officers in the form of behaviour that opposes or defies the authority, justice and dignity of the court.

    History behind ‘Contempt’

    • The concept of contempt of court is several centuries old.
    • In England, it is a common law principle that seeks to protect the judicial power of the king, initially exercised by him, and later by a panel of judges who acted in his name.
    • Violation of the judges’ orders was considered an affront to the king himself.
    • Over time, any kind of disobedience to judges, or obstruction of the implementation of their directives, or comments and actions that showed disrespect towards them came to be punishable.

    Entry into our legal books

    • There were pre-Independence laws of contempt in India. Besides the early High Courts, the courts of some princely states also had such laws.
    • When the Constitution was adopted, contempt of court was made one of the restrictions on freedom of speech and expression.
    • Separately, Article 129 of the Constitution conferred on the Supreme Court the power to punish for its contempt.
    • Article 215 conferred a corresponding power on the High Courts.
    • The Contempt of Courts Act, 1971, gives statutory backing to the idea.

    What are the types of Contempt?

    In India contempt of court is of two types under the Contempt of Courts Act of 1971:

    • Civil contempt: Under Section 2(b), civil contempt has been defined as willful disobedience to any judgment, decree, direction, order, writ or another process of a court or willful breach of an undertaking given to a court.
    • Criminal contempt: Under Section 2(c), criminal contempt has been defined as the publication (whether by words, spoken or written, or by signs, or by visible representation, or otherwise) of any matter or the doing of any other act whatsoever which:
      1. Scandalizes or tends to scandalize, or lowers or tends to lower the authority of, any court, or
      2. Prejudices, or interferes or tends to interfere with the due course of any judicial proceeding, or
      3. Interferes or tends to interfere with, or obstructs or tends to obstruct, the administration of justice in any other manner.

    WAIT, What accounts for the scandalizing of the Judiciary?

    • Making allegations against the judiciary or individual judges, attributing motives to judgments and judicial functioning and any scurrilous attack on the conduct of judges are normally considered matters that scandalise the judiciary.

    What is not contempt of court?

    • Fair and accurate reporting of judicial proceedings will not amount to contempt of court.
    • Nor is any fair criticism on the merits of a judicial order after a case is heard and disposed of.
    • The Contempt Act was amended in 2006 to introduce truth as a valid defence if it was in the public interest and was invoked in a bonafide.

    Since we are done with what is not contempt, let us look at what constitutes contempt.

    Necessary ingredients for Contempt of Court in India

    1) Interference with Administration of Justice

    • In Brahma Prakash Sharma v State of UP, the Supreme Court had held that in order to constitute the offence of Contempt of Court, it was not necessary to specifically prove that an actual interference with the administration of justice has been committed.
    • The Court held that it was enough if a defamatory statement is likely or in any way tends to interfere with the proper administration of justice.

    2) Scandalizing the Court 

    • In the case of PN Dua v Shiv Shankar and others, the Supreme Court held that mere criticism of the Court does not amount to contempt of Court.
    • The Court observed that in a free marketplace of ideas, criticisms about the judicial system or Judges should be welcomed, so long as such criticisms do not hamper the administration of justice.
    • In the case of Baradanath Mishra v, the Registrar of Orissa High Court the court held that a common form of such contempt is the vilification (personal abuse) of the judges.

    3) Interference with due course of Justice

    • In Pritam Lal v. High Court of M.P the Supreme Court held that to preserve the proceedings of the Courts from interference and to keep the streams of justice pure, it becomes the duty of the Court, to punish the contemner in order to preserve its dignity.
    • No one can claim immunity from the law of contempt if his act or conduct in relation to Court interferes or obstructs the due course of justice.

    Issues with the Contempt

    Contempt is not just associated with judiciary, we have heard or read about journalist or cartoonist arrested for contempt of parliament. Now in general, Use of contempt power has the following issues:

    1) Curb on Civil Liberties

    • A law for criminal contempt gets in conflict with India’s democratic system which recognises freedom of speech and expression as a fundamental right.
    • In this manner, the judiciary draws resemblance with the executive, in using laws for a chilling effect on freedom of speech.
    • Former Justice of Supreme Court, V.R. Krishna Iyer, famously termed the law of contempt as “having a vague and wandering jurisdiction, with uncertain boundaries; contempt law, regardless of the public good, may unwittingly trample upon civil liberties”.

    2) Ambiguity of the concept

    • The definition of criminal contempt in India is extremely wide and can be easily invoked.
    • Also, suo motu powers of the Court to initiate such proceedings only serve to complicate matters.
    • Further, the Contempt of Courts Act was amended in 2006, to add truth and good faith as valid defences for contempt, but they are seldom entertained by the judiciary.

    3) Fair criticism is justified

    • In S.Mugolkar v. Unknown (1978), the Supreme Court held that the judiciary cannot be immune from fair criticism.
    • It held that contempt action is to be used only when an obvious misstatement with malicious intent seeks to bring down public confidence in the courts or seeks to influence the courts.

    4) Obsolete ideology

    • The punishment for contempt could procure submission but not respect for the judicial institution.
    • Already, contempt has practically become obsolete in foreign democracies, with jurisdictions recognising that it is an archaic law.
    • For example, England abolished the offence of “scandalizing the court” in 2013. Canada ties its test for contempt to real, substantial and immediate dangers to the administration. American courts also no longer use the law of contempt in response to comments on judges or legal matters.

     

    Need for the Contempt provisions: Arguments in favour

    https://d18x2uyjeekruj.cloudfront.net/wp-content/uploads/2020/08/cont.jpg

    1) Upholding the constitution

    • The powers of contempt of the Supreme Court and High Courts are independent of the Act 1971, that is, drawn from the Constitution.
    • So to delete the provision relating to ‘criminal contempt’ particularly ‘scandalizing of courts’ will have no impact on the power of the Superior Courts to punish for contempt in view of their inherent constitutional powers, as these powers are independent of statutory provisions.

    2) Ensuring Safeguards for Judiciary

    • The Judiciary is the guardian of rule of law in India and it needs to be made sure that it is protected with all kinds of problems that do or might hamper the fluent administration of justice.
    • The provision of powers to punish for contempt is significant for ensuring such respect of the Judiciary. Such kind of power is necessary to prevent interference with the course of justice and the authority of the court.

    3) Protecting public faith in Judiciary

    • Amendment in the definition of contempt may reduce the overall impact of the law and lessen the respect that people have for courts and their authority and functioning.
    • Also by abolishing the offence in India would leave a legislative gap.

    4) Impact on Subordinate Courts

    • The Constitution allows superior courts to punish for their contempt. The Contempt of Court Act additionally allows the High Court to punish for contempt of subordinate courts.
    • Thus, if the definition of contempt is removed, subordinate courts will suffer as there will be no remedy to address cases of their contempt.

    5) Fair criticism is not contempt

    • The 1971 Act contains adequate safeguards to exclude instances which may not amount to criminal contempt” as defined under Section 2(c) of the Act 1971.
    • It means that not all cases of contempt are considered.

    “Let me say at once that we will never use this jurisdiction as a means to uphold our own dignity. That must rest on surer foundations. Nor will we use it to suppress those who speak against us. We do not fear criticism, nor do we resent it. For there is something far more important at stake. It is no less than freedom of speech itself.”

    – Lord Denning

    Way forward

    • The Law Commission has held that there is a need to retain the provision regarding the contempt of courts. However, it also recommended the definition of contempt should be restricted to civil contempt, i.e., willful disobedience of judgments of the court.
    • The contempt of court should not be allowed to be used as a means to prevent criticisms.
    • In recent times, it is more important that courts are seen to be concerned about accountability, that allegations are done by impartial probes rather than threats of the contempt action, and processes are transparent.
    • If the contempt has to continue, a review mechanism within the judiciary should be there as a safeguard against judicial tyranny.

    In an era in which social media are full of critics, commentators and observers who deem it necessary to air their views in many unrestrained and uninhibited ways, the higher judiciary should not really be spending its time and energy invoking its power to punish for contempt of itself.

    Conclusion

    • Globalized human society as a singular entity and individual societies are moving towards the consensus of a world where an individual has greater autonomy, rights and dignity.
    • Healthy and constructive criticisms are the necessary features for the development of democracy.
    • In this perspective focus should be given precedence over ‘dignity of court’, but not blindly.
    • In this backdrop, there is a need to revisit the need for a law on criminal contempt, where India can learn from Britain which abolished the offence of scandalizing the judiciary as a form of contempt of court in 2013 based on the fact that the law was vague and not compatible with freedom of speech.

    Also read:

    Office of the Attorney General and its role in contempt cases


    References

    https://www.thehindu.com/opinion/lead/the-chilling-effect-of-criminal-contempt/article32198138.ece

    https://www.thehindu.com/news/national/the-hindu-explains-what-is-contempt-of-court/article32249810.ece

    https://www.prsindia.org/report-summaries/review-contempt-courts-act-1971

    https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1311828

    https://thewire.in/law/supreme-court-contempt-of-court-respect-constitution-power

    http://www.legalserviceindia.com/legal/article-2638-contempt-of-court-a-comprehensive-analysis.html

    https://www.thehindu.com/opinion/editorial/scandalising-as-contempt-the-hindu-editorial-on-proceedings-against-prashant-bhushan/article32198126.ece

  • What is Compensation of GST?

    With Centre-State friction over pending compensation payments under the Goods and Services Tax (GST) taking a new turn in the 41st GST Council to meet, the strain on the finances of states is likely to continue in the near term.

    Try this question from CSP 2018:

    Q.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 exempt under GST (Goods and Services Tax)?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1, 2 and 4 only

    (d) 1, 2, 3 and 4

    What is GST?

    • GST, being a consumption-based tax, would result in loss of revenue for manufacturing-heavy states.
    • 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).

    Compensation under GST regime

    • Due to the consumption-based nature of GST, manufacturing states like Gujarat, Haryana, Karnataka, Maharashtra and Tamil Nadu feared a revenue loss.
    • Thus, GST Compensation Cess or GST Cess was introduced by the government to compensate for the possible revenue losses suffered by such manufacturing states.
    • However, under existing rules, this compensation cess will be levied only for the first 5 years of the GST regime – from July 1st, 2017 to July 1st, 2022.
    • Compensation 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.

    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.

    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.

    Significance of GST compensation

    • 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.

    Back2Basics:

    Goods and Services Tax

  • GIS-enabled Land Bank System

    A prototype of the National GIS-enabled Land Bank System was e-launched by Commerce and Industry Ministry for six States based on which land can be identified for setting up industries.

    Try to answer this question in short:

    Q.Discuss the benefits of digitizing land records in India.

    Land Bank System

    • The system has been developed by the Integration of Industrial Information System (IIS) with state GIS (Geographic Information System).
    • IIS portal is a GIS-enabled database of industrial clusters/areas across the states.
    • On the system, more than 3,300 industrial parks across 31 states/UTs covering about 4,75,000 hectares of land have also been mapped out on the system.
    • The information available on the system will include drainage, forest; raw material heat maps (horticulture, agricultural, mineral layers); multilayer of connectivity.
    • IIS has adopted a committed approach towards industrial upgrading, resource optimization, and sustainability.

    Various stakeholders

    • The initiative has been supported by the National e-Governance Division (NeGD), National Centre of Geo-Informatics (NCoG), Invest India, Bhaskaracharya Institute for Space Applications and Geo-Informatics (BISAG), and Ministry of Electronics and Informational Technology.