Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
2) Highlight the shortcomings in the goods and services tax (GST). How far can the recent findings of CAG strengthen the weak links of the reformed system of taxation in India? Discuss(250 words)
Why this question:
The article captures the findings of the recent report on the tax by the Comptroller and Auditor General of India (CAG) and highlights the shortcomings the GST reform has been facing in terms of implementation.
Key demand of the question:
The answer should evaluate the lacunae present and what are the problems in the implementation and what can be done to overcome these concerns and challenges.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Discuss about GST, its mandate and trace its coming till date.
Explain the lacunae being faced in implementation of the reforms.
Discuss that the major issues outlined by the CAG report is the lack of a system to match the invoices of buyers and sellers that would have closed interstitial spaces for tax evasion. The idea was to structure the system in such a way that there was no gap between two ends of a reported transaction.
Write a note on the findings of CAG and explain how these findings can be put to use to address the gaps in implementation of the reforms.
Conclude with way forward.