GST and Political Considerations Quiz

Questions and Answers

What is the projected share of agriculture in India's GDP by 2047?

5%-6%

15%-20%

10%-12%

7%-8% (correct)

Which initiative aims to provide better price realization for farmers?

eNAM (correct)

PM Kisan Samman Nidhi

Soil Health Card Scheme

Pradhan Mantri Fasal Bima Yojana

What is a prominent feature of the Goods and Services Tax (GST) in India?

Different rates for similar items (correct)

A single tax slab for all services

Complete exemption for essential goods

A flat tax rate of 18% for all goods

How does the GST rate on cement compare to that of essential items like milk?

GST on cement is higher than that on milk products Signup and view all the answers

What is one consequence of the inconsistencies in GST application?

Higher tax compliance costs for consumers Signup and view all the answers

Which of the following best describes the purpose of the Pradhan Mantri Fasal Bima Yojana?

To offer crop insurance to farmers Signup and view all the answers

What issue arises from taxing medical and life insurance premiums at 18% under GST?

It is seen as burdensome for individuals Signup and view all the answers

In the context of agricultural employment, what is projected for the workforce by 2047?

30% employment in agriculture Signup and view all the answers

What is the primary aim of debt financing in relation to agricultural infrastructure?

To enhance infrastructure and community farming assets Signup and view all the answers

Which scheme offers interest subvention for loans up to Rs. 2 crore?

PM-KUSUM Signup and view all the answers

Who are the key beneficiaries of the National Infrastructure Fund?

Farmers, FPOs, and PACS Signup and view all the answers

What does the extended credit guarantee cover for?

Farmer Producer Organizations via NABSanrakshan Signup and view all the answers

How many projects can each beneficiary support under the infrastructure fund?

25 projects Signup and view all the answers

What is the purpose of the online MIS platform in managing the fund?

To facilitate real-time monitoring and feedback Signup and view all the answers

Which of the following statements is TRUE regarding the National Investment and Infrastructure Fund?

It has a corpus of Rs. 4,00,000 crore Signup and view all the answers

What is the primary principle of destination-based tax in the context of Goods and Services Tax (GST)?

Revenue is collected in the state of consumption. Signup and view all the answers

Which organization is responsible for the management of the Infrastructure Fund?

NITI Aayog Signup and view all the answers

What is the primary aim of the BioE3 Policy?

To foster high-performance biomanufacturing Signup and view all the answers

Which of the following sectors is likely to be exempted or have reduced tax rates under the GST system?

Healthcare Signup and view all the answers

Which of the following societal issues is the BioE3 Policy intended to address?

Climate change and food security Signup and view all the answers

How does the input tax credit mechanism function under the GST system?

Businesses can claim taxes on their purchases. Signup and view all the answers

What percentage of GDP does India currently spend on research and development, according to the BioE3 context?

1% Signup and view all the answers

What is a potential challenge for state governments regarding GST implementation?

A need for short-term revenue stability Signup and view all the answers

Which businesses are currently exempt from GST based on turnover?

Businesses with turnover below 20 lakhs Signup and view all the answers

Which demographic represents a significant workforce potential for India's biotechnology sector?

Young, skilled workers under the age of 25 Signup and view all the answers

What type of infrastructure has the Indian government established to support the biotechnology sector?

Biotech parks and bio-incubators Signup and view all the answers

What approach can be taken to test the impact of GST simplification before a nationwide rollout?

Pilot programs in select states or sectors Signup and view all the answers

What mechanism can be developed to protect states from potential revenue losses during the GST transition?

Compensation fund based on a formula Signup and view all the answers

What challenge does the BioE3 Policy face regarding educational systems?

Educational curriculum does not meet industry demands. Signup and view all the answers

Which of the following is NOT a feature of the Indian GST system?

Revenue collected only at the point of sale Signup and view all the answers

Which of the following countries invests more than India in biotechnology R&D?

Israel Signup and view all the answers

What strategic initiative does the BioE3 Policy promote?

Research and development and entrepreneurship Signup and view all the answers

How many PVTGs are officially notified in the country?

95 Signup and view all the answers

Which tribes are mentioned as being included in the list of PVTGs?

Konda Reddi and Irular Signup and view all the answers

What was the increase in government contribution under the Unified Pension Scheme?

4% increase Signup and view all the answers

What is the employee contribution percentage under the Unified Pension Scheme?

10% Signup and view all the answers

How frequently is the lump sum payment due at superannuation under the Unified Pension Scheme?

Every 6 months Signup and view all the answers

What is the basis for the lump sum payment at superannuation under the Unified Pension Scheme?

Last drawn monthly pay Signup and view all the answers

What is the primary focus of the Unified Pension Scheme?

Enhancing retirement benefits for government employees Signup and view all the answers

How does the contribution percentage for government employees under the Unified Pension Scheme compare to the previous National Pension System?

It is higher than NPS Signup and view all the answers

Study Notes

Goods and Services Tax (GST) Insights

GST revenue is allocated to the state where goods or services are consumed, promoting fairness in taxation.
Businesses can claim input tax credit under GST, eliminating tax on the previously added value and preventing cascading effects.
Certain essential sectors like healthcare and food have either exemptions or reduced GST rates to ensure affordability.

Current Challenges in the GST System

Inconsistencies exist in GST rates; for example, cement is taxed at 28%, while essential food items are exempt, leading to compliance complexities.
Some states resist altering current GST slab rates (0%, 5%, 12%, 18%, 28%), prioritizing short-term revenue stability in light of upcoming elections.

Future Proposals for GST Reform

Recommendations include phased implementation of pilot programs to test GST simplification effects in select regions before nationwide adoption.
Proposed revenue protection schemes would safeguard state revenues during GST transition, potentially involving compensation funds.

Indian Agricultural Projections and Challenges

By 2047, agriculture's GDP share may reduce to 7%-8%, though it will still engage over 30% of the nation's workforce, necessitating structural reforms.
Government initiatives aim to enhance agricultural infrastructure and promote credit guarantee schemes for Farmer Producer Organizations (FPOs).

BioE3 Policy for Advancing Biotechnology

The BioE3 Policy, endorsed by the Union Cabinet, focuses on biomanufacturing to tackle issues like climate change and health.
India has a high potential workforce with 47% under 25, yet invests less than 1% of GDP in R&D compared to over 4% by countries like Israel.

Infrastructure Development in Biotechnology

Government efforts include establishing biotech parks and incubators to support sector growth, addressing health, agriculture, and energy challenges.
Current educational systems fall short in equipping students with industry-relevant skills, resulting in a skills mismatch.

Unified Pension Scheme Overview

The Unified Pension Scheme increases the government contribution to 18.5% of basic pay and dearness allowance, while employee contribution remains at 10%.
Benefits include a lump-sum payment every six months upon retirement, alongside gratuity, ensuring financial security for retirees.

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Description

Test your knowledge on the destination-based tax system introduced by GST and the political factors influencing its implementation. This quiz covers key concepts related to revenue collection and the challenges faced due to the political landscape. Understand the implications of GST and its impact on state finances.