Hindi English Translation || Editorial || An incomplete reform: on six years of the Goods and Services Tax

An incomplete reform: on six years of the Goods and Services Tax

Despite gains, the indirect tax regime (व्यवस्था, प्रशासन) is yet to become truly simple or efficient

India’s tryst (session, meeting, engagement) with the Goods and Services Tax (GST), launched at a special midnight Parliament session with unusual fanfare (धूमधाम), completed six years this month. Marking the occasion (अवसर), Finance Minister Nirmala Sitharaman emphasised (जोर देना) that the GST has moved the country towards a unified market (the economic term for a single market where goods, services, capital and people can move freely without regard to national/state boundaries) from a situation where each State mandated (instruct, direct, order, require, necessitate, make necessary, make something mandatory) different indirect tax structures and procedures, while inter-State borders were marked (remember, observe, recognize, acknowledge; indicate, signify, represent) by bottlenecked (a condition which appears as not solvable and so delays the process; setback, problem, issue, snag, difficulty) check posts that added to (increase, escalate, exacerbate, intensify, heighten) logistics costs and subtracted (घटाना, निकालना) from Indian goods’ competitiveness. Introduced soon after the demonetisation (the act of depriving a currency unit (note/coin) of its status as money) shock (झटका), the GST was viewed as another disruptor for the informal economy (अनौपचारिक अर्थव्यवस्था) and its initial technical, structural and procedural challenges took a while to sort out (सुलझाना). That all businesses with annual turnover of ₹5 crore will have to generate e-invoices (e-Invoice is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number will be issued against every invoice by the Invoice Registration Portal (IRP) to be managed by the GST Network (GSTN)) starting this August, and that there has been no ostensible (alleged, supposed, so-called, claimed, professed, reported ) pushback from smaller businesses over this, indicates that firms have gradually embraced (अंगीकार करना, अपनाना) the change. The Revenue Department’s crackdown (कार्रवाई) on fake invoicing and other techniques deployed (use, utilize, employ, exploit, make use of, take advantage of) by tax evaders (a person who illegally avoids paying tax) may compel the few outliers (a person/thing detached from the main group) to fall in line (obey, follow, adhere to, abide by, conform to/with, come to heel) too.

Tightening (make stricter, make more rigorous, make more stringent, stiffen, toughen) compliance (अनुपालन, अनुरूपता) and the post-pandemic (महामारी) rebound (recovery, revival, rallying, picking up, coming back (in value of something after decline)) in economic activity have helped improve revenues from the GST, which Ms. Sitharaman had suggested were underwhelming (unsatisfactory, not exciting, disappointing) as of (used to mention the time or date from which something begins) late 2021 when the Council set up a ministerial group to rationalise (modernise, streamline, make more efficient, hone, simplify, reorganize) the unwieldy (cumbersome, unmanageable, badly organized (administration/government system)) multiple rate structure and enhance tax inflows (a flow of a large amount of something (e.g. money/tax) to a particular place). This June, GST revenues crossed ₹1.6 lakh crore, only the fourth such occasion in its 72 months’ existence (अस्तित्व, वास्तविकता), lifting (increase, raise, boost, pick up) the average collections in the first quarter (a period of three months (considered as one-fourth of a year)) of this year to nearly ₹1.7 lakh crore — a healthy 12% over last year’s kitty (a sum of something (money/things) made up of small contributions). The recent revenue buoyancy (high level of activity, growth, development, progress, improvement, vigour/strength), even if it may face a blip (a minor, temporary change in something normal; a sudden, brief deviation from a regular trend) if consumption (the act of using resources to satisfy current needs and wants) growth falters (लड़खड़ाना) amid (के बीच, मध्य में) a slowing global economy, bodes well for States that were worried about their fiscal capacity (fiscal capacity is a measure of the potential ability of a particular government to generate revenue from their own sources (in order to provide public goods and carry out other functions)) after five years of assured revenues through GST compensation (payment, repayment, settlement (for loss/damage)) expired last July. For taxpayers and consumers, however, much remains to be done till the GST can be considered a Good, Simple Tax. GST Compensation cess (a form of tax charged/levied over and above the base tax liability of a taxpayer. A cess is usually imposed additionally when the state or the central government looks to raise funds for specific purposes) levies have been extended till at least March 2026, instead of the initial five-year tenure (period, time), due to the transitory (brief, short, short-term, temporary, momentary) shock of COVID-19 lockdowns (an emergency protocol implemented by the authorities that prevents people from leaving from a place; An extended state of confinement/encirclement/isolation of a person by the authority) on revenues. Dispute resolution remains a pain point (pain spot; a continuing/persistent problem) for industry, with GST appellate ((of a court) dealing with cases on appeal to review the decision of a lower court) tribunals still not set up. There is no road map (plan/strategy to do something successfully) in sight on the rate rationalisation (systematisation, formalisation, rationale, justification) exercise or the inclusion of excluded items such as electricity, petroleum and real estate, without which the efficiency gains from the GST remain constricted (limit, restrain, constrain, tighten, contract, shrink). The GST Council (a federal body (established under article 279A of the Constitution) that aims to bring together states and the Centre on a common platform for the nationwide rollout of the indirect tax reform) needs to meet more often and turn its to-do list (agenda, line-up, list of items) into a must-do list expeditiously (instantly, promptly, immediately, suddenly, quickly; swiftly).

Courtesy: The Hindu

Important Word List With Meaning

1.regime (noun)

Hindi Meaning - व्यवस्था, प्रशासन
English Meaning - system, arrangement, scheme, policy, method, mechanism.

2.fanfare (noun)

Hindi Meaning - धूमधाम
English Meaning - publicity, media attention, sensationalism, splendour, display/show.

3.occasion (noun)

Hindi Meaning - अवसर
English Meaning - a particular event.

4.emphasise (verb)

Hindi Meaning - जोर देना
English Meaning - underline underscore, highlight, stress, call/draw attention to.

5.subtract (verb)

Hindi Meaning - घटाना, निकालना
English Meaning - remove, deduct, take away.

6.shock (noun)

Hindi Meaning - झटका
English Meaning - disturbance causing volatility/uncertainty in an economy.

7.informal economy (noun)

Hindi Meaning - अनौपचारिक अर्थव्यवस्था
English Meaning - informal sector, grey economy is the part of an economy that is neither taxed, nor monitored by any form of government.

8.sort out (phrasal verb)

Hindi Meaning - सुलझाना
English Meaning - deal with something successfully; resolve (a problem/difficulty).

9.embrace (verb)

Hindi Meaning - अंगीकार करना, अपनाना
English Meaning - adopt, accept, endorse, approve, take up.

10.crackdown (noun)

Hindi Meaning - कार्रवाई
English Meaning - clampdown, getting tough/severe measures, elimination, eradication.

11.compliance (noun)

Hindi Meaning - अनुपालन, अनुरूपता
English Meaning - adherence, observance, conformity.

12.pandemic (noun)

Hindi Meaning - महामारी
English Meaning - the worldwide spread of a new disease; The illness spreads around the world and typically affects a large number of people across a wide area.

13.existence (noun)

Hindi Meaning - अस्तित्व, वास्तविकता
English Meaning - actuality, continuance, continuation.

14.falter (verb)

Hindi Meaning - लड़खड़ाना
English Meaning - lose strength, lose momentum, to stop making progress; to stop being successful.

15.amid (preposition)

Hindi Meaning - के बीच, मध्य में
English Meaning - in the middle of, surrounded by; during.

16.tryst (noun)

English Meaning - session, meeting, engagement.

17.mark (verb)

English Meaning - remember, observe, recognize, acknowledge; indicate, signify, represent.

18.move towards (something) (phrasal verb)

English Meaning - to change from a particular situation/condition to another; to advance, gravitate or progress in the direction of something.

19.unified market (noun)

English Meaning - the economic term for a single market where goods, services, capital and people can move freely without regard to national/state boundaries.

20.mandate (verb)

English Meaning - instruct, direct, order, require, necessitate, make necessary, make something mandatory.

21.inter- (prefix)

English Meaning - between.

22.mark (verb)

English Meaning - indicate, signify, represent.

23.bottleneck (noun)

English Meaning - a condition which appears as not solvable and so delays the process; setback, problem, issue, snag, difficulty.

24.bottlenecked (adjective)

English Meaning - jammed, congested, obstructed, constricted, blocked.

25.add to (phrasal verb)

English Meaning - increase, escalate, exacerbate, intensify, heighten.

26.logistics (noun)

English Meaning - the process of coordinating and moving/transporting resources (people, materials, goods, inventory and equipment) from the point of origin to the point of destination.

27.demonetisation (noun)

English Meaning - the act of depriving a currency unit (note/coin) of its status as money.

28.e-invoice (noun)

English Meaning - e-Invoice is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number will be issued against every invoice by the Invoice Registration Portal (IRP) to be managed by the GST Network (GSTN).

29.ostensible (adjective)

English Meaning - alleged, supposed, so-called, claimed, professed, reported.

30.pushback (noun)

English Meaning - resistance, opposition, negative reaction , unfavourable response.

31.deploy (verb)

English Meaning - use, utilize, employ, exploit, make use of, take advantage of.

32.tax evader (noun)

English Meaning - a person who illegally avoids paying tax.

33.outlier (noun)

English Meaning - a person/thing detached from the main group.

34.fall in line (phrase)

English Meaning - obey, follow, adhere to, abide by, conform to/with, come to heel.

35.tighten (verb)

English Meaning - make stricter, make more rigorous, make more stringent, stiffen, toughen.

36.post- (prefix)

English Meaning - after in time.

37.rebound (noun)

English Meaning - recovery, revival, rallying, picking up, coming back (in value of something after decline).

38.underwhelming (adjective)

English Meaning - unsatisfactory, not exciting, disappointing.

39.as of (phrase)

English Meaning - used to mention the time or date from which something begins.

40.GST Council (noun)

English Meaning - a federal body (established under article 279A of the Constitution) that aims to bring together states and the Centre on a common platform for the nationwide rollout of the indirect tax reform.

41.rationalise (verb)

English Meaning - modernise, streamline, make more efficient, hone, simplify, reorganize.

42.unwieldy (adjective)

English Meaning - cumbersome, unmanageable, badly organized (administration/government system).

43.inflow (noun)

English Meaning - a flow of a large amount of something (e.g. money/tax) to a particular place.

44.lift (verb)

English Meaning - increase, raise, boost, pick up.

45.quarter (noun)

English Meaning - a period of three months (considered as one-fourth of a year).

46.kitty (noun)

English Meaning - a sum of something (money/things) made up of small contributions.

47.buoyancy (noun)

English Meaning - high level of activity, growth, development, progress, improvement, vigour/strength.

48.blip (noun)

English Meaning - a minor, temporary change in something normal; a sudden, brief deviation from a regular trend.

49.consumption (noun)

English Meaning - the act of using resources to satisfy current needs and wants.

50.bode well/ill (verb)

English Meaning - augur, indicate, portend (a good/bad outcome).

51.fiscal capacity (noun)

English Meaning - fiscal capacity is a measure of the potential ability of a particular government to generate revenue from their own sources (in order to provide public goods and carry out other functions).

52.compensation (noun)

English Meaning - payment, repayment, settlement (for loss/damage).

53.cess (noun)

English Meaning - a form of tax charged/levied over and above the base tax liability of a taxpayer. A cess is usually imposed additionally when the state or the central government looks to raise funds for specific purposes.

54.levy (noun)

English Meaning - imposition, charging, collection (of a tax, fee, fine).

55.tenure (noun)

English Meaning - period, time.

56.transitory (adjective)

English Meaning - brief, short, short-term, temporary, momentary.

57.lockdown (noun)

English Meaning - an emergency protocol implemented by the authorities that prevents people from leaving from a place; An extended state of confinement/encirclement/isolation of a person by the authority.

58.resolution (noun)

English Meaning - solution, answer.

59.pain point (noun)

English Meaning - pain spot; a continuing/persistent problem.

60.appellate (adjective)

English Meaning - (of a court) dealing with cases on appeal to review the decision of a lower court.

61.tribunal (noun)

English Meaning - panel, committee (set up to resolve some disputes particularly).

62.road map (noun)

English Meaning - plan/strategy to do something successfully.

63.in sight (phrase)

English Meaning - near at hand; near/close (to be achieved/realized).