Hindi English Translation || Editorial || ​Required reforms: On reforms to the GST system

​Required reforms: On reforms to the GST system

Risking some revenue to boost consumption will help the economy

The central government’s proposals to reform the Goods and Services Tax (GST) system are bold and timely (समयोचित, उचित समय पर). They stand to benefit the middle class and the business community, as the government claims (दावा करना). Shifting 99% of the items in the 12% slab to a 5% tax rate, and 90% of the items in the 28% slab to 18% will substantially (काफ़ी हद तक, पर्याप्त रूप से) reduce the tax burden (कर का बोझ) on most consumers. Rationalising the number of slabs and shifting similar products to the same slab will also reduce ambiguity (अस्पष्टता, अनिश्चितता) and litigation (मुकदमा, कानूनी कार्यवाही), which are the major issues businesses have with the current GST setup (व्यवस्था, ढाँचा). Further, while most of the focus has been captured by the rate restructuring (पुनर्गठन करना) proposals (प्रस्ताव, सुझाव), the procedural (प्रक्रियात्मक, प्रणालीगत) reforms regarding (के संबंध में, के बारे में) registration, return filing and refunds are equally important. Simplifying GST is not just about reducing the multiplicity (बहुलता, प्रचुरता) of rates but also about making it easier and less time-consuming (समय लेने वाला, थकाऊ) for tax-payers to navigate (to make one’s way through a particular web site) the system. Easing registration, simplifying returns and speeding (तेज़ करना, शीघ्र करना) up refunds, therefore, are welcome (स्वागतयोग्य, मनभावन) improvements the Centre is pursuing (engage in, conduct, take part in, take up (an activity); go after; be intent on, push towards, aim at/for, push/work towards). Combined with the new Income Tax Bill and the rejig (change, regrouping, reorganization, rearrangement, reshuffle) of income-tax slabs (category) in this year’s Budget, these GST reforms will highlight (emphasize, underscore, underline, accentuate, point up, call attention to, focus attention on) 2025 as a watershed (it used to mean ‘important changes’ or the ‘turning point’ in a situation or event. The event that marks a historic change; historic, milestone, landmark (moment); critical moment, decisive moment) year for tax reform — direct as well as indirect tax. While the government has not made an official estimate of what the revenue impact of these reductions will be, sources have said that it expects a hit (blow, crash). Two years ago, the Reserve Bank of India had estimated that the average GST rate was 11.6%, which is now expected to fall (drop, dip, plunge, sink, decline) substantially. However, the government is confident that an increase in consumption and a widening (an increasing, an expanding, an intensifying) of the tax base (the total value of all of the assets, income, and economic activity that can be taxed by a taxing authority, usually a government) will offset (even up, counterbalance, equalize, neutralize; make amends for, compensate for) most of the revenue loss. With a large number of items set to be taxed at just 5%, the incentives (impetus, boost, stimulus, fillip) for input tax credit (Input Tax Credit (ITC) under the Goods and Services Tax (GST) allows businesses to reduce their tax liability when they sell products or services by claiming credit for the GST paid on purchases) scams and tax evasion (an illegal action in which a person or company purposely avoids paying a true tax liability) will also be substantially removed.

A willingness (readiness, preparedness, disposition, wish, desire, eagerness) to risk some amount of revenue in order to (so as to, with the aim or purpose of doing something) boost domestic consumption bodes well for the economy, especially at a time when export demand is faltering (to lose intensity or strength, especially gradually; hesitate, be undecided, waver, vacillate, fluctuate, be irresolute, show weakness, shrink) due to (because of, as a result of, thanks to, on account of, owing to) tariff uncertainties (unpredictability, unreliability, riskiness/precariousness). It remains to be seen how the State governments will react to this proposed revenue surrender (it refers to the transfer of collected revenues (like taxes, duties, fees) from one authority or department to the Consolidated Fund or Treasury). They have already been lobbying the Sixteenth Finance Commission (a constitutional body appointed by the President every five years to make recommendations on sharing of taxes between the Centre and the States) to increase the share of States in central taxes. These tax cuts will also make it even more unlikely (not likely, doubtful, improbable, questionable, debatable) that petroleum products — a major source of States’ revenues — will be included in the GST any time soon (in near future). Politically, it will be difficult for the States to directly oppose these rate reductions, but they might instead pressure the Centre for compensation (payment, repayment, settlement (for loss/damage)) once again. Crucially, the Centre will be reaching out (contact someone to obtain/offer help/assistance/cooperation) to the States over the next few weeks to put forth (propose, suggest, offer, present, submit, recommend, put forward) its case (statement, argument, claim, reasoning (supporting one side of a debate)). It is important that their concerns are taken on board as well.

Courtesy: The Hindu

Important Word List With Meaning

1.timely (adjective)

Hindi Meaning - समयोचित, उचित समय पर
English Meaning - prompt, well timed, at the right time, opportune, appropriate.

2.claim (verb)

Hindi Meaning - दावा करना
English Meaning - assert, affirm, insist, state, argue, contend.

3.welcome (adjective)

Hindi Meaning - स्वागतयोग्य, मनभावन
English Meaning - pleasing, agreeable, favourable, promising, much needed.

4.substantially (adverb)

Hindi Meaning - काफ़ी हद तक, पर्याप्त रूप से
English Meaning - significantly, considerably, appreciably.

5.tax burden (noun)

Hindi Meaning - कर का बोझ
English Meaning - tax incidence/burden falls on the public.

6.ambiguity (noun)

Hindi Meaning - अस्पष्टता, अनिश्चितता
English Meaning - inexactness, doubtfulness, obscurity/opacity.

7.litigation (noun)

Hindi Meaning - मुकदमा, कानूनी कार्यवाही
English Meaning - suit, court case, case, legal action, law suit.

8.setup (noun)

Hindi Meaning - व्यवस्था, ढाँचा
English Meaning - system, format, structure.

9.restructure (verb)

Hindi Meaning - पुनर्गठन करना
English Meaning - reorganize, reshuffle, rearrange, revise, rationalize, reform.

10.proposal (noun)

Hindi Meaning - प्रस्ताव, सुझाव
English Meaning - plan, programme, suggestion, recommendation.

11.procedural (adjective)

Hindi Meaning - प्रक्रियात्मक, प्रणालीगत
English Meaning - systemic, systematic, methodical, operational, organizational.

12.regarding (preposition)

Hindi Meaning - के संबंध में, के बारे में
English Meaning - about, relating, on the subject of, concerning, with regard to, with reference to.

13.multiplicity (noun)

Hindi Meaning - बहुलता, प्रचुरता
English Meaning - a large number of, a lot of, a variety of, a host of; abundance, scores.

14.time-consuming (adjective)

Hindi Meaning - समय लेने वाला, थकाऊ
English Meaning - tedious, laborious, tiresome, prolonged, protracted, long-drawn-out.

15.speed up (verb)

Hindi Meaning - तेज़ करना, शीघ्र करना
English Meaning - expedite, accelerate, step up, quicken.

16.slab (noun)

English Meaning - category.

17.stand to do/have something (phrase)

English Meaning - to be likely to do or have something.

18.rationalise (verb)

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

19.navigate (verb)

English Meaning - to make one’s way through a particular web site.

20.ease (verb)

English Meaning - facilitate, make easy, simplify, assist/help.

21.improvement (noun)

English Meaning - development, progress, progression, advancement.

22.pursue (verb)

English Meaning - engage in, conduct, take part in, take up (an activity); go after; be intent on, push towards, aim at/for, push/work towards.

23.Income Tax Bill, 2025 (noun)

English Meaning - The Income-Tax Bill, 2025 was introduced in Lok Sabha on February 13, 2025. It seeks to replace the Income-Tax Act, 1961. The Bill retains most of the provisions of the 1961 Act. The new Bill removes redundant provisions and archaic language, and is likely to come into effect from April 1, 2026.

24.rejig (noun)

English Meaning - change, regrouping, reorganization, rearrangement, reshuffle.

25.highlight (verb)

English Meaning - emphasize, underscore, underline, accentuate, point up, call attention to, focus attention on.

26.watershed (noun)

English Meaning - it used to mean ‘important changes’ or the ‘turning point’ in a situation or event. The event that marks a historic change; historic, milestone, landmark (moment); critical moment, decisive moment.

27.hit (noun)

English Meaning - blow, crash.

28.fall (verb)

English Meaning - drop, dip, plunge, sink, decline.

29.a widening (noun)

English Meaning - an increasing, an expanding, an intensifying.

30.tax base (noun)

English Meaning - the total value of all of the assets, income, and economic activity that can be taxed by a taxing authority, usually a government.

31.offset (verb)

English Meaning - even up, counterbalance, equalize, neutralize; make amends for, compensate for.

32.set (to) (verb)

English Meaning - prepare, arrange, make ready.

33.incentive (noun)

English Meaning - impetus, boost, stimulus, fillip.

34.input tax credit (ITC) (noun)

English Meaning - Input Tax Credit (ITC) under the Goods and Services Tax (GST) allows businesses to reduce their tax liability when they sell products or services by claiming credit for the GST paid on purchases.

35.tax evasion/terrorism (noun)

English Meaning - an illegal action in which a person or company purposely avoids paying a true tax liability.

36.evasion (noun)

English Meaning - avoidance, dodging, bypassing, sidestepping, circumvention.

37.willingness (noun)

English Meaning - readiness, preparedness, disposition, wish, desire, eagerness.

38.in order to (phrase)

English Meaning - so as to, with the aim or purpose of doing something.

39.bode well/ill (verb)

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

40.falter (verb)

English Meaning - to lose intensity or strength, especially gradually; hesitate, be undecided, waver, vacillate, fluctuate, be irresolute, show weakness, shrink.

41.due to (phrase)

English Meaning - because of, as a result of, thanks to, on account of, owing to.

42.tariff (noun)

English Meaning - a tax imposed by one country on the goods and services imported from another country.

43.uncertainty (noun)

English Meaning - unpredictability, unreliability, riskiness/precariousness.

44.revenue surrender (noun)

English Meaning - it refers to the transfer of collected revenues (like taxes, duties, fees) from one authority or department to the Consolidated Fund or Treasury.

45.lobbying/lobby (noun)

English Meaning - a group of people attempting to influence (the government / its official group/elected legislators) to create the actions, policies, or decisions to help a particular organization.

46.Finance Commission (noun)

English Meaning - a constitutional body appointed by the President every five years to make recommendations on sharing of taxes between the Centre and the States.

47.Sixteenth Finance Commission (noun)

English Meaning - It was constituted on 31.12.2023 with Shri Arvind Panagariya, former Vice-Chairman, NITI Aayog as its Chairman. The Sixteenth Finance Commission has been requested to make its recommendations available by October, 31, 2025, covering an award period of 5 years commencing 1st April, 2026.

48.unlikely (adjective)

English Meaning - not likely, doubtful, improbable, questionable, debatable.

49.any time soon (phrase)

English Meaning - in near future.

50.compensation (noun)

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

51.GST Compensation (noun)

English Meaning - Under the GST law (In India), state governments are guaranteed full compensation for any revenue loss for the first five years after the introduction of the goods and services tax (GST) in July 2017. The compensation is a gap between actual revenue collected and projected revenue.

52.reach out (phrasal verb)

English Meaning - contact someone to obtain/offer help/assistance/cooperation.

53.put forth (phrase)

English Meaning - propose, suggest, offer, present, submit, recommend, put forward.

54.case (noun)

English Meaning - statement, argument, claim, reasoning (supporting one side of a debate).

55.take something on board (phrase)

English Meaning - to decide to accept an idea; to accept an information; to understand or consider a suggestion.