Meeting for the second time since the pandemic took hold in the country, the GST Council, last Friday, decided to relax late fees and interest payable for those taxpayers failing to file returns on time. For businesses with no tax liabilities under the indirect tax regime, the late fees were completely waived. This is in line with similar relaxations announced by the Centre in March, before the lockdown was declared, to ease compliance deadline worries of small businesses in particular. Since the full lockdown lasted longer than initially envisaged, and only began to unwind this month, the forbearance on offer was a necessary step. But given the extent of economic damage as well as the States’ fiscal positions in the period between these two meetings of the Council, its decisions are far from sufficient. In March, GST collections had slipped to ₹97,597 crore after surpassing the ₹1-lakh crore mark over the previous four months, and the numbers for April and May will not be known before July. Finance Minister Nirmala Sitharaman has told State representatives in the Council that just 45% of the indirect tax target had been met in the past two months. Although aware of the dwindling tax kitty during the lockdown, States have had their hands full managing the pandemic.

It is for this reason that several States have been urging the Centre to extend emergency fiscal support and release past GST compensation dues enshrined in the pact that allowed the new tax regime to take off three years ago. In its stimulus package, in May, the Centre enhanced States’ power to borrow, but only part of that was completely unconditional, and a large chunk was contingent on States undertaking specified reforms. These reforms may be long-pursued ideals, but whether this is the right time for prioritising them has been questioned. GST compensation (for revenue shortfalls in the first five years of GST) due to States for December 2019 to February 2020 was only released on June 4. Perhaps, it was timed to pre-empt discontent in the Council’s meeting. Yet, Centre-State ties could turn more fractious, especially in the GST Council where things have usually evolved with consensus so far — thanks to the failure to finalise the way forward for paying States the compensation. One of the ideas on the table, officially discussed for around two months, is to raise loans against future GST cess accruals in order to recompense States. Any decision on this front, along with proposed GST rate rationalisations in the textiles, footwear and fertilizers sectors that were on the Council’s agenda, can now only be expected at a special meet in July. Procrastination is not an appropriateresponse at this arc of the curve — be it the pandemic or the economy.

1) In March, GST collections had slipped to-----------------.

1. ₹97,596 crore
2. ₹97,597 crore
3. ₹99,597 crore
4. ₹87,597 crore
5. None of these

2) Which of the following statements are true according to the passage?

A. GST compensation due to States for December 2019 to February 2020 was only released on June 4.

B. For businesses with no tax liabilities under the indirect tax regime, the late fees were not completely waived.

C. Finance Minister Nirmala Sitharaman has told State representatives in the Council that just 45% of the indirect tax target had been met in the past two months.

1. Only A
2. Only c
3. Only B
4. Both A and C
5. All are true

3) What is the style of the passage?

1. Dogmatic
2. Patronizing
3. Pragmatic
4. Introspective
5. None of these

4) Find out suitable title for the passage.

1. GST compensation: a necessity of the Covid-19 pandemic
2. Financial Crisis of India
3. Both A and B
4. Economic decisions of the Centre
5. GST: an extra burden during the Corona Pandemic

5.Find out the synonym of the given word.

FORBEARANCE

1. Indulgence
2. Snag
3. Abominable
4. frenzy
5. None of these.

Answers :

1) Answer: B

It is mentioned in the passage “In March, GST collections had slipped to ₹97,597 crore after surpassing the ₹1-lakh crore mark over the previous four months, and the numbers for April and May will not be known before July.”

2) Answer: 4

It is mentioned in the passage

“GST compensation (for revenue shortfalls in the first five years of GST) due to States for December 2019 to February 2020 was only released on June 4.”

“Finance Minister Nirmala Sitharaman has told State representatives in the Council that just 45% of the indirect tax target had been met in the past two months.”

“For businesses with no tax liabilities under the indirect tax regime, the late fees were completely waived.”

3) Answer: C

Pragmatic- dealing with things sensibly and realistically in a way that is based on practical rather than theoretical considerations.

Patronizing- apparently kind or helpful but betraying a feeling of superiority; condescending.

Dogmatic- inclined to lay down principles as undeniably true.

Introspective- characterized by or given to introspection.

Hence, (C) is correct.

4) Answer: A

Option (A) perfectly depicts the main idea of the passage, hence it is correct.

5) Answer: A

Forbearance- patient self-control; restraint and tolerance; indulgence.

Snag- Obstacle

Abominable- extremely bad

Frenzy- Madness