THE GIST of Editorial for UPSC Exams : 23 June 2020 (A case to exempt GST in Central Police Canteens (The Hindu))

A case to exempt GST in Central Police Canteens (The Hindu)

Mains Paper 2:Governance 
Prelims level: Central Armed Police Force
Mains level: Government policies and interventions for development in various sectors and issues arising out of their design and implementation

Context:

• Union Home Minister Amit Shah announced in early May that only indigenous products will be sold in all Central Police Canteens run by the Central Armed Police Force (CAPF). 
• This is a welcome step in keeping with Prime Minister Narendra Modi’s directive to promote indigenously manufactured products, or swadeshi products, in India. 
• As almost all products sold in CAPF canteens are indigenous, detailed instructions.......................

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Canteen sales:

• There are over 119 master canteens functioning as depots and 1,700 canteens running across the country catering to over 50 lakh family members of 10 lakh serving personnel. 
• the Central Police Canteen boasts of sales of over ₹2,800 crore worth of products annually. 
• Baba Ramdev’s Patanjali has already made inroads into these canteens with various products and is expected to expand. 
• The Khadi and Village Industries Commission is also channelising the sale of its products like textiles and uniform things through these canteens.
• Non-exemption of GST on all products sold through canteens has been a sore point among the CAPF personnel. 
• The rates at which the products are sold at present in the canteens are marginally less than the market rates. 
• Exemption of GST will reduce the costs further making the products more easily affordable and lucrative. 
• The government has to pay serious attention to this aspect. 

Paying VAT:

• Before the GST came into effect, certain States had exempted the levy of VAT while many others, including Delhi, were reluctant to extend this benefit. 
• While VAT was exempted for all Canteen Stores Department items, the Central Police Canteens in most States had to continue paying VAT.
• The authorities cannot ignore the fact that the CAPF is working in difficult conditions across the country at grave risk to their lives.  

Conclusion:

• While sale of indigenous products in CAPF canteens is a step in the right direction, the issue of ..........................

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Prelims Questions:

Q.1)With reference to the 'Atma-Nirbhar Bharat' Abhiyan, consider the following statements:
1. Prime Minister has recently announced a special economic package worth 20 lakh crore rupees for an 'Atma-Nirbhar Bharat' or self-reliant India. 
2. The special economic package is equivalent to almost 10 percent of India’s GDP.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer......................

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Mains Questions:
Q.1)The sale of indigenous products in CAPF canteens is a step in the right direction, the issue of exemption of GST needs to be addressed on priority. Critically comment on the statement.