A Reform Window
A Reform Window
A Reform Window
The financial year 2023-24 appears to have ended on a high on the revenue front. Net direct tax
collections rose 19.9% by mid-March to hit 97% of revised Budget targets, while the Goods and
Services Tax (GST) has yielded a robust ₹20.18 lakh crore. Gross GST revenues in March, for
transactions undertaken in February, crossed ₹1.78 lakh crore, the second highest tally since the
rollout of the indirect tax six and a half years ago. The only month when collection stood higher was
in April 2023, aided by year-end compliances. There is a good chance the same compliance effects will
lift this month’s tally past ₹2 lakh crore, marking a fresh high. Average monthly collections have
grown 11.6% in 2023-24 to over ₹1.68 lakh crore. The growth may be lower than the previous year’s
21.8% uptick but establishes a new normal for revenues that the coming year can build on. This
should settle the Centre’s concerns that the GST has not yielded expected returns. Central GST
collections in 2023-24 have overshot revised estimates presented in the interim Budget and the
Finance Ministry may have to revise its 2024-25 targets when it presents the full Budget as those can
now be achieved even if growth slips below 10%.
Some of the increase in collections may well stem from tax demands raised for past years and
tightening the screws on known evasion routes such as fake invoices and fraudulent input tax credits.
Yet, an uptick in growth of net GST revenues, which the government has started revealing since last
month, and the rise in gross collections from domestic transactions (17.6% compared with 13.6% in
February) suggest economic activity has been busy in the last quarter of 2023-24. Perhaps, the only
worry is a 5% decline in GST on goods imports during March, from an 8.5% rise in February, which
may signal some cutbacks in discretionary consumption. Yet, the overall GST trajectory should give
the next government comfort to focus on much-needed reforms to the tax. This must include
retrieving the plan to rationalise its multiple rates from deep freeze, expanding it to excluded items
such as electricity and petroleum products, and reducing high levies on key products such as cement
and insurance. The GST Compensation Cess, now being used to repay the COVID-19 pandemic-era
borrowings made to recompense States, raked in ₹1.44 lakh crore last year, and it is likely possible to
wind it down earlier than the extended March 2026 deadline. It is critical to resist the temptation to
replace it with a new levy except for truly demerit goods such as tobacco. Taxing hybrid vehicles over
40%, for instance, makes no sense, either for India’s green goals or boosting consumption and
spurring private investments. [Practice Exercise]
Red/blue coloring of words in the sentence indicates subject verb relationship; where ‘red’
denotes ‘subject’ and ‘blue’ denotes ‘verb’.
Vocabulary
1. Window (noun) – Opportunity, opening, imposing entity for example, Income tax,
chance, occasion, opportunity municipal tax etc.
2. Trajectory (noun) – Path, course, route, 13. Aid (verb) – Assist, help, support, back,
track, orbit bolster
4. Overhaul (noun) – recondition, renovate, 15. Mark (verb) – Denote, indicate, signify,
refurbish, repair, revamp represent, characterize
5. Front (noun) – Aspect, side, facet, face, part 16. Uptick (noun) – Increase, rise, growth,
upturn, surge
6. Yield (verb) – Produce, generate, give, 17. Establish (verb) – Set up, start, begin,
provide, supply initiate, create
7. Robust (adjective) – Strong, sturdy, tough, 18. New normal (phrase) – A previously
powerful, vigorous unfamiliar situation that has become
standard, typical, or expected
8. Undertake (verb) – Carry out, perform,
conduct, execute, engage in 19. Build on (phrasal verb) – Develop, expand,
extend, enhance, improve
9. Tally (noun) – Total, sum, count, record,
score 20. Settle (verb) – Resolve, conclude, finalize,
sort out, fix
10. Rollout (noun) – Launch, introduction,
release, presentation, unveiling 21. Overshoot (verb) – Exceed, surpass, go
beyond, top, outstrip
11. Indirect tax (noun) – A tax collected by an
intermediary from the person who bears the 22. Interim budget (noun) – A temporary budget
ultimate economic burden of the tax for that covers a short period until a full budget
example; GST, VAT, etc. is passed
12. Direct tax (noun) – A tax that is paid directly 23. Stem (from) (verb) – Originate, derive, come
by an individual or organization to the from, arise from, result from
24. Tightening the screw (phrase) – Applying 34. Era (noun) – Period, age, epoch, time, phase
more pressure or control, making things
stricter or more difficult
35. Borrowing (noun) – The act of taking or
25. Evasion (noun) – Avoidance, dodging, receiving something with the intention of
elusion, escape, shirking returning it
26. Input tax credit (noun) – A credit that a 36. Recompense (verb) – Compensate, pay,
business can claim for the tax paid on its reimburse, repay, reward
purchases, which can be used to offset its tax
liability on sales 37. Rake (in) (verb) – Earn, make, accumulate,
gather, collect
27. Signal (verb) – Indicate, show, signify,
denote, point to 38. Wind down (phrasal verb) – Slow down,
decrease, reduce, diminish, lessen
28. Cutback (noun) – Reduction, decrease, cut,
retrenchment, curtailment
29. Discretionary consumption (noun) – 39. Resist (verb) – Oppose, withstand, counter,
Spending on non-essential items or services, fight against, stand up to
based on individual choice or preference
40. Temptation (noun) – Allurement,
enticement, lure, attraction, seduction
30. Retrieve (verb) – Recover, regain, reclaim,
get back, restore
41. Demerit goods (noun) – Goods considered
31. Rationalise (verb) – Streamline, reorganize, harmful to society and individuals, often
rearrange, make more efficient, simplify subject to taxes or bans
2. GST revenues were robust, yielding ₹20.18 lakh crore, with gross GST revenues in March
crossing ₹1.78 lakh crore.
3. The March collections, for transactions in February, were the second highest since the GST
rollout, with a chance of surpassing ₹2 lakh crore in the following month.
4. Average monthly GST collections grew by 11.6% in 2023-24 to over ₹1.68 lakh crore,
establishing a new normal for revenues.
5. Central GST collections in 2023-24 exceeded revised estimates, suggesting the Finance
Ministry may revise 2024-25 targets.
6. Some increase in collections may stem from tax demands for past years and tightening
measures on evasion routes such as fake invoices.
7. The uptick in net GST revenues and gross collections from domestic transactions suggests busy
economic activity in the last quarter of 2023-24.
8. A concern is the 5% decline in GST on goods imports in March, possibly signaling cutbacks in
discretionary consumption.
9. The overall positive GST trajectory provides the next government with an opportunity to focus
on much-needed tax reforms.
10. Reforms should include rationalizing multiple GST rates, expanding the tax to excluded items,
and reducing high levies on key products.
11. The GST Compensation Cess, used to repay pandemic-era borrowings, generated ₹1.44 lakh
crore last year, with a possibility of winding it down earlier than March 2026.
12. It is critical to resist replacing the cess with a new levy except for demerit goods like tobacco.
13. Taxing hybrid vehicles over 40% is counterproductive to India's green goals and economic
growth.
14. The buoyant GST revenues create an opportunity to prioritize an overhaul of the tax system.
15. Addressing the GST's challenges and inconsistencies can strengthen its contribution to India's
fiscal health and economic growth.
C. Unpublished authors was expected by the magazine house for their forthcoming exclusive
issue on new trends.
D. Unpublished authors were expected by the magazine house for their forthcoming exclusive
issue on new trends.
18. Select the correct option to substitute the underlined segment in the given sentence.
He had given me that book in 1999.
A. did given me
B. was given me
C. gives me
D. gave me
19. Select the most appropriate synonym of the given word.
Predicament
A. Ease
B. Quandary
C. Blessing
D. Solution
20. Select the most appropriate ANTONYM of the underlined word.
His knowledge is superficial in nature.
A. Deviant
B. Profound
C. Artificial
D. Opposing
Comprehension:
In the following passage, some words have been deleted. Read the passage carefully and
select the most appropriate option to fill in each blank.
The modern world (1) ________ around technology. It has advanced dramatically in the
beyond twenty years and presently, we can't envision a world without PCs and cell phones.
The last century saw fast progressions in innovation and science which were unfathomable
previously. The internet is perhaps the most significant of these. Today, it is no longer a
science fiction concept to communicate with people anywhere in the world. While smart
phones keep us constantly connected to the virtual world, wireless internet has eliminated the
need to use a physical wire to connect with this world. Today, we rely on the internet to pay
our bills, book tickets, travel and conduct banking transactions. Li-Fi, a new technology that
uses light signals to (2) ________ data and reduces external interference, is currently in
development. On the other hand, such rapid progress comes with some (3) ________ .
Another sort of wrongdoing, known as digital wrongdoing, is the greatest danger to security
today. WannaCry was one of the biggest recent cyberattacks. It infected more than 230,000
computers in over 150 countries and threatened to erase valuable data unless ransom
payments were made. Personal and (4) ________ data continue to be stolen frequently, and
our country's cyber security is still lacking. It's also possible to say that people miss out on
important experiences in the real world because they spend so much time in the virtual world.
The distinction between the real and online worlds sometimes appears to blur, especially as
social media grows in popularity. For instance, the internet was said to have become so
addictive in China that programs were established to help people get off of it. However,
technology's benefits (5)________ its drawbacks. It all comes down to what we do with it. One
thing to keep in mind is that technology can serve us well but not completely
21. Select the most appropriate option to fill in blank no. 1.
A. rotates
B. revolves
C. squares
D. circles
22. Select the most appropriate option to fill in blank no. 2.
A. lay
B. disturb
C. transmit
D. communicate
23. Select the most appropriate option to fill in blank no. 3.
A. drawbacks
B. snag
C. hitch
D. liabilities
24. Select the most appropriate option to fill in blank no. 4.
A. secret
B. confidential
C. regular
D. common
25. Select the most appropriate option to fill in blank no. 5.
A. balances
B. shadows
C. outweigh
D. insides
Answers
1. C 2. A 3. A 4. D 5. C 6. D 7. C 8. A 9. D 10. D 11. C 12. A
13. B 14. D 15. A 16. A 17. B 18. D 19.B 20. B 21. B 22. C 23. A 24. B
25. C [Practice Exercise]
Explanations
1. C) Analytical
The passage presents a detailed analysis of the GST revenue trends, economic activity, and the
implications for future tax reforms. The tone is analytical, as it examines the data and discusses the
potential actions that could be taken to improve the GST system.
2. A) The growth rate of average monthly GST collections in the financial year 2023-24 was 11.6%,
which is lower than the previous year's 21.8% uptick, indicating a new normal for revenues.
The passage states that the average monthly collections have grown 11.6% in 2023-24, which is lower
than the previous year's 21.8% uptick. This suggests that the growth rate has slowed down, but it has
established a new normal for revenues that the coming year can build on.
3. A) The GST revenue collection in March for transactions undertaken in February crossed ₹1.78 lakh
crore, marking the second highest tally since the rollout of the indirect tax, indicating a consistent
growth in revenue.
The passage mentions that the gross GST revenues in March, for transactions undertaken in February,
crossed ₹1.78 lakh crore, which is the second highest tally since the rollout of the indirect tax. This
indicates that the GST revenue collection has been consistently high, contributing to the overall
buoyancy in revenues.
4. D) i and iii
The passage suggests that buoyant GST revenues provide an opportunity for the government to focus
on reforms, including rationalizing multiple rates (i). It also mentions the need to reduce high levies on
key products to boost consumption, which implies a consideration for reducing GST on certain goods,
though not necessarily luxury goods (iii). There is no indication that the GST Compensation Cess might
be extended beyond March 2026; in fact, the passage suggests it might be wound down earlier (ii is
incorrect).
5. C) iii only
The passage indicates that there was a rise in gross collections from domestic transactions by 17.6%
compared with 13.6% in February, suggesting an increase in collections in the last quarter of 2023-24
(iii). There is no mention of a significant decline (i) or stability (ii) in collections.
6. D) model
In the given sentence, the incorrect spelling is "modal," which should be spelled as "model." A "role
model" is a person who serves as an example or inspiration for others, particularly in their behavior,
attitudes, or success. The other words are spelled correctly: "greatness" (not "gratenes"), "successful"
(not "succesful"), and "inspired" (not "inspaired").
7. C) The correct spelling of 'sucsesful' is 'successful,' which means "having achieved a lot of success"
सपर, सम्ऩन्न.
8. A) Grow (verb) – Increase in size, expand, enlarge, develop, swell. फढ़ना
Antonym: Shrink (verb) – Reduce in size, contract, diminish, decrease, lessen. ससकुड़ना
Deviant (adjective) – Departing from usual or accepted standards, different, divergent. वविसरत
Artificial (adjective) – Made or produced by humans, not natural, synthetic. कृत्रत्रभ
Opposing (adjective) – Contrary, conflicting, in opposition to. ववयोधी
21. B) revolves' होगा क्मोंफ़क "revolves" का अथभ होता है फ़कसी िीज के िायों ओय घभ
ू ना मा केंदित होना।
जफफ़क 'rotates' का अथभ है घभ
ू ना, 'squares' का अथभ है भेर कयना, औय 'circles' का अथभ है घेया डारना,
जो इस सॊदबभ भें सही नहीॊ है ।
'Revolves' should be used because it means to focus or center around something. Whereas,
'Rotates' means to turn, 'Squares' means to match or align, and 'Circles' means to enclose or
surround, which don't fit in this context.
22. C) 'Transmit' का प्रमोग होगा क्मोंफ़क "transmit" का अथभ होता है डेटा को बेजना मा प्रसारयत कयना।
महाॉ ऩासेज भें िरयत्र के ववकास के सॊदबभ भें है , जोफ़क राइट ससग्नल्स का प्रमोग कयके डेटा को बेजने
की जानकायी दी जा यही है । 'Lay' का अथभ होता है यखना, 'Disturb' का अथभ होता है फाचधत कयना, औय
'Communicate' का अथभ होता है सॊवाद कयना, जो इस सॊदबभ भें सही नहीॊ है ।
'Transmit' should be used because it means to send or propagate data. Here, in the passage,
information is being given about transmitting data using light signals for the development of
technology.
23. A) 'Drawbacks' का प्रमोग होगा क्मोंफ़क "drawbacks" का अथभ होता है फ़कसी िीज़ के गर्
ु ों के खखराप
फ़कए गए दोष मा कसभमाॉ। इस सॊदबभ भें, इस वाक्म भें व्मक्त फ़कए गए गनतववचधमों मा प्रगनतमों के
साथ कुछ ददक्कतों की ििाभ हो यही है , त्जसका 'drawbacks' से सॊफचॊ धत है । 'Snag' एक फड़ी सभस्मा मा
रुकावट को सचू ित कयने के सरए प्रमक्
ु त होता है , 'Hitch' एक अिानक रुकावट को सॊकेनतत कयने के
सरए प्रमक्
ु त होता है, औय 'Liabilities' उत्तयदानमत्वों को सचू ित कयने के सरए प्रमक्
ु त होता है , जो इस
सॊदबभ भें सही नहीॊ है ।
Drawbacks' should be used because it means shortcomings or faults against the merits of
something. In this context, the sentence is discussing difficulties or issues associated with
certain activities or advancements, which is related to 'drawbacks'. 'Snag' is used to indicate a
major problem or obstacle, 'Hitch' signifies a sudden interruption, and 'Liabilities' refers to
responsibilities, which are not suitable in this context.
24. B) 'Confidential' का प्रमोग होगा क्मोंफ़क "confidential" का अथभ होता है गप्ु त मा व्मत्क्तगत, जो डेटा के
सॊदबभ भें िोयी हो सकते हैं। जफफ़क 'Secret' का अथभ है गप्ु त, 'Regular' का अथभ है साभान्म, औय
'Common' का अथभ है साधायर्, जो इस सॊदबभ भें सही नहीॊ हैं।
'Confidential' should be used because it means private or secretive, which can be stolen in the
context of data. Whereas, 'Secret' means hidden, 'Regular' means ordinary, and 'Common'
means usual, which don't fit in this context.
25. C) 'Outweigh' का प्रमोग होगा क्मोंफ़क "outweigh" का अथभ होता है फ़कसी एक फात का दस
ू ये ऩय अचधक
होना मा उससे ज्मादा भहत्वऩर्
ू भ होना। इस सॊदबभ भें, प्रौद्मोचगकी के राब उसकी हाननमों से अचधक होते
हैं, इससरए मह शब्द सही है। जफफ़क 'Balances' का अथभ होता है सॊतसु रत कयना, 'Shadows' का अथभ होता
है छामा डारना, औय 'Insides' का अथभ होता है अॊदय का दहस्सा, जो इस सॊदबभ भें सही नहीॊ है ।
'Outweigh' should be used because it means to exceed in value or importance. In this context, the
benefits of technology exceed its drawbacks, so this word is the correct choice. Whereas,
'Balances' means to stabilize, 'Shadows' means to cast a shadow, and 'Insides' refers to the inner
part, which don't fit in this context.