AIR 192 · CSE 2023 · GS3 · 62 pages

Mohit Gupta: GS3 answer copy

20 answers by Mohit Gupta, as written in the test. Each question opens a page with how other toppers answered it.

The questions

The answers

Question 1 · 10 marks · 209 words written

How far do you think the recent proposals to reform India's tax structure will help in improving India's tax buoyancy and base?

Opening · a date or context

Ans) Budget 2025 envisages Reforms as a Fuel of which central tax reforms are salient & main agenda.

Body · points and prose

Recent reforms in Tax Structure

  1. Income Tax Reforms : (a) New Tax Regime with less rates & simplified filing. (b) Rate structure rationalisation- Ex → 0 tax till 12,75,000 income. (c) Faceless & digital assessment
  2. Corporate Tax Reforms : (a) Reduction in rates (40 → 22% (2023)) (b) Easier Compliance & Advanced filing
  3. GST reforms → Inverted Duty structure correction → Advanced settlement → More items in 18% band

Help in Tax Buoyancy & Tax Base : (1) Simplified &

Easy filing → Reductions (SOG) removed. (2) Emphasis on formalisation & filing. Ex → GST filing = 2x since 2017 (3) Reduce processing & refund times. Ex → CBDT: 3 Day return. (4) Reduced load on middle class → Better filing as highest tax base (78%) (5) Incentive for MSME Formalisation (Ex: Rate reduction)

However various issues persist

(1) Low tax to GDP ratio → 11% (OECD=25%) (2) Delays in return processing. (3) Tax Evasion loopholes. Ex) shell companies (4) Issues of technical glitches. Ex) GSTN (5) MSME Dwarfism & informalisation.

Way Forward → Digital solutions for better collection → 360° monitoring for compliance → Nudging for taxpayers.

Close · a way forward

None written.