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September 4, 2025

India’s Tax Revamp, Green Schemes, and Global Economic Moves

K
Kalpana SharmaCurrent Affairs Editor & Content Lead

Key Highlights

  • Goods & Services Tax (GST) has been streamlined to two rates – 5% and 18% – effective from September 2025.
  • A ₹1,500 cr incentive package under the National Critical Mineral Mission will enable a 270 kt recycling capacity and attract ₹8 trn investment.
  • The Union Public Service Commission will inaugurate a Centre of Excellence to curate best practices for itself and state PSCs.
  • Chhattisgarh’s power generation has surged from 1,400 MW in 2000 to 30,000 MW, with plans to add another 30,000 MW.
  • India and Japan have launched a Joint Credit Mechanism under Article 6.2 of the Paris Agreement to strengthen carbon trading and green finance.

Detailed Insights

In the latest GST Council decision, the 12% and 28% rates are abolished, pushing a majority of goods – from medicine to renewable equipment – into the lower brackets. The change, slated for September 2025, leaves only selective sin‑goods at higher rates, while a few items such as sugary beverages and coal will see an increase.

The ₹1,500 cr scheme, valid from FY 2025‑26 to FY 2030‑31, offers a combined 20% Capex subsidy and incremental Opex incentives on sales. With caps of ₹50 cr for large entities and ₹25 cr for small ones, it aims to generate 70,000 jobs and extract 40 kt of critical minerals annually.

During a virtual conclave, UPSC Chairman Dr. Ajay Kumar announced the establishment of a knowledge hub that will collate SOPs, innovations and lessons learnt by state PSCs, thereby creating a pan‑India repository of recruitment best practices.

Chief Minister Vishnu Deo Sai highlighted Chhattisgarh’s power growth and the state’s intent to secure an additional 30,000 MW through fresh MoUs, ensuring 24/7 supply to local and neighbouring markets. A joint headquarters for state utilities in Nava Raipur is set to streamline operations.

The India‑Japan Joint Credit Mechanism, signed by the Ministry of Environment and the Government of Japan, is a landmark cooperation under Article 6.2, aimed at boosting carbon markets and supporting green technology investments amid mounting trade tensions.

Key Concepts

  • Goods & Services Tax (GST): A comprehensive indirect tax covering most goods and services, replacing previous cascading taxes.
  • National Critical Mineral Mission (NCMM): Government initiative to encourage recycling and extraction of minerals vital for technology and defence.
  • Joint Credit Mechanism (JCM): A bilateral framework to facilitate cross‑border carbon credit trading under the Paris Agreement.
  • Foreign Direct Investment (FDI): Investment by non‑resident entities that constitutes at least 10% ownership in an Indian enterprise.
  • Centre of Excellence: An institutional entity that consolidates research, best practices and standards for a specific field.

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