Topic – Indian Economy – Issues
4) Discuss the controversies associated with the proposal of imposition of a sugar cess? Suggest some long term measures to deal with the problems of sugar industry?(250 words)
Why this question
The primary purpose of GST is to create one nation, one tax, one market. All forms of cesses, surcharges etc were supposed to be subsumed under it. In this situation, talks of imposition of sugar cess raises several questions which needs to be examined.
Key demand of the question
The question demands us to bring out the various issues – constitutional, from perspective of separation of power, economic etc associated with imposition of sugar cess. Thereafter, it expects us to provide alternatives to resolving the crisis in the sugar sector.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer
Introduction – Explain the proposal of introducing sugar cess and mention what cesses are and its status under the GST regime.
Body – Discuss the various issues under heads like constitutional, economic etc. Analyze the case from both for and against perspective. Bring out issues like the basis of cess in GST regime, the authority of GSTN to impose cess etc. Post that, discuss the long term solutions to the crisis in sugar sector.
Conclusion – provide your view and way forward.