[‘Daily News Updates’ will provide you with a simplified understanding of the important economic/financial events across the country]
GST Collections Amount to Rs. 1.02 Lakh Crores in May; Drop From Last Month
GST revenue collections remain over the Rs. 1 lakh crores figure for the eighth straight month in May 2021, at Rs. 1.02 lakh crores. It is 65 % higher than the collections in May 2020 (Rs. 62,009 crores) but much lower than the record collections in April 2021 (Rs. 1.41 lakh crores). However, there is a catch here. Owing to the second wave, taxpayers were given compliance relaxations in May. In normal circumstances, taxpayers have to file a GSTR-3B monthly return by the 20th of each month. But the date was extended to 4th June for taxpayers with a turnover of over Rs. 5 crores and to the first week of July for taxpayers with a turnover of less than Rs. 5 crores. Thus, the actual collections in May can be ascertained once these small taxpayers file their returns next month.
Read further- GST Explained and Final Structure of the GST
What are Vaccine Passports, and Why is India Against it?
Union Health Minister Dr. Harsh Vardhan, at the G-7 meet, expressed his concerns over the so-called ‘vaccine passport’ as such a scheme would be hugely discriminatory towards the developing countries which had vaccinated only a small percentage of their population. Even the WHO has advised countries against using vaccination certification as a pre-requisite for international travel because of ‘critical unknowns’ in the efficacy of vaccines and its limited availability. What exactly is a ‘vaccine passport’?
Since the onset of the COVID-19 pandemic, international travellers have been required to produce various documents like negative test results. This is the idea of ‘vaccine passports,’ a document that determines a person’s eligibility to travel to different countries and destinations. While the concept is not new (as many countries have, from time to time, required passengers from specific countries to prove that they have been vaccinated against certain diseases), there is an attempt to devise a general regime ‘of compulsory documents’ that ‘will need a proper system and standards to be devised to be non-discriminatory and implementable by all.’
Several countries are working on systems and mobile applications that can enable them to electronically verify the vaccination status of an individual and their COVID test results. Passengers will be required to upload the required documents on these systems to prove that they have been vaccinated and are eligible to travel. For instance, “the UK, meanwhile, updated its National Health Service app last week to let fully vaccinated users prove their status when traveling abroad, coinciding with an easing of travel rules.”
The issue has become polarising, as it raises questions of security and privacy, attempts to restrict people’s freedom, and exposes the fault lines between the developed countries and the developing countries (with the latter being in a disadvantaged position). It also creates perverse incentives for the developing countries as their priorities in the domestic vaccination programmes might change from targeting the vulnerable population to diverting the limited vaccines towards international passengers.
India’s Forex Reserves Crosses $600 Billion Mark
India’s foreign exchange reserves rose to a record $600 billion, according to RBI Governor Shaktikanta Das. Previously, we had published an article in 2017 when the Forex reserves had crossed the Rs. 400 billion mark, explaining the importance of Forex reserves-
“Foreign exchange (FOREX) reserves are the assets held by a Central Bank of a country in foreign currencies. The Central Bank maintains FOREX to keep its currency’s exchange rate stable.
India has a flexible exchange rate system. But the RBI intervenes in the currency market from time to time, to prevent short-term volatility in the exchange rate of the rupee.
The RBI maintains the stability of rupee by buying and selling of foreign currencies. For example- If the rupee depreciates against the dollar, the RBI sells FOREX in the market and buys rupee. It decreases the supply of rupee in the market and its price (exchange rate) appreciates.”
Also, “Foreign exchange reserves help to keep rupee stable and protect against external shocks.” When capital inflows are impacted due to a crisis, Forex reserves can help maintain the level of crucial imports till the crisis subsides.
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