PUBLIC ADMINISTRATION – Strategy: How to Prepare Better to Deal With Uncertainties

The recent performance of Public Administration has not been very encouraging. A number of factors have contributed to the same which include relatively tougher papers; abstract questions; stricter evaluation; less generous marking; mysterious scaling/moderation by UPSC etc.
However, as the number of ‘Pub Ad’ applicants reduces year by year (given its performance), it may be assumed that the present trend is unlikely to continue for long.
But, apart from these factors that are ‘external’ to the aspirants, some ‘internal’ factors also have contributed to the subject’s overall below par performance. Choosing ‘Pub Ad’ based on bandwagon effect; writing very general answers in Paper-2; not stressing enough on basics; attempting to write scholarly answers etc. are some of the most prominent factors. It is because of some of these general mistakes made frequently by aspirants that they end up scoring low in ‘Pub Ad’. And, the situation becomes even more difficult when these mistakes are not figured out.
To address the same, this article provides a detailed strategy while highlighting these issues wherever they deserve mention.
Coming straight to the core issue of scoring good marks in Public Administration, you will need the following:
  • Clear Concepts – More on this will be explained later in the article
  • Ability to express the concept clearly (logically) on paper which requires a lot of writing practice
  • Ability to relate the subject with current affairs especially administrative and political issues
  • Ability to substantiate your argument with facts, evidence, and committee reports etc.
  • Imparting these angles to almost every answer that you write
  1.  Backing you answer with theoretical foundations and perspective of various thinkers
  2. Contemporary Administrative Practices
  3. Comparative Public Administration angle
Before dealing with the above, an even more important issue deserves discussion. And, this is one of the most frequently made mistakes.
Why should you choose or not choose Public Administration?
You should NOT take the subject solely because
  • Some neighbour/friend/relative/acquaintance IAS officer took it and scored good marks
  • It overlaps with GS II, III & IV substantially
  • Syllabus is shorter and can be finished earlier than most other optional papers
  • It seems easy to comprehend and effort is less
You should GO for it
  • If administrative matters in general genuinely evoke your interest
  • If you enjoy reading highly abstract and theoretical stuff for e.g. perspective of administrative thinkers
  • If you really like reading Indian Polity.
  • If you have some experience of working in an organization and you have begun to show interest in group management/organizational behaviour/personnel management etc.
But, please do not choose the subject if you are not interested in it. This might sound cliché but that is the eternal truth. A lot of aspirants take this subject and lose interest after some time. They cover the syllabus, understand the subject, do writing practice too; but here is a catch.
Understanding a subject and expressing it on paper showing that you have understood it are two entirely different ball games. This is where most of the candidates miss it.
For e.g. you might study Chester Bernard’s ideas and feel confident about your grasp. But if you answer a twisted question on Bernard, you will notice that your writing suffers from incoherence, looks abstract and lacks a logical flow. This gives a bad impression to the examiner and you will be awarded low marks despite your intuitive understanding of the topic.
Public Administration is not rocket science. It is very easy to understand. But, to understand it in a way so that you can express it beautifully on paper requires you to spend considerable time with the subject. You will need to read the same book 5-6 times and until you internalize the entire vocabulary of Public Administration, the job is not done. You will need to understand the subject both intuitively and logically.
To do the above, you really need a strong interest in the subject. Otherwise, reading becomes a ritual and ritualistic reading leads nowhere.
While falling in love with Public Administration might sound outlandish, nothing less works.
Strategy for Paper-1
For clear concepts, you need to refer books that deal with the subject in the simplest manner possible. Avoid poorly edited books or coaching material that may seem to cover the entire syllabus because they will not add much to your conceptual clarity.
Before referring any book, go through previous year papers of 20 years for that topic to become acquainted with the demand of the subject.
  1. Introduction: Read it from Sharma and Sadana or S Polianaidu. Supplement your reading with Mohit Bhattacharya. It will enrich your perspective. Almost all the pages will be important. We see little possibility of converting them into short notes. But you should jot down key ideas and concepts after second reading. Do not make notes right after first reading as you will not have a broader outlook of the subject and you may write everything in your notes.
  2. Administrative Thought: One and only Prasad and Prasad should be referred for this. Since questions will inter-link thinkers, try relating the theory of one thinker to that of other. Also read the background of the thinker. You can always correlate his theories with his background for e.g. Max weber ideas on bureaucracy were also a product of him being under the German authoritative system of the 1920s.
  3. Underline important lines/keywords like Mental Revolution, Zone of Indifference etc. Do try to remember some lines of these thinkers verbatim. It adds value to your answers in exam. Also, learn to apply these theories in real life administrative situations. UPSC has been asking case studies on the same. For e.g. you can relate Mcgregor’s theories to the present condition of the lower bureaucracy in India.
  4. Administrative Behaviour: Sharma and Sadana covers it pretty exhaustively. For motivation theories of Herzberg, Maslow etc, you can also refer to Prasad and Prasad. There is immense scope of making short notes here. The topics are also very easy to understand.  
  5. Organisations: Refer Sharma and Sadana for all topics except PPP. For PPP refer Fadia and Fadia. Please do not refer Fadia for other topics because this book, in my view, is poorly edited; very repetitive; lacks coherence and clarity. There is a lot of scope for relating this part to the Indian administration (paper-2). Quote examples and facts from the Indian context in answers. You need not necessarily quote international examples.
  6. Accountability and control; 6. Administrative Law: For both of them refer Sharma and Sadana. For dynamic topics like Civil Society, Right to Information, Citizen Charters keep an eye on international and national developments. Quote them heavily in your answers. Use small case studies if possible.
  7. Comparative Public Administration; 7. Development Dynamics: Ramesh K Arora – CPA is a brilliant book. It is a small book and covers the topic exhaustively. You can be assured of answering even the most twisted questions on CPA. For those who don’t have Arora, refer S. Polianaidu. Even though he covers CPA in a fragmented manner, it covers the topic thoroughly. Development administration is covered better in Polianaidu.
  8. Try to use cross-cultural examples heavily in answers. For e.g. Pakistan is an unbalanced polity with military at the helm of affairs in major policy matters; but India is a balanced polity where all organs of the government get their due share in policy making.
  1. Personnel Administration: Sharma and Sadana should be referred. And as Prince Dhawan (AIR-3, CSE 2011) rightly pointed out this topic should be covered alongwith Civil Services of Paper-2.
  2. Public Policy: IGNOU BA and MA Public Policy cover it thoroughly. There will be various modules that cover the same topic in BA and MA modules. So read it selectively. You can analyse present Indian policy decisions with respect to the various models given here.
  3. Techniques of Administrative Improvement: There is no single good source. Mohit Bhattacharya covers in a scanty manner, nevertheless go through it once. You will need to rely on the internet mostly. Questions from these topics do not carry much weightage.
  4. Financial Administration: Combine this with Financial Management from Paper-2. Both can be covered from Sharma and Sadana and current events in India. A lot of questions are being asked from this area. Prepare it well. Try making consolidated notes of both theoretical financial administration and Indian financial management.
After reading all these books once, go through Mohit Bhattacharya which is often called as the “Gita” of Public Administration. After finishing this book, you will begin to see the entire subject much more clearly and seamlessly connected. A lot of questions come directly from this book. Also, this covers the “new horizons” of Public Administration like Network Governance; Feminism in Administration etc. which may not be found in other traditionally rooted books.
Now, go through previous year papers again. Try answering questions. If you cannot, you will need a few more readings.
Start making notes from all these books in the second or third reading. Revise your notes as frequently as possible and as many times as possible. Understand the subject in and out. When you write, this understanding should reflect on paper.
Strategy for Paper-2
We need not pinpoint different books for different topics here because you only need to refer three sources:
1. Indian Administration by Rajni Goyal and Ramesh Arora – entire book. Making notes is not very useful as a large part of the syllabus coincides with Indian Polity of GS-II. The book covers almost all topics exhaustively
2. Second ARC reports cover the rest of the issues. These are very high quality reports. Its recommendations should be used heavily in your Paper-2 answers. Also try to make short notes. Reports that should be referred are:
  • Personnel Administration
  • State and District Administration
  • Public Order
  • Disaster Management
  • Local Government
  • Ethics in Governance (Selectively)
    3.  Other topics are mostly dynamic. Newspapers are the best source. The Hindu, Indian Express and Livemint editorials frequently comment on administrative matters. Also note down any new policies, plans, committees etc. Make issue-wise notes. Questions from current issues have a very high weightage. Do not ignore these at any cost. You will also need to quote facts/examples/ideas from the editorials quite often in your answers.
You need not refer to IJPA journals. Even if you refer them where will you use the content in your answers? IJPA journals are PhD plus stuff. You only need a graduate plus level of understanding here.
Answer Writing
There are no separate strategies for Paper-1 and Paper-2. In both the cases you will need to give Indian examples, write logically, and present arguments from both sides. Once you internalize the subject, answer writing will not require a lot of effort. But, if you have read the subject only once, you may face problems in presenting your viewpoint logically. Keep the following in mind while writing answers.
Do not write general answers as you write in GS. They should be ‘Pub Ad’ answers. Use administrative terminology from the subject; quote thinkers and theories in your answer; and explore the issue on administrative lines.
For e.g. if a question on reducing the size of Indian Cabinet comes, you should be able to write its positive and negative implications based on delegation and decentralization; efficiency; organizational behaviour; informal grouping angle etc.
In paper-1 especially, try relating your answer with the basic theories, contemporary and cross-cultural practices. For e.g. in comparing the strength of executive accountability to legislature, compare that of US and India. You can also quote that in 2013 US Congress stopped fund flow to the executive. Such financial control is difficult to achieve in India given the dominance of executive in the Indian Parliament.
Also, try to cover almost any answer right from its basics. For e.g. if a question on comparison between Bernard and Simon comes, you should first clearly state what both thinkers claim, and then explore similarities or dissimilarities.
Same works for Paper-2 as well. For e.g. when writing an answer on local government, start from the basic provisions in the constitution relating to that question. When analysis of a policy or judgment is asked, first give a small introduction of the policy.
Try to quote committees like Punchhi, 2nd ARC, Sarkaria in your answers wherever possible. For e.g. there was a question in 2014on the possibility of giving regulatory powers to the PRIs apart from developmental functions. You can directly quote both 2nd ARC and Padmanabhaiah committee that recommend giving local policing powers to PRIs. The answer looks richer this way making a good impression on the examiner.
You can write either in paragraphs or points. A mixture of points and paragraphs written under sub-headings give a structure to your answer, and make the job of the examiner easier.
Finally, do not write in a complicated language. Use Simple English in an administrative style with short sentences covering relevant examples after every one-two paragraphs.
UPSC is not looking for scholars of Public Administration. You should only be able to state the concept clearly on paper and take a fair stand on issues after giving appropriate arguments and evidence from both sides. That is enough.
“You have to learn the rules of the game. And then you have to play better than anyone else.” – Albert Einstein
Please just make sure you are doing it right. Wish you all the best!

Goods and Services Tax Council Meeting | GST

A single common “Goods and Services Tax (GST)” was proposed and given a go-ahead in 1999 during a meeting between the Prime Minister Atal Bihari Vajpayee and his economic advisory panel. Mr Vajpayee set up a committee headed by the then finance minister of West Bengal, Asim Dasgupta to design a GST model. Later, Finance Minister P Chidambaram in February 2006 continued work on the same.  It finally was implemented on July 1st, 2017 to be a comprehensive, destination-based indirect tax that has replaced various indirect taxes that were implemented by the State and Centre such as VAT, excise duty, and others. The government of India also formed a GST Council to govern the rules the Goods and Services Tax. 

32nd GST Council meet held on 10th January 2019

32nd GST Council meetingwas held at New Delhi and chaired by Shri Arun Jaitley. Announcements made was a big relief to MSMEs and small traders.
The key takeaways of the 32nd GST Council meeting are as follows:
  • Increase in GST registration limit from Rs 20 lakhs up to Rs 40 lakhs for suppliers of goods.
  • Changes in the existing composition scheme made by increasing the turnover limit to join the scheme up to Rs 1.5 crores, tax payments to be made quarterly and returns to be filed annually starting 1st April 2019.
  • New composition scheme is introduced for service providers and those who supply services along with goods; the Turnover limit set is Rs 50 lakhs and the Tax rate is fixed at 6%.
  • No rate cuts were announced this time. GoMs were formed to study taxation of under-construction properties & lotteries.
  • Calamity cess up to 1% for up to 2 years will be charged for supplies made within the State of Kerala.
Why do we need a GST Council?
The GST council is the key decision-making body that will take all important decisions regarding the GST. The GST Council dictates tax rate, tax exemption, the due date of forms, tax laws, and tax deadlines, keeping in mind special rates and provisions for some states. The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.
How is the GST Council structured?
The Goods and Services Tax (GST) is governed by the GST Council. Article 279 (1) of the amended Indian Constitution states that the GST Council has to be constituted by the President within 60 days of the commencement of the Article 279A.
According to the article, GST Council will be a joint forum for the Centre and the States. It consists of the following members:
  • The Union Finance Minister, Arun Jaitley will be the Chairperson
  • As a member, the Union Minister of State will be in charge of Revenue of Finance
  • The Minister in charge of finance or taxation or any other Minister nominated by each State government, as members.
GST Council recommendations
Article 279A (4) specifies that the Council will make recommendations to the Union and the States on the important issues related to GST, such as, the goods and services will be subject or exempted from the Goods and Services Tax.
They lay down GST laws, principles that govern the following:
  • Place of Supply
  • Threshold limits
  • GST rates on goods and services
  • Special rates for raising additional resources during a natural calamity or disaster
  • Special GST rates for certain States
Features of GST Council that you must know:
  • GST Council office is set up in New Delhi
  • Revenue Secretary is appointed as the Ex-officio Secretary to the GST Council
  • Central Board of Excise and Customs (CBEC) is included as the chairperson as a permanent invitee (non-voting) to all proceedings of the GST Council
  • Create a post for Additional Secretary to the GST Council
  • Create four posts of commissioner in the GST Council Secretariat (This is at the level of Joint Secretary)
  • GST Council Secretariat will have officers taken on deputation from both the Central and State Governments
The cabinet also provides funds for meetings the expenses (recurring and nonrecurring) of the GST Council Secretariat. This cost is completely borne by the Central government.
GST Council meetings
The GST Council meets to discuss and lay GST laws that will benefit dealers across the nation. The outcome of the previous latest GST Council meet was that the Council decided to implement GST provisions on e-way bills that requires goods of more than Rs.50,000 in value to be registered online before they can be moved. They have also extended the deadline to file GSTR-1.
The Council will also set up anti-profiteering screening committees that will make the National Anti-Profiteering Authority stronger under the GST law.
Other than laying GST laws, the GST Council have taken decisions as such:
  • The threshold limit for exemption of GST would be set at Rs.20 lakh per year for all States (except for special category states)
  • The threshold for special States is set at Rs 10 lakh per year
  • For composition scheme is set at Rs. 75 lakh for all States (except for the North East States and Himachal Pradesh – Set at Rs 50 lakh per year)
  • Ice cream, tobacco, pan masala, and other edible ice manufacturers shall not be eligible for composition levy (except for restaurant services)
GST Council also looks into drafting GST rules on registration, payment, valuation, input tax credit, composition, return, refund and invoice, and transitional provisions, among other things.

GOODS AND SERVICE TAX

1. What is GST?

GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensivemulti-stagedestination-based tax that is levied on every value addition.
In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India.
GST is one indirect tax for the entire country.
So, before Goods and Service Tax, the pattern of tax levy was as follows:
GST
Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. Inter-state sales are chargeable to Integrated GST.
Now let us try to understand the definition of Goods and Service Tax – “GST is a comprehensive, multi-stagedestination-based tax that is levied on every value addition.”

Multi-stage

There are multiple change-of-hands an item goes through along its supply chain: from manufacture to final sale to the consumer.
Let us consider the following case:
  • Purchase of raw materials
  • Production or manufacture
  • Warehousing of finished goods
  • Sale to wholesaler
  • Sale of the product to the retailer
  • Sale to the end consumer

GST
Goods and Services Tax is levied on each of these stages which makes it a multi-stage tax.

Value Addition

GST
The manufacturer who makes biscuits buys flour, sugar and other material. The value of the inputs increases when the sugar and flour are mixed and baked into biscuits.
The manufacturer then sells the biscuits to the warehousing agent who packs large quantities of biscuits and labels it. That is another addition of value after which the warehouse sells it to the retailer.
The retailer packages the biscuits in smaller quantities and invests in the marketing of the biscuits thus increasing its value.
GST is levied on these value additions i.e. the monetary value added at each stage to achieve the final sale to the end customer.

Destination-Based

Consider goods manufactured in Maharashtra and are sold to the final consumer in Karnataka. Since Goods & Service Tax is levied at the point of consumption. So, the entire tax revenue will go to Karnataka and not Maharashtra.

2. Journey of GST in India

The GST journey began in the year 2000 when a committee was set up to draft law. It took 17 years from then for the Law to evolve. In 2017 the GST Bill was passed in the Lok Sabha and Rajya Sabha. On 1st July 2017 the GST Law came into force.

History of GST

3. Advantages Of GST

GST has mainly removed the Cascading effect on the sale of goods and services. Removal of cascading effect has impacted the cost of goods. Since the GST regime eliminates the tax on tax, the cost of goods decreases.
GST is also mainly technologically driven. All activities like registration, return filing, application for refund and response to notice needs to be done online on the GST Portal; this accelerates the processes.GST Advantages

4. What are the components of GST?

There are 3 taxes applicable under this system: CGST, SGST & IGST.
  • CGST: Collected by the Central Government on an intra-state sale (Eg: transaction happening within Maharashtra)
  • SGST: Collected by the State Government on an intra-state sale (Eg: transaction happening within Maharashtra)
  • IGST: Collected by the Central Government for inter-state sale (Eg: Maharashtra to Tamil Nadu)
In most cases, the tax structure under the new regime will be as follows:
TransactionNew RegimeOld Regime
Sale within the StateCGST + SGSTVAT + Central Excise/Service taxRevenue will be shared equally between the Centre and the State
Sale to another StateIGSTCentral Sales Tax + Excise/Service TaxThere will only be one type of tax (central) in case of inter-state sales. The Centre will then share the IGST revenue based on the destination of goods.

Illustration: 

  • Let us assume that a dealer in Gujarat had sold the goods to a dealer in Punjab worth Rs. 50,000. The tax rate is 18% comprising of only IGST.
In such case, the dealer has to charge Rs. 9,000 as IGST. This revenue will go to the Central Government.
  • The same dealer sells goods to a consumer in Gujarat worth Rs. 50,000. The GST rate on the good is 12%. This rate comprises of  CGST at 6% and SGST at 6%.
The dealer has to collect Rs. 6,000 as Goods and Service Tax. Rs. 3,000 will go to the Central Government and Rs. 3,000 will go to the Gujarat government as the sale is within the state.

5. Tax Laws before GST

In the earlier indirect tax regime, there were many indirect taxes levied by both state and centre. States mainly collected taxes in the form of Value Added Tax (VAT). Every state had a different set of rules and regulations.
Interstate sale of goods was taxed by the Centre. CST (Central State Tax) was applicable in case of interstate sale of goods.  Other than above there were many indirect taxes like entertainment tax, octroi and local tax that was levied by state and centre.
This led to a lot of overlapping of taxes levied by both state and centre.
For example, when goods were manufactured and sold, excise duty was charged by the centre. Over and above Excise Duty, VAT was also charged by the State. This lead to a tax on tax also known as the cascading effect of taxes.
The following is the list of indirect taxes in the pre-GST regime:
  • Central Excise Duty
  • Duties of Excise
  • Additional Duties of Excise
  • Additional Duties of Customs
  • Special Additional Duty of Customs
  • Cess
  • State VAT
  • Central Sales Tax
  • Purchase Tax
  • Luxury Tax
  • Entertainment Tax
  • Entry Tax
  • Taxes on advertisements
  • Taxes on lotteries, betting, and gambling
CGST, SGST, and IGST has replaced all the above taxes.
However, the chargeability of CST for Inter-state purchase at a concessional rate of 2%, by issue and utilisation of c-Form is still prevalent for certain Non-GST goods such as:
(i) Petroleum crude;
(ii) High-speed diesel;
(iii) Motor spirit (commonly known as petrol);
(iv) Natural gas;
(v) Aviation turbine fuel; and
(vi) Alcoholic liquor for human consumption.
in respect of following transactions only:
  • Resale
  • Use in manufacturing or processing
  • Use in the telecommunication network or in mining or in the generation or distribution of electricity or any other power

6. What changes has GST brought in?

In the pre-GST regime, every purchaser including the final consumer paid tax on tax. This tax on tax is called Cascading Effect of Taxes.
GST has removed this cascading effect as the tax is calculated only on the value-addition at each stage of the transfer of ownership. Understand what the cascading effect is and how GST helps by watching this simple video:
This indirect tax system under GST has improved the collection of taxes as well as boosted the development of Indian economy by removing the indirect tax barriers between states and integrating the country through a uniform tax rate.

Illustration:

Based on the above example of biscuit manufacturer along with some numbers, let’s see what happens to the cost of goods and the taxes in the earlier and GST regimes.
Tax calculations in earlier regime:
ActionCost10% TaxTotal
Manufacturer1,0001001,100
Warehouse adds a label and repacks @ 3001,4001401,540
Retailer advertises @ 5002,0402042,244
Total1,8004442,244
Along the way, the tax liability was passed on at every stage of the transaction and the final liability comes to rest with the customer. This is called the Cascading Effect of Taxes where a tax is paid on tax and the value of the item keeps increasing every time this happens.
Tax calculations in current regime: 
ActionCost10% TaxActual LiabilityTotal
Manufacturer1,0001001001,100
Warehouse adds label and repacks @ 3001,300130301,430
Retailer advertises @ 5001,800180501,980
Total1,8001801,980
In the case of Goods and Services Tax, there is a way to claim credit for tax paid in acquiring input. What happens in this case is, the individual who has paid a tax already can claim credit for this tax when he submits his taxes.
In the end, every time an individual is able to claim the input tax credit, the sale price is reduced and the cost price for the buyer is reduced because of lower tax liability. The final value of the biscuits is therefore reduced from Rs. 2,244 to Rs. 1,980, thus reducing the tax burden on the final customer.
GST regime also brought a centralised system of waybills by the introduction of “E-way bills”. This system was launched on 1st April 2018 for Inter-state movement of goods and on 15th April 2018 for intra-state movement of goods in a staggered manner. Under the e-way bill system, manufacturers, traders & transporters are now able to generate e-way bills for the goods transported from the place of its origin to its destination on a common portal with ease. Tax authorities are also benefitted as this system has reduced time at check -posts and help reduce tax .