5 September 2025 Current Affairs (With PDF)

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GST Council Approves Next-Generation GST Reforms

Why in News

The 56th GST Council meeting has recommended major reforms to rationalize tax rates, ease the burden on citizens, and streamline the Goods and Services Tax (GST) framework. The new structure will take effect from 22nd September 2025.

Key Reforms

1. Rationalized Tax Structure

• Two-Rate System: GST restructured into:
  - 5% (Merit Rate)
  - 18% (Standard Rate)
• 12% and 28% slabs scrapped.

2. Relief for Common Citizens

• Zero GST: Milk, paneer, chapati, paratha.
• 5% GST: Toiletries, medicines, bicycles, farm tools.
• Consumer Goods Relief: Small cars, TVs, ACs, and home appliances shifted from 28% to 18%.

3. Insurance & Health

• Exemption: All life insurance and health insurance policies.

4. Higher Tax on Sin & Luxury Goods

• 40% GST on tobacco, luxury cars, and aerated drinks.

Sectoral Support

• Agriculture & Fertilizer Sector: Reduced GST on agri-machinery and fertilizers.
• Renewable Energy Devices: Lower GST to promote clean energy.
• Automobile Sector: Tax rationalization to support industry.
• Manmade Fiber/Yarn: Correction of inverted duty structure.

Institutional Reforms

• Goods and Services Tax Appellate Tribunal to be operationalized for speedy resolution of disputes.

About GST Council

• Constitutional Body under Article 279A, created via the 101st Constitutional Amendment Act, 2016.
• Composition: President constitutes the Council; Union Finance Minister serves as Chairperson.
• Mandate: Recommend GST rates, resolve policy issues, and harmonize taxation between Centre and States.

Environment Audit Rules, 2025 Notified

Why in News

Ministry of Environment, Forest and Climate Change (MoEFCC) has notified the Environment Audit Rules, 2025, creating a nationwide framework for environmental auditing to strengthen compliance monitoring and promote ease of doing business.

Key Features

1. Institutional Structure:

(a) Environment Audit Designate Agency (EADA):

• Functions: Certification, registration, oversight, and training of environmental auditors.

(b) Registered Environment Auditors (REAs):

• Only REAs can conduct audits.
• Certification based on qualification & experience scrutiny, or examination.
• REAs assigned through random allocation to ensure impartiality.

2. Responsibilities of REAs:

• Conduct sampling and analysis.
• Calculate environmental compensation.
• Verify compliance under Green Credit Rules.
• Carry out audits under waste management rules and other environmental legislations.

3. Two-Tiered Audit System:

• Tier-1: Traditional regulator-based review (CPCB, SPCBs, MoEFCC regional offices).
• Tier-2: Independent environment auditor-based mechanism.

4. Oversight & Implementation:

• MoEFCC: Issues guidelines and supervises implementation.
• CPCB/SPCBs/Regional Offices: Continue inspections, verification, and assist in implementation.
• Steering Committee: Led by MoEFCC Additional Secretary to monitor progress and suggest reforms.

Significance

• Strengthens environmental governance through structured audits.
• Enhances transparency, impartiality, and accountability in compliance monitoring.
• Balances environmental protection with ease of doing business.

Cabinet Approves Incentive Scheme to Promote Critical Mineral Recycling

Why in News

The Union Cabinet has approved an Incentive Scheme for Critical Mineral Recycling under the National Critical Mineral Mission (NCMM), with a financial outlay of ₹1,500 crore.

Key Features of the Scheme

1. Tenure:

• Six years (FY 2025-26 to FY 2030-31).

2. Objective:

• Ensure supply chain sustainability of critical minerals through recycling, given the long gestation for mining operations.

3. Eligible Feedstock:

• E-waste,
• Lithium-ion battery (LIB) scrap,
• Catalytic converters from end-of-life vehicles,
• Other critical mineral-bearing scraps.

4. Beneficiaries:

• Large recyclers, small/new recyclers, and start-ups (1/3rd of funds reserved for small entities).

Incentive Mechanism

1. Capex Subsidy:

• 20% on plant and machinery for timely production.

2. Opex Subsidy on Incremental Sales:

• 40% in the 2nd year (FY 2026-27),
• 60% in the 5th year (FY 2030-31).

3. Incentive Ceilings:

• ₹50 crore for large entities,
• ₹25 crore for small entities.

National Critical Mineral Mission (NCMM)

• Launched: FY 2024-25; duration till FY 2030-31.
• Mandate: Secure critical mineral supply chains from domestic and foreign sources.
• Scope: Covers the entire value chain – exploration, mining, beneficiation, processing, and recovery from end-of-life products.

200th Birth Anniversary of Dadabhai Naoroji

Why in News

The nation commemorates the 200th birth anniversary (1825–1917) of Dadabhai Naoroji, revered as the “Grand Old Man of India” and the “Official Ambassador of India.”

About Dadabhai Naoroji

• Scholar, reformer, trader, nationalist leader, and parliamentarian.
• Founding member of the Indian National Congress (INC) and served as its President thrice (1886, 1893, 1906).
• First Indian elected as Member of British Parliament (1892) from Finsbury Central (Liberal Party).

Key Contributions

1. Social Reform

• Women’s Education: Founded Literary and Scientific Society (1848); established 6 girls’ schools by 1849.
• Reformist Thought: Founded Rast Goftar newspaper; co-founded Rahnumai Mazdayasan Sabha (1851) for Parsi social reforms.

2. Economic Thought

• Drain of Wealth Theory: Exposed how British policies drained India’s wealth via taxation, salaries, pensions, and remittances.
• Literary Works:
  - Poverty of India (1876)
  - Poverty and Un-British Rule in India (1901)
• Global Advocacy: Raised Indian issues at platforms like East India Association (1866).

3. Political Role

• Moderate Leader: Believed in petitions, prayers, and constitutional methods.
• Organizations: Founded London Indian Society (1865) and East India Association (1866).
• Congress Leadership: As INC President (1906), formally declared Swaraj (self-government) as the political goal.
• Mentorship: Guided leaders like Tilak, Gokhale, and Gandhi.

Nalanda University

Why in News

Bhutan’s Prime Minister paid a visit to Nalanda University (Bihar).

Ancient Nalanda University

• Founded: 5th century CE by Emperor Kumaragupta of the Gupta dynasty.
• Location: Present-day Rajgir, Bihar.
• Nature: First residential university in the world with dormitories and hostels.
• World Heritage Status: Recognized as a UNESCO World Heritage Site.

Patronage

• King Harshavardhana of Kannauj (7th century CE).
• Pala rulers (8th–12th century CE).

Global Reach

• Scholars came from China, Korea, Japan, Tibet, Mongolia, Sri Lanka, and Southeast Asia.
• Xuanzang (Hsuan Tsang), the Chinese scholar, documented Nalanda’s architecture, environment, and intellectual traditions.

Decline of Nalanda

• 9th century onward: Decline due to Tantric developments in Buddhism under the Pala Empire.
• Final destruction (~1200 CE): By Bakhtiyar Khilji, leading to the burning of libraries and massacre of monks.

Operation Black Forest

Why in News

‘Operation Black Forest’ is the biggest anti-Naxal operation ever conducted on Karregutta hill along the Chhattisgarh–Telangana border.

About Operation Black Forest

• Objective: To dismantle strongholds of Left-Wing Extremism (LWE) in forested and hilly terrains.
• Location: Karregutta hill and adjoining dense forest areas, a long-standing Naxal stronghold.
• Significance: Marks a major coordinated offensive involving security forces of multiple states.

Other Major Anti-Naxal Operations

1. Mission Sankalp

• Lauched on Karregutta and adjoining hills (Chhattisgarh–Telangana border).
• Focused on dominating Naxal-affected forest terrain and regaining civilian access.

2. Operation Green Hunt (2009)

• A multi-state coordinated offensive against Maoist insurgents.
• Conducted across five states: West Bengal, Jharkhand, Bihar, Odisha, and Chhattisgarh.
• Objective: To weaken Maoist influence through sustained security presence.

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