Question Details

Read the following passage carefully and answer the questions that follow. One of the central motifs of the past decade of governance under Indian Prime Minister has been the embrace of policy measures that seek to apply uniform solutions to disparate policy dilemmas facing the country. These measures, often termed One Nation policies, are motivated by a desire to replace the existing patchwork of state-specific policies, regulations, and regimes with measures that are identical across the length and breadth of India. There are numerous examples of such One Nation policies being propagated and, in several cases, implemented in the eleven years since this Government came to power. For instance, in 2016, Parliament passed a series of constitutional amendments to introduce a new Goods and Services Tax (GST), which introduced a unified value-added tax in place of state-specific levies. This reform, known informally as One Nation, One Tax, had been debated and discussed for nearly two decades and was widely touted as an important precursor to forging a common market across India’s twenty-eight states. In a similar vein, the government rolled out a new initiative to allow Indian citizens to take advantage of subsidized food rations irrespective of their state of residence.


This scheme, commonly termed One Nation, One Ration Card, was intended to increase access to welfare benefits, especially for the millions of internal migrants in India without a fixed place of residence. Earlier this year, the government announced the launch of a new online portal that will provide students, faculty, and researchers across the country’s public higher education institutions with open access to international scholarly journals and articles under a scheme it has dubbed One Nation, One Subscription. Most notably, the government recently signalled its intention to pursue a monumental One Nation policy that has been long discussed but only recently outlined in detail. This measure, known as One Nation, One Election, would do away with India’s current system of staggered elections for state and national assemblies, replacing it with a framework of simultaneous elections. The proposal, which has featured in many of PM’s speeches in the past, was advanced by a high-level committee (HLC) established by the government in 2023. (351 words) [Excerpts from Does ”One Nation, One Election” Make Sense for India? by Milan Vaishnav, Caroline Mallory, and Annabel Richter Published on July 28, 2025]


As per the new GST reforms introduced in September 2025, the structure of new GST rates are as follows

Options

A

5%, 12%, 18% and 28%

B

5%, 12% and 18%

C

5%, 12% and 40%

D

5%, 18% and 40%

Show Answer

Correct Answer :

Option A

5%, 12%, 18% and 28%

Solution :

The correct option is 5%, 12%, 18% and 28%.


Step-by-Step Explanation:


1. Context of GST Structure:
As discussed in the passage, the Goods and Services Tax (GST) was introduced to unify state-specific levies under the "One Nation, One Tax" framework across India.


2. Four-Tier Rate Structure:
The GST system categorizes goods and services under four primary standard tax slabs designed to balance revenue requirements and essential living costs:
5% Rate: Applied to essential items, basic food items, and daily necessities.
12% Rate: Applied to standard processed items, computers, and medical items.
18% Rate: Applied to most industrial goods, capital goods, and various services.
28% Rate: Applied to luxury products and demerit goods (e.g., automobiles, aerated drinks, tobacco products).


3. Conclusion:
Thus, the primary structure of GST rates is 5%, 12%, 18% and 28%.

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