Reading Comprehension for SBI PO Prelims: 5th July 2018

Since its midnight launch on July 1 last year, India’s Goods and Services Tax regime has evolved significantly. There have been serious implementation issues, but also the administrative will and flexibility to address most of these, with the Centre and States working together in the GST Council. After its initial days were marred by stuttering IT systems, the deadline for filing returns was pushed forward till most taxpayers got a hang of the system and the GST Network could augment its capacity. Industry had anxieties about the multiple tax rates, ranging from zero to 28%, with a cess on demerit goods. But gradually, the number of goods under the 28% bracket has been brought down to 50 from around 200. A unique component envisaged in India’s GST regime, matching of invoices for granting tax credits, has been kept on hold for fear of adding to taxpayers’ transition pains. 

Despite its glitches and snarls, the new tax has taken firm root and is altering the economic landscape positively. The strongest sign of this is the entry of over 4.5 million entities in the country’s tax net, many of which would have so far been part of the cash-driven, informal economy. This expansion of the tax net will also help increase direct tax collections. At Sunday’s GST Day celebrations, Prime Minister Narendra Modi ruled out a single tax rate but hinted at lower rates for more items. He was reacting to criticism about the flawed implementation of the One Nation, One Tax concept. Rhetoric aside, there is a clear buoyancy in revenue after a wobbly initial trend. The government was eyeing a little over ₹90,000 crore a month to make up for the revenues earned under the earlier regime and to compensate States for any losses due to the GST. Finance Minister Piyush Goyal is confident that the average monthly collections this year could touch ₹110,000 crore. This surge must allay the fiscal concerns of the Centre and the States, and nudge policy-makers towards further rationalising the GST structure.

If not a single rate, there is certainly room for collapsing at least two of the current rates. It is also imperative that rates not be tinkered with too often and pricing disputes not be a default option under anti-profiteering norms for industry. If cement, as a critical infrastructure input, must be taxed lower than 28%, then decide a rate and stick to it. In its second year, the GST Council must pursue a time-bound approach to execute plans already announced to ease taxpayers’ woes, such as an e-wallet for exporters and a simpler return form. Besides, there must be a road map to bring excluded products — petroleum, real estate, electricity, alcohol — into the GST net. This reform still has miles to go, and the government must stare down the temptation to take populist steps ahead of general elections.

Q1. As per the writer, what reforms must be undertaken by the government regarding GST?

(a) There must be a road map to bring excluded products — petroleum, real estate, electricity, alcohol — into the GST net.

(b) The GST Council must pursue a time-bound approach to execute plans already announced to ease taxpayers’ woes.

(c) Increasing formalisation of the economy and linkage between direct and indirect tax return filings.  

(d) Both (a) and (b) 

(e) None of these

Q2. Which of the following statements can be inferred from the passage above?

(a) It is impossible to establish a one-to-one relationship between a tax and macro-economic fundamentals like inflation 

(b) The government could move certain items currently attracting 28 per cent GST to the 18 per cent group 

(c) GST did not just mean a difference in the tax rate but changes in the entire ecosystem of the IT setup, supply chain, procurements, billing patterns and exports, 

(d) Pre-decided plans must be pursued by a time-bound approach by the GST Council. 

(e) None of the Above

Q3. As per the passage, which of the following is a desirable future component of GST Tax regime that has not been implemented yet?

(a) Implementing multiple slabs tax structure regime. 

(b) Improvement in CGST and SGST collections.

(c) Intra-state e-way bill implementation.

(d) Matching of statements of various goods and services for granting tax credits. 

(e) None of the Above

Q4. Which of the following is the most suitable title for the passage above?

(a) Current Rates under GST

(b) The GST Structure

(c) One year after: the GST anniversary 

(d) Launch of GST

(e) None of the Above

Q5. Which of the following statements is/are true in context with the passage above?

(a) The number of goods under the 28% bracket has been brought down to 50 from around 200.

(b) GST implementation was impaired at the initial stage due to irregular progress by IT systems. 

(c) Over 4.5 million entities have entered the GST Tax Regime.

(d) None is correct. 

(e) All are correct 

Q6. Choose the word which is MOST SMILAR to the word given in passage

SURGE

(a) Decline

(b) Implement

(c) Queer

(d) Escalate 

(e) Embed

Q7. Choose the word which is OPPOSITE to the word given in passage

MARRED

(a) Blight

(b) Bruise

(c) Revamped 

(d) Blemish

(e) Detract

Q8. Choose the word which is MOST SMILAR to the word given in passage

GLITCHES

(a) Prolific

(b) Malfunction

(c) Perfection

(d) Magnificence

(e) Amelioration

Q9. Choose the word which is OPPOSITE to the word given in passage

SNARLS

(a) Perplex

(b) Embroil

(c) Despicable

(d) Simplify

(e) Abhorrent

Direction (10-15) In the passage given below there are blanks which are to be filled with the options given below. Find out the appropriate word in each case which can most suitably complete the sentence without altering the meaning of the statement. 

Von Nuemann and Morgenstern assume a decision framework in which all options are thoroughly considered, each option being independent of the others, with a numerical value derived for the utility of each possible outcome (these outcomes reflecting, in turn, all possible combinations of choices). The decision is then made to maximize the expected utility.

………(10)……… such a model reflects major simplifications of the way divisions are made in the real world. Humans are not able to process information as quickly and effectively as the model assumes; they tend not to think ………(11)……… as easily as the model calls for; they often deal with a particular option without really assessing its ………(12)……… and when they do assess alternatives, they may be extremely nebulous about their criteria of evaluation.

Q10.

(a) Regrettably

(b)Firstly

(c)Obviously

(d)Apparently

(e) None of the Above

Q11. 

(a) quantitatively

(b) systematically

(c) scientifically

(d) analytically

(e) None of the Above

Q12. 

(a) implications

(b) disadvantages

(c) utility

(d) alternatives

(e) None of the Above

In a large company, ………(13)……… people is about as common as using a gun or a switch-blade to ………(14)……… an argument. As a result, most managers have little or no experience of firing people, and they find it emotionally traumatic; as result, they often delay the act interminably, much as an unhappy spouse will prolong a bad marriage. And when the firing is done, it’s often done clumsily, with far worse side effects than are necessary.

Do the world-class software organizations have a different way of firing people? No, but they do the deed swiftly, humanely, and professionally.

The key point here is to view the fired employee as a ‘failed product’ and to ask how the process ………(15)……… such a phenomenon in the first place.

Q13. 

(a) dismissing

(b) punishing

(c) firing

(d) admonishing

(e) None of the Above

Q14. 

(a) resolve

(b) thwart

(c) defeat

(d) close

(e) None of the Above

Q15. 

(a) derived

(b) engineered 

(c) produced

(d) allowed

(e) None of the Above