Daily Vocab Capsule 4th July 2017

Daily Vocab Capsule 4th July 2017

Daily English Vocab

On a Wing and a Prayer

Economic unification of states & GST Council make the tax rollout an epochal (नवयुगीन/ महत्त्वपूर्ण) event.

The hype over the much-awaited launch of the goods and services tax (GST) at a special midnight session in the central hall of Parliament house last Saturday might seem a bit excessive. But not if you consider how long it has taken us to get there, and how tortuous the journey has been.

It has finally made us one economic entity with a single national market. India, in the words of an imaginative campaign run by the government, has been transformed from being a political union to a political and economic union in the true sense.

However, given the challenges that lie ahead, it would be naive (अनुभवहीन) to imagine the ideal of a single national market will be realised overnight. There are glitches (खामियाँ) aplenty that will have to be ironed out (समस्या निराकरण). It will be a while before the jungle of indirect tax laws (with all its associated ills, including corruption) that impeded (अवरूद्ध) competition and ease of doing business is replaced by the seamless operation envisaged under GST. But we are on our way to getting there.

Even better, we finally have on the ground the working semblance (झलक/आभास) of a blueprint for true fiscal federalism. Something that was, perhaps, not envisaged even by the framers of the Constitution. The Indian Constitution has often been described as ‘federal in form, but unitary in spirit’. Though it is based on a division of powers between the Union and the states, the division of powers, especially taxation powers, was weighted in favour of the Union government.

This state of affairs might have been appropriate in a milieu (बीच) where we had only national parties, but not in a scenario where regional parties and regional aspirations have become increasingly important. Cooperative federalism is the only way forward in a country as diverse as ours. The beauty of GST is that its structure allows this diversity to get reflected in policy on the ground. 

Powerful Council

The structure of the GST Council, the powerful decision-making body on all things related to GST, is such that neither the Union nor state governments will be able to do anything unilaterally. On the contrary, with states collectively having two-thirds of the vote share and the Union, one third, even as all decisions are to be taken by three-fourth majority, the earlier skew (झुकाव) in taxation powers in favour of the Union is now history.

From a time when states were seen as subservient (अधीन/ सहायक) to the Centre, states today sit at the same high table as the Union government when it comes to GST. Indeed, the word ‘Centre’, with its subtle subtext of superiority vis-à-vis states, does not figure at all in the Constitution, which uses the more neutral ‘union’ to describe the national government. True, the council is only a recommendatory body. But for all practical purposes it will be the de facto agency that decides all matters relating to indirect taxes: rates, slabs, classification of goods and services, administration and dispute settlement.

For all the benefits that GST is expected to deliver -and there are innumerable -it is these two features, the economic unification of states and the institution of the GST Council, more than any other, that make the launch of GST a truly epochal event. But does that mean GST is some kind of a magic wand (छड़ी) that will change India overnight? Not at all. 

First, we will have to tone down our expectations. Accept that though there are many benefits, these will not be realised immediately and, in fact, will be realised only after we have overcome many challenges en route. 

Challenges

The two biggest challenges (ignoring innumerable procedural hassles (बाधाएँ), issues relating to transitional rules, refund procedure in case of inverted duty structure, e-way bill mechanism, anti-profiteering clause and so on) relate, first, to technology. The robustness of the IT backbone required to process an estimated 3.5 billion invoices every month. And, more importantly, the readiness and preparedness of small businesses, retailers and traders. The success of GST depends on how quickly businesses adapt to the digital taxation. Under GST, compliance (अनुपालन)procedures like registration, payments, refunds and returns can only be done through online portals. This is going to be a huge challenge in a country where there is a large number of small and medium enterprises, accounting for a significant share of the GDP.

The second big challenge is the short-term adverse fallout on economic activity as a result of teething troubles arising from the sheer complexity of the new regime and, more importantly, its impact on prices. If producers cut back on production for want of clarity on tax incidence or logistics problems, then we could see supply, and hence prices, being impacted. On paper, consumer price inflation should come down since food accounts for close to 50% share in the consumption basket and prices of most food items (except for more expensive branded items) should remain the same or fall. However, international experience suggests there could be a brief inflationary surge, in which case government could find itself on the back foot.

None of this, however, can take away from the sheer economic logic and, indeed, necessity for GST. Remember, nothing venture (कार्य/उद्यम),nothing win.

1. Epochal (Adjective): Forming or characterizing an epoch (नवयुगीन/ महत्त्वपूर्ण)

Synonyms: Cyclical, Occasional, Periodical, Rhythmic, Seasonal

Antonyms: Frequent, Permanent, Perpetual, Regular, Usual

Example: Because the film wasn’t epochal, it wasn’t nominated for any awards.

Related Words: Epoch (Noun): A particular period of time in history or a person's life

2. Glitches (Noun): Sudden, usually temporary malfunctions (खामियाँ)

Synonyms: Bug, Defect, Flaw, Setback, Malfunction, Snag

Antonyms: Advantage, Perfection, Strength

Example: A technical glitch caused a temporary shutdown.

3. Impede (Verb): Delay or prevent something by obstructing them (अवरूद्ध)

Synonyms: Block, Curb, Disrupt, Hamper, Restrain, Stymie

Antonyms: Advance, Assist, Expedite, Facilitate, Unlock

Example: What are the problems that impede our progress on the task?

Verb Forms: Impede, Impeded, Impeded

Related Words: Impediment (Noun): A hindrance or obstruction in doing something

4. Semblance (Noun): The outward appearance or apparent form of something (झलक/आभास)

Synonyms: Air, Bearing, Facade, Feeling, Likeness, Resemblance

Antonyms: Difference, Dissimilarity, Unlikeness

Example: Even though I was nervous during my presentation, I tried to project a semblance of calmness while speaking.

5. Skew (Noun): A bias towards one particular group or subject (झुकाव/झुका हुआ)

Synonyms: Bend, Bias, Contort, Slant, Sloped, Twist

Antonyms: Maintain, Strengthen

Example: Because we didn’t use a level when hanging it, the picture was skew on the wall.

Related Words: Skew (Adjective): Neither parallel nor at right angles to a specified or implied line

Skew (Verb): Suddenly change direction or position

6. Subservient (Adjective): Less important; subordinate (अधीन/ सहायक)

Synonyms: Cowering, Deferential, Inferior, Man, Submissive

Antonyms: Controlling, Dictatorial, Domineering, Overbearing

Example: While I do not mind following reasonable orders on occasion, I am far from subservient and will not do everything I am told.

Related Word: Subservience (Noun): The condition of being less important than something else

7. Wand (Noun):  A long, thin stick or rod (छड़ी)

Synonyms: Bar, Baton, Cane, Pole, Stick, Twig

Antonyms: Clearance, Unbar

Example: With them were found many reliefs in ivory, on tusks, wands and cylinders.

8. Hassles (Noun): Irritating inconveniences (बाधाएँ)

Synonyms: Clamour, Difficulty, Squabble, Tussle, Tumult, Upset

Antonyms: Agreement, Aid, Harmony, Tranquillity

Example: The police often seem to hassle young people that are just hanging out on the streets with friends.

9. Compliance (Noun): The action or fact of complying with a wish or command (अनुपालन)

Synonyms: Amenability, Conformity, Obedience, Observance

Antonyms: Difference, Defiance, Denial, Rebellion, Refusal, Veto

Example: In the army, there are harsh consequences for soldiers who are not in compliance with military laws.

Related Word: Compliant (Adjective): Meeting or in accordance with rules or standards

10. Venture (Verb): Undertake a risky or daring journey or course of action (कार्य/उद्यम)

Synonyms: Action, Business, Doing, Task

Antonyms: Idleness, Inaction, Protection, Safety

Example: Although the venture is going to cost me a lot of money, I can easily recoup my funds in three months if the business is successful.

Related Word: Venture (Noun): A risky or daring journey or undertaking