Relevance: GS-2 (Parliament, Governance, Public Finance) | Source: The Indian Express

The Lok Sabha recently cleared several significant bills aimed at strengthening governance, improving service delivery, and updating outdated frameworks.

Major Bills – 

1. Manipur GST (Second Amendment) Bill, 2025

• Aligns Manipur’s tax structure with GST Council decisions taken in the 56th meeting.
• Rationalises GST rates by merging the 5%, 12%, 18% and 28% slabs into two slabs – 5% and 18%, with a proposal for a 40% luxury rate.
• Provides statutory backing to apply GST reforms in a state under President’s Rule.

2. Central Excise (Amendment) Bill, 2025 – Tobacco

• Introduces higher excise duty on tobacco and related products.
• Aims to discourage consumption and raise revenue for health interventions.

3. Health Security (National Security Cess) Bill, 2025 – Pan Masala Cess

• Proposes a new cess on pan masala as the existing GST compensation cess is set to expire.
• Ensures alternate revenue to states and strengthens health-related taxation.

Q. Consider the following statements:

1. The Manipur GST (Second Amendment) Bill gives statutory backing to GST reforms implemented under President’s Rule.
2. The new pan masala cess replaces the GST compensation cess, which is being phased out.
3. Excise duty on tobacco products can be levied only by states under the GST regime.

Which of the above statements are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3