5th September 2025 Current Affairs UPSC: GST 2.0, Foreigners Act, Manipur Pact, NIRF

The 5th September 2025 Current Affairs UPSC edition highlights crucial updates for aspirants. Key topics include the GST 2.0 reforms simplifying taxation, the New Foreigners Act 2025 modernizing immigration laws, the Manipur Peace Pact with Kuki–Zo groups addressing internal security, and the NIRF Rankings 2025 shaping higher education in India. These are highly relevant for Prelims facts and Mains analysis in governance, economy, and education.

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1. GST Reforms 2.0: Relief, Simplification & Growth for All

What’s the News?

• The GST Council has approved a major reform package called GST 2.0, effective from 22nd September 2025.

• The reforms aim to provide relief to consumers, ensure simplification for businesses, and widen the tax base.

• The move comes amid rising concerns from states over revenue losses after the end of the GST compensation period.

Key Points for UPSC (Prelims & Mains)

1. Introduction of GST: Implemented on 1st July 2017 under the 101st Constitutional Amendment Act, 2016.

2. Constitutional Provision: Article 279A provides for the GST Council, chaired by the Union Finance Minister.

3. Nature of Tax: It is a destination-based indirect tax, replacing the cascading system.

4. Taxes Subsumed: GST merged 17 indirect taxes and 13 cesses into one unified system.

5. Growth in Taxpayer Base:

   • 2017: 66.5 lakh taxpayers.

   • 2025: 1.51 crore taxpayers.

6. Revenue Performance: Average monthly GST collections crossed ₹1.65 lakh crore in FY 2024–25 (CBIC data).

GST 2.0 Slabs (2025)

1. 0% Slab – Basic food items, healthcare, and education (essential exemptions).

2. 5% Slab – Railways, economy-class air travel, and essential consumption goods.

3. 12% Slab – Packaged food and garments priced below ₹2,500 (MSME support).

4. 18% Slab – IT services, telecom, garments priced above ₹2,500, and premium air tickets (standard rate).

5. 28% Slab – Luxury cars, tobacco, and aerated drinks (‘sin goods’, subject to additional cess).

Achievements of GST So Far

1. Formalization of the Economy: Significant increase in the number of registered taxpayers.

2. Revenue Buoyancy: Steady growth in monthly collections above ₹1.6 lakh crore.

3. Digital Governance: GSTN has become one of the largest tax tech platforms globally, ensuring transparency.

4. Ease of Doing Business: One nation–one tax has reduced compliance burden compared to the earlier system.

Challenges in GST 2.0

1. Inverted Duty Structure – Inputs taxed higher than outputs (edible oils, footwear). (Highlighted by Parliamentary Standing Committee on Finance)

2. Sectoral Concerns:

   • Textiles – Higher GST (18%) on garments above ₹2,500 reduces demand.

   • Aviation – Premium travel made costlier.

3. Revenue Concerns of States:

   • End of GST Compensation Cess (June 2022) → fiscal stress for states.

   • States demand a 5-year extension of compensation, with 2024–25 as new base year. (Backed by GST Council’s Group of Ministers reports)

4. Compliance Burden – Despite reforms, multiple returns, ITC mismatches, and e-way bills remain complex, especially for MSMEs.

Recent Developments & Global Context

1. OECD & IMF Recommendations: Suggest fewer slabs, a stronger ITC system, and reduced compliance burden.

2. Global Comparisons:

   • EU – VAT system with standard and reduced rates.

   • Canada – Dual system (federal GST + provincial HST).

   • Brazil – Moving to VAT by 2026.

3. RBI’s View: GST 2.0 will help moderate inflation by reducing tax on essentials.

4. IMF 2025 Report: Recognized India’s GST as one of the largest digital tax systems worldwide.

Relevant Conventions & Treaties

1. WTO Trade Facilitation Agreement (2017) – GST’s digital reforms simplify customs and trade procedures.

2. OECD BEPS Initiative – India’s GST system helps tackle base erosion and profit shifting through digital compliance and anti-evasion measures.

Way Forward

1. Slab Rationalization: Move towards a 3-tier GST structure, in line with OECD best practices.

2. Correct Inverted Duty Structures: Introduce sector-specific corrections to remove refund issues.

3. Revenue Compensation for States: Extend compensation for at least 5 more years to strengthen cooperative federalism.

4. Advanced Technology Integration: Use AI and blockchain in GSTN for real-time fraud detection and improved compliance.

5. MSME Support: Simplify return filing and ITC claims for small businesses.

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2. New Foreigners Act, 2025: Unified Framework for Immigration & Security

What’s the News?

• The Government of India has notified the Immigration and Foreigners Act, 2025, effective from 1st September 2025.

• This Act replaces fragmented colonial-era provisions (such as the Foreigners Act, 1946) and introduces a comprehensive, digital, and security-oriented immigration framework.

• It seeks to regulate the entry, stay, movement, and exit of foreign nationals in India while balancing security and humanitarian obligations.

Key Points for UPSC

Legal Framework

1. Replaces Earlier Laws – The Act consolidates provisions of the Foreigners Act, 1946, multiple rules, and piecemeal executive notifications.

2. Objective – To provide clarity in division of powers between Centre and States, reducing ambiguity in enforcement.

3. Institutional Framework – Ministry of Home Affairs (MHA) is the nodal authority for immigration and coordination with States/Union Territories.

Mandatory Documentation & Entry/Exit Regulation

1. Valid Travel Documents – All entrants must possess a passport and visa, unless specifically exempted.

2. Designated Entry/Exit Points – Entry permitted only through notified airports, seaports, land borders, and railway posts as identified by the Bureau of Immigration (BoI).

3. Digital Verification – Integration with e-passport and biometric systems aligned to ICAO (International Civil Aviation Organization) standards.

Immigration Officer’s Powers

1. Authority to validate or refuse entry/exit on grounds of national security, public order, or health emergencies.

2. Power to conduct biometric verification and background checks at border checkpoints.

Registration & Control of Foreigners

1. Foreigners must register with local designated officers (Superintendent of Police/Deputy Commissioner of Police).

2. Hotels, hostels, PGs, and religious institutions must report accommodation of foreigners within 24 hours.

3. Universities and hospitals mandated to report admissions, births, and deaths of foreigners to immigration authorities. (This aligns with recommendations from the Intelligence Bureau and NITI Aayog on tracking foreign presence digitally).

Civil Authority Powers

1. Civil authorities empowered to restrict, seal, or close premises linked with unlawful activities involving foreigners.

2. Local authorities tasked with assisting law enforcement and immigration control in sensitive border regions.

Special Permits

1. Special permits required for entry into protected and restricted areas (such as border belts, tribal areas, and military zones).

2. Applications made through online portals, improving transparency and monitoring.

Exemptions for Special Categories

1. Nepal & Bhutan citizens – visa-free entry through designated points under bilateral treaties.

2. Tibetan refugees – entered before May 30, 2003, with registration.

3. Minority refugees – Hindus, Sikhs, Buddhists, Jains, Parsis, Christians from Pakistan, Afghanistan, and Bangladesh (entered before Dec 31, 2024).

4. Sri Lankan Tamils – registered up to January 9, 2015.

5. Diplomatic & official passport holders, certain “visa on arrival” categories, and foreign military personnel on humanitarian missions (unless restricted).

Recent Developments & Global Context

1. First Major Overhaul – This is the first comprehensive change in India’s immigration laws since Independence, reflecting changing security dynamics.

2. Digital Compliance – India adopting biometric & e-passport verification brings its system in line with ICAO global standards.

3. Global Models –

   • United States – Immigration and Nationality Act (INA) governs entry, visas, and deportations.

   • European Union – Schengen Borders Code provides uniform entry-exit management.

   • Australia & Canada – Strong digital verification and skill-based immigration filters.

4. Security Lens – Rising issues of illegal migration, cross-border infiltration, and refugee influx in Northeast India, coastal states, and sensitive border regions prompted legal strengthening. (Reports by the Parliamentary Standing Committee on Home Affairs flagged gaps in earlier systems.)

Relevant Conventions & Treaties

1. UN Refugee Convention, 1951 & 1967 Protocol – India is not a signatory, but follows selective humanitarian practices for Tibetans, Sri Lankan Tamils, and religious minorities from neighboring countries.

2. ICCPR (International Covenant on Civil and Political Rights) – Guarantees certain rights for foreigners under reasonable restrictions (India is a signatory).

3. ICAO Standards – Ensures India’s immigration procedures align with global aviation security norms.

   SAARC & BIMSTEC Cooperation – Regional dialogues on cross-border migration and counter-terrorism frameworks support India’s immigration reforms.

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3. Peace Pact with Kuki–Zo Groups: Towards Stability in Manipur

What’s the News?

• In September 2025, the Government of India and the Manipur State Government signed a revised Suspension of Operations (SoO) pact with two umbrella Kuki–Zo insurgent groups – the Kuki National Organisation (KNO) and the United People’s Front (UPF).

• The pact seeks to regulate armed cadres, prevent violence, and create space for political dialogue within the framework of the Indian Constitution.

Key Points for UPSC

Provisions of the Suspension of Operations SoO Peace Pact

1. Validity – The pact will remain in force for one year, subject to renewal based on compliance.

2. Rationalization of Camps – Number of designated camps reduced from 14 to 6 each for KNO and UPF.

3. Camp Location Rules – Camps must not be set up near highways, populated areas, or the Myanmar border to prevent cross-border militancy.

4. Verification of Cadres –

   • Mandatory Aadhaar-linked ID cards and biometric records.

   • Physical verification by a Joint Monitoring Group (JMG) comprising representatives from the Army, Assam Rifles, Manipur Police, and Ministry of Home Affairs (MHA).

5. Financial Regulation – Stipends for cadres to be transferred only via Aadhaar-linked bank accounts, ensuring transparency.

6. Restrictions on Armed Groups –

   • No recruitment of new cadres.

   • No ties with other militant organizations.

   • No offensive operations against civilians or security forces.

7. Security Forces Clause – Indian Army, Assam Rifles, and Manipur Police will not act against groups adhering to the pact.

8. Dialogue Mechanism – A tripartite dialogue platform (Centre–State–Insurgent Groups) established to negotiate a long-term political settlement within constitutional limits.

About the Kuki Tribe

1. Ethnic Identity – Belong to the wider Zo/Chin–Mizo ethnic group, speaking languages from the Tibeto-Burman family.

2. Geographical Spread – Present in Manipur, Mizoram, Assam (India), and also in Myanmar and Bangladesh.

3. Colonial Context – The term “Kuki” was a British classification, often divided into “Old Kukis” vs “New Kukis”.

4. Cultural Traditions –

   • Sawm – traditional boys’ dormitory.

   • Lawm – youth clubs for community service and bonding.

5. Economic Practices – Historically relied on Jhum (shifting) cultivation, now transitioning to settled farming and trade.

6. Conflict History – Expansion into Naga and Meitei territories has historically triggered ethnic tensions and violent clashes.

Recent Developments & Security Context

1. Ethnic Violence – The 2023–24 Manipur clashes between Kuki–Zo and Meitei groups highlighted the fragility of ethnic harmony. (Reported by National Human Rights Commission – NHRC and Parliamentary Standing Committee on Home Affairs).

2. Strategic Location – Manipur shares a 400 km border with Myanmar, making it vital for counter-insurgency and India’s Act East Policy.

3. Connectivity Projects – Stability in the region is critical for projects like the Asian Highway-1, Kaladan Multi-Modal Project, and the India–Myanmar–Thailand (IMT) Trilateral Highway.

4. Security Institutions Involved –

   • Indian Army & Assam Rifles – counter-insurgency operations.

   • MHA & Manipur Police – internal security and monitoring.

   • Unified Command Mechanism – ensures coordination among security agencies.

5. Global Parallels –

   • FARC Peace Accord (Colombia, 2016) – demobilization of rebels and reintegration.

   • Good Friday Agreement (Northern Ireland, 1998) – reconciliation between ethnic groups.

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4. NIRF Ranking 2025 Released

What’s the News?

• The Ministry of Education (MoE) has released the National Institutional Ranking Framework (NIRF) 2025.

• The ranking evaluates higher education institutions across India based on multiple parameters, with the aim of improving transparency, accountability, and competitiveness in higher education.

• It has become one of the most credible yardsticks for measuring institutional performance in India.

Key Points for UPSC

Background

1. Launched in 2015 by the Ministry of Human Resource Development (now Ministry of Education).

2. Legal & Policy Basis – Approved under the framework of the National Policy on Education, 1986 (modified in 1992).

3. Annual Exercise – Rankings are released every year and are voluntary in nature.

4. Coverage – Encompasses universities, engineering, management, law, medical, pharmacy, architecture, colleges, and an overall category.

5. Objective –

   • To encourage competition among institutions.

   • To improve teaching, research, and inclusivity standards.

   • To empower students in making informed choices.

   • To align higher education with global best practices while retaining Indian priorities.

Parameters of NIRF Rankings (with Weightage)

1. Teaching, Learning & Resources (TLR) – 30%

   • Faculty–student ratio, academic resources, learning environment.

   • Linked with University Grants Commission (UGC) and AICTE guidelines.

2. Research & Professional Practices (RP) – 30%

   • Publications, patents, funded projects, innovation output.

   • Aligned with National Research Foundation (NRF) under NEP 2020.

3. Graduation Outcomes (GO) – 20%

   • Placements, higher studies, entrepreneurship, success in competitive exams.

   • Supported by data from All India Survey on Higher Education (AISHE).

4. Outreach & Inclusivity (OI) – 10%

   • Representation of women, socially disadvantaged groups, regional diversity.

   • Reflects the mandate of reservation policies, RUSA (Rashtriya Uchchatar Shiksha Abhiyan), and inclusivity goals.

5. Perception (PR) – 10%

   • Employer reputation, peer review by academicians, and societal perception.

   • Important for international collaborations and Study in India programme.

Recent Developments & Highlights of 2025 Rankings

1. Top Institutions (2025) –

   • Overall: IIT Madras retained first place.

   • University: IISc Bengaluru.

   • Management: IIM Ahmedabad.

   • Medical: AIIMS Delhi.

   • Law: NLSIU Bengaluru.

2. India’s Higher Education Landscape (as per AISHE 2024 Report) –

   • 1,100+ universities and 43,000+ colleges across the country.

   • Gross Enrolment Ratio (GER) crossed 29% with over 4 crore students enrolled.

   • Rising focus on multidisciplinary education, research collaborations, and digital learning platforms like SWAYAM and National Digital University.

3. Institutional Reforms –

   • NEP 2020 emphasizes global benchmarking and multidisciplinary universities.

   • NITI Aayog and UGC are focusing on internationalization of higher education.

Global Context & Comparisons

1. International Rankings –

   • QS World University Rankings and Times Higher Education Rankings (THE) dominate globally.

   • NIRF differs by being India-centric, prioritizing inclusivity, affordability, and accessibility alongside research excellence.

2. India’s Position –

   • Few Indian institutions feature in top global rankings.

   • NIRF strengthens India’s domestic benchmarking system while providing a parallel to global rankings.

3. Global Parallels –

   • Similar national frameworks exist in China (C9 League), USA (Carnegie Classification), and UK (REF – Research Excellence Framework).

Relevant Conventions & Treaties

1. SDG 4 (Quality Education) – Ensures inclusive, equitable, and quality education. NIRF aligns with SDG 4 targets.

2. UNESCO’s Global Education Monitoring Report – Advocates data-driven educational accountability; India’s NIRF supports this mandate.

3. G20 Education Working Group (2023–24) – Highlighted digital inclusion, lifelong learning, and ranking mechanisms for knowledge sharing, where India’s NIRF is a showcase model.

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