TaxTMI 
TaxTMI 
Minutes of the 43rd GST Council Meeting held on 28th May, 2021
X X X X Extracts X X X X
X X X X Extracts X X X X
....rofiteering Authority) for the 2nd quarter (July, 2020 to September,2020), 3rd quarter (October 2020 to December 2020) and 4th quarter (January 2021 to March 2021) for the information of the Council. 6. Ad-hoc Exemptions Orders issued under Section 25(2) of Customs Act, ¡962 to be placed before the GST Council for information. 7. Status of the Group of Ministers (GoM) on lOST Settlement 8. GSTN related issues for the consideration of the GST Council i. Sanction for extension of Project REAP, LEAP and BIFA till 31st March, 2022 on T&M basis with delegation to the Chairman to reduce the Manpower, if required. ii. In principle approval to expand the scope of IRP project for e-invoice registration and IRN issuance on expanding the scope with reduction of the threshold of turnover and providing for multiple IRPs, if needed, iii. Proposal for approval of deputation guidelines and to request the States to provide manpower to GSTN with SGST experience. iv. Intimation- the Status update on transfer of share-holding with the States and conversion of Goods and Services Tax Network (GSTN) into 100% Government owned Company. v. Status of Payment by the States and Waiver of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....venue position under Goods and Services Tax 17. Issues related to GST Compensation Cess 18. Information Agenda on constitution of two new GoMs. Preliminary discussion 3.1 The Secretary, GST Council at the outset stated that the last 42nd GST Council meeting was held on 5th and 12th October 2020 while welcoming the Members to the 43rd meeting. The Secretary, GST Council, at the outset placed on record its appreciation for the valuable contribution made by the outgoing Members and welcomed the new Members who attended the GST Council Meeting for the first time. The Secretary placed on record appreciation for the valuable contribution by Dr. Ajay Bhushan Pandey, the outgoing Secretary to the Council. He stated that today's meeting was being held in the backdrop of a second wave of COVID that has engulfed the Country and informed that during the intervening period, the GST Implementation Committee (GIC) and various other Committees have been at work in terms of pursuing the decisions taken by the Council and taking necessary steps to ameliorate the adversities of the pandemic situation. 3.2. He informed the Council that the two GoMs namely one on capacity-based taxation and spe....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... sent in parts over the last ten days. The Officials have met and discussed some of the issues in great detail. She thanked Revenue Secretary for reviving the earlier practice of the Secretary meeting with the Officials of the States on the eve of the GST Council meeting which was helpful and hoped to learn from the exchange with the Officers. She wished that the Council's discussion as always would be very productive/ constructive in the spirit of cooperative federalism and hoped to address all issues which concern the Indian economy particularly now that there was a second wave and post which a lot of decisions pertaining to revival of the economy will have to be taken collectively. The Hon'ble Chairperson asked the Revenue Secretary and Secretary of the Council to start the meeting. Agenda Item 1: Confirmation of the Minutes of GST Council Meeting 4.1 The Secretary, GST Council stated that first agenda item pertained to confirmation of the minutes of the 42nd GST Council meeting held on the 5th and 12th October 2020. He further stated that some comments have been received from Rajasthan, Telangana and Odisha which are basically in the form of some typographical errors and som....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on Committee (GIC) for information of the GST Council 7.1. The Commissioner, GST PW, CBIC informed that the GST Implementation Committee (GIC) took certain decisions between 14-09-2020 and 01-05-2021. Due to the urgency involved and due to prevailing Covid-19 situations, while some decisions were taken through web meeting of GIC, other decisions were taken after obtaining approval by circulation amongst the GIC Members. The details of the decisions taken are available in the detailed Agenda Notes (Vol-1, page 96-146). Thereafter, he made a presentation (attached as Annexure-Ill) on the decisions taken by GIC. The decisions taken were submitted to the Council for information. 7.2. The Hon'ble Minister from Punjab suggested that rather than for information, these decisions should come for ratification or approval of the Council. 7.3. The Secretary, GST Council stated that there were fifty-three decisions taken by the GIC in the intervening period and as many as thirty-eight were trade facilitative measures such as relief in return filing, capping of late fees, extension of due dates for filing, etc. Ten decisions were in the nature of enforcement measures, including the one taken....
X X X X Extracts X X X X
X X X X Extracts X X X X
....airperson directed that the issue may be referred to the Law Committee to report on what the Law Committee feels whether any rules have been violated in bringing in GIC decisions to the Council for information. On the basis of the report of the Law Committee, she suggested that discussion may be held in the next meeting of the Council. 7.7. The Hon'ble Member from Chhattisgarh stated that he believes that an executive body cannot supersede the elected body. He further stated that there are number of precedents where post-facto approvals are taken. If an executive body has taken an action or taken step at any point in time, the approval was always sought. 7.8. The Hon'ble Member from West Bengal stated that the GIC consists of 4 States only. All states are not represented in GIC. Any major decision in GIC cannot take decisions on behalf on 31 States. Extended policies can be extended but no major decisions can be taken as it was too small a Committee. 7.9. The Secretary, GST Council stated that in the Law Committee there are 10 States viz. Maharashtra, Gujarat, West Bengal, Karnataka, Punjab, Madhya Pradesh, Odisha, Uttar Pradesh, Rajasthan and Bihar and in the GIC as very rightl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rs for establishing a mechanism to tackle grievances of tax payers was approved. In view of the above decision, an order regarding constitution of Grievance Redressal Committee was issued by the CBIC vide F. No. 20/10/16/2018-GST (Pt. 1) dated 24.12.2019 and the matter was followed up by the GSTC secretariat. 8.2. As reported in the Agenda GRCs have been constituted in all except the State/Centre level Zones of Gujarat (Ahmedabad) and Haryana (Panchkula). 8.3 The Hon'ble Member from Haryana informed the Council that needful has been done in this regard and that the relevant order shall be provided to the GST Council Secretariat. 8.4 The Hon'ble Member from Gujarat also stated that the needful has been done in this regard and that the relevant order of the Constitution of the GRC will be sent to the GST Council Secretariat. Agenda Item 5: Performance Report of the NAA (National Anti-Profiteering Authority for the 2nd Quarter (July, 2020 to September, 2020), 3rd quarter (October, 2020 to December, 2020) and 4th quarter (January, 2021 to March, 2021) for the information of the Council 9.1 The Secretary presented the agenda for information of the Council which took note of the pe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....9 vaccines had already been exempted from BCD and/or Health cess for limited period, vide Custom notification No. 27/2021-customs dated 20.04.2021, as amended an No. 28/2021 Customs dated 24.04.2021. In view of the prevailing situation, Ad hoc exemption Order No. 4/2021-Customç dated 3.5.2021 has been issued granting exemption from IGST on those goods for COVID-19 relief imported free of cost for free distribution till 30th June, 2021, which are covered under the above mentioned Customs notification. This exemption Order was anticipated to ease the tax incidence on donated COVID-19 relief material meant for free distribution in the country. 10.3 He further stated that all these exemption orders were issued under sub-section (2) of section 25 of the Act, 1962 (52 of 1962) but the whole of the Integrated Tax leviable thereon under sub-section (7) of section 3 of the Customs Tariff Act 1975 (51 of 1975), read with section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) was getting exempted. Hence these Ad hoc Exemption Orders issued by CBIC are placed for the information of GST Council. 10.4 The GST Council took note of Ad-hoc Exemptions Orders issued under ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....xperiencing for states and shall help improve the functioning of GSTN. 12.3 The Secretary stated that unless there was any intervention by the Members on the item numbe₹ 8 (i), (iii), (iv) and (v) which are routine items, a presentation on (ii) can be given. Hon'ble member from West Bengal stated that no presentation on these issues was required. But he enquired about the quantum of GST fraud and as to whether it has gone up. 12.4 The Officiating CEO, GSTN stated that the expression fraud means duty short paid or ITC related frauds. The quantum of fraud cannot be easily commented but the cases detected figure call be shared. Overall, as a pattern, after the REAP project wherein a new statement GSTR-2 B has been introduced, where the credit claimed cannot be more than 5% of the eligible credit, there was improved compliance and hence the revenue figures have grown from October to March consistently. He stated that he shall provide the requisite figures to West Bengal. He also informed that GSTN was running a project BIFA where the centre and state have made very good cases consistently. Compliance has improved but the quantitative terms shall be shared separately after consu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....having nil or very small tax liability, who are required to pay a high amount of late fee in a number of cases (even higher than their tax liability), due to the higher amount of capping of the late fee. An analysis of late fee collected from taxpayers, with respect to their turnover and with respect to tax paid in cash, was presented. He stated that the Law Committee has recommended to rationalize the late fee, by having some correlation of capping of late fee with the turnover / tax liability of the taxpayers. 13.3. Commissioner, GST PW informed that the Law Committee has proposed that the late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR-1 may be capped, per return, as below: (i) For taxpayers having nil tax liability in GSTR-3B or nil outward supplies in GSTR-1, the late fee may be capped at ₹ 500 (₹ 250 CGST + ₹ 250 SGST), irrespective of the Annual Aggregate Turnover (AATO). (ii) For other taxpayers: a. For taxpayers having AATO in preceding year upto ₹ 1.5 crore, late fee may be capped to a maximum of ₹ 2000 (₹ 1000 CGST+₹ 1000 SGST); b. For taxpayers having AATO in preceding year between ₹ 1.5 crore to S....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... filing of reconciliation statement in FORM GSTR-9C for the Financial Year 2018-19 and 2019-20 was increased from ₹ 2 Crore to ₹ 5 Crore by amending Rule 80. The Commissioner, GST PW also informed that vide Section 110 of the Finance Act, 2021, sub-section (5) of Section 35 of the CGST Act is omitted to remove the mandatory requirement of getting annual accounts audited and reconciliation statement submitted by specified professional. He added that vide Section 111 of the Finance Act, 2021, Section 44 of the CGST Act is substituted to provide for filing of the annual return which may include submission of reconciliation statement on self-certification basis. It further provides that the Commissioner may exempt a class of taxpayers from the requirement of filing the annual return. These amendments made through Finance Act 2021 will come into effect from a date to be notified by the Government. He also informed that the said amendments have been viewed very positively by trade, as it will reduce time and cost for them in getting certification of CAs and therefore, it would be desirable to notify the said amendment in provisions of the Act at the earliest, so that there wa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s in the Return related provisions of the CGST Act, 2017: 13.11. The next Agenda Item 9A(iii) was regarding proposal of amendments in the return related provisions of the CGST Act, 2017. The Commissioner, GST PW stated that the original design of return involved an elaborate process of filing of GSTR-1, 2 & 3 in a sequence which also envisaged inter-linking with back and forth flow of invoices and 2-way communication, as detailed in the existing return related sections viz. Section 37 to 43 of the CGST Act, 2017. He added that in the 42nd meeting of the GST Council, it was recommended that the present system of GSTR- 1/3B return filing to be continued and the GST laws may be amended to make the GSTR-1/3B return filing system as the default return filing system. Accordingly, the Law Committee deliberated on the matter and has recommended amendments to return related provisions of Section 37, Section 38, Section 39, Section 41, Section 42, Section 43, Section 43A and consequential amendments in Section 16, Section 29, Section 34, Section 47, Section 49, Section 50, Section 52 and Section 54 of CGST Act, as detailed in Annexure A to the Agenda Item No 9A(iii) Notes (Vol 2/pages 195-....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... also discussed in detail in the Officers' Meeting held on 27th May 2021. Agenda 9B(i) -Late fee Amnesty Scheme: 13.15 The first Agenda Item 9B(i) was regarding conditional reduction in late fee for delayed filing of FORM GSTR-3B for months from July, 2017 to April, 2021 as an Amnesty scheme for taxpayers to provide relief from huge burden of late fee. The Commissioner, GST PW stated that a number of taxpayers, especially small taxpayers, could not file their GSTR 3B returns earlier, especially during COVID times, due to lack of knowledge, lack of funds and other difficulties faced, and are now facing problems in filing these pending GSTR-3B returns due to high accumulation of late fee. It was proposed that a Late Fee Amnesty Scheme may be considered for reduction of late fees for GSTR-3B returns for tax periods from July, 2017 to April, 2021: i. late fee to be capped to a maximum of ₹ 500/- (₹ 250/- each for CGST & SGST) per return for taxpayers, who did not have any tax liability for the said tax period; and ii. late fee to be capped to a maximum of ₹ 1000/- (₹ 500/- each for CGST & SGST) per return, for other taxpayers; Such reduction / capping in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eturn and Monthly payment (QRMP) Scheme to Quarterly return and Quarterly payment (QRQP) Scheme: 13.19 The next Agenda Item 9B(iii) was regarding proposal for converting quarterly return and monthly payment (QRMP) Scheme to quarterly return and quarterly payment (QRQP) scheme. The Commissioner, GST PW stated that the GST Council in its 42nd meeting had recommended a Quarterly Return and Monthly Payment (QRMP) Scheme for registered persons having turnover up to ₹ 5 Crore, which has been implemented with effect from 01.01.2021. The QRMP scheme was available to approximately 89% of the total tax base. As per feedback, there was a feeling in the taxpayers feel that the requirement of monthly assessment and payment of tax was akin to compliance for filing of return on monthly basis, and therefore, the scheme was not providing them the actual benefit of reduced compliance burden. He informed that though the scheme provides an option of payment of monthly tax through a system-generated challan, thus obviating the need for self-assessment of tax liability on actual basis during first two months of the quarter, but a number of taxpayers are still opting for payment of monthly tax on....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... details of such scheme need to be work out by the officers. The Hon'ble Member from Himachal Pradesh stated that in Himachal Pradesh revenue from small taxpayers was 15% and that such conversion to QRQP would defer large amount of revenue to the end of the quarter. The Hon'ble Member from Karnataka stated that though he agrees in-principle with the proposed QRQP scheme, he suggested that the present QRMP may be reviewed at a later stage. He also suggested that this proposed threshold limit of ₹ 5 crore may not be increased at a later stage. The Hon'ble Member from Tamil Nadu suggested that GSTN may provide data on what would be the impact on flow in liquidity if QRQP was opted. The Hon'ble Member from Odisha mentioned that QRMP may be continued at present, as it was too early to make change. The Hon'ble Member from Chhattisgarh stated that QRQP would affect flow of funds to States and also stated that the Law Committee should first examine the said scheme. The Hon'ble Member from Jharkhand stated that they would support the views of Chhattisgarh and prefer to continue with QRMP. 13.21 Finally, the Secretary mentioned that taking the sense of the House, the issue may be refe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aggregate turnover upto ₹ 5 Crore (i) For May, 2021, the following relaxations, as provided earlier for March and April 2021, may be provided: * For May, 2021 (for the taxpayers opting to file monthly returns), NIL rate of interest for first 15 days from the due date of furnishing FORM GSTR-3B and @9% thereafter till further 15 days * Waiver of late fee for delay in furnishing FORM GSTR-3B for May 2021 (for taxpayers filing monthly returns) for 30 days from the due date. * Waiver of interest for 15 days for taxpayers filing delayed PMT 06 Challan (for payment of tax liability) and waiver of interest by 9% interest thereafter for 15 days further, from due date of filing PMT-06 challan for May, 2021 for QRMP taxpayers filing quarterly returns. (ii) In addition, further relaxations in rate of interest and late fee tòr March and April, 2021 may be provided as below: * Reduction in interest: NIL rate of interest for first 15 days from the due date of FORM GSTR-3B or for filing delayed PMT-06 Challan (for payment of tax liability), and 9% thereafter for further 45 days and 30 days for March,2021 and April 2021 respectively, and 18% thereafter (for normal taxpayer....
X X X X Extracts X X X X
X X X X Extracts X X X X
....son or 30th June, 2021, whichever is later. The same were presented to the Council by the Commissioner, GST PW, CBIC and was agreed upon by the Council. 13.24. On the 'issues recommended by the Law Committee for the consideration of the Council' the Council approved agenda item Nos.9A (i), (ii), (iii) & (iv) as detailed below: (i) The late fee for delay in furnishing of FORM GSTR-3B, FORM GSTRI, FORM GSTR-4 and FORM GSTR-7 to be reduced/ capped, per return, as proposed in agenda note and detailed in agenda 9A(i) above. All the above proposals to be made applicable for prospective tax periods i.e. for the tax period of June 2021 and onwards. For FORM GSTR-4, the same would be applicable from FY 2021-22. (ii) Regarding Simplification of Annual Return for Financial Year 2020-21: A. Section 110 and 111 of the Finance Act 2021, relating to amendment in section 35 and 44 of the CGST Act may be notified at the earliest (on 1.8.2021) by the Centre. The States will be required to make Corresponding amendments in their respective SGST Acts retrospectly with effect from the same date. B. Rule 80 of the CGST Rules, 2017 to be amended as detailed in Annexure A to the Agenda Item No....
X X X X Extracts X X X X
X X X X Extracts X X X X
....onal and would apply if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021. (ii) Notifying date for Section 112 of the Finance Act 2021 and date for other Sections of the Finance Act 2021: A. Section 112 of Finance Act 2021, relating to retrospective amendment of Section 50(1) to be notified at the earliest by the Centre. 01.06.2021 may be appointed as the date from which the provision of section 112 of the Finance Act, 2021 would come into force. B. All the states may carry out the corresponding amendments in SGST Acts, relating to various amendments done through the Finance Act, 2021, by 1st October 2021. (iii) Proposal to convert QRMP to QRQP: As regards the proposal to convert the present quarterly return and monthly payment (QRMP) scheme to quarterly return and quarterly payment (QRQP) scheme, it was recommended that the Law Committee may examine the issue in greater detail and then bring it back to the Council. (iv) Difficulties faced by taxpayers to comply with timelines under GST due to COVID related restrictions: In view of the prevalent Covid situation in the country, the Council recommended to provide further COVID related rel....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Hon'ble Member from Kerala supported the agenda and acknowledged that cess was very helpful to them in gathering resources to fight the Kerala floods. 14.6 The Hon'ble Chairperson stated that in case of Kerala, a GoM was formed to look into issues relating to imposition of Cess. Similarly, in the request of Sikkim also, a GoM may be constituted to submit its recommendations for the consideration of the Council. The GoM can hopefully submit its suggestions in two weeks, which can be circulated to all the States and a call can be taken from there. The Council agreed to the proposal of constituting a GoM. Agenda no 11: Issues recommended by the Fitment Committee for the consideration of the GST Council 15.1 The Secretary asked Shri G D Lohani, J.S, TRU to place the agenda before the Council. J.S, TRU briefed the Council on the recommendations made by the Fitment committee, to be taken up for decision by the Council. He thereafter made a presentation (Annexure-IV) listing the recommendations made by the Fitment committee on issues related to COVID relief agenda No 11(i). In continuation he also made presentation on Agenda items 11(ii) (Fitment recommendation on goods), 11(iii) (F....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ate of 5% (where GST on COVID related medicine was 12%) it was desirable that such reduction was done on specific recommendation of Ministry of Health, more so as the COVID protocol was ever changing. 15.4 The Hon'ble Member from Delhi stated that he was grateful to the Hon'ble Chairperson for the changes which have been made in the tax structure. He further stated that Oxygen cylinders should be included in the list in Agenda 11(i), along with Oxygen Concentrators/generator and pulse oximeter. He proposed that the suggestion made to reduce tax on donations which were purchased from abroad and donated in India should be made retrospective from 3rd May, as many donations had been made ¡n the peak COVID period and they should be covered by the benefit of the notification. He also submitted that the items on which the Fitment Committee has proposed the tax to be reduced to 5% can further be made exempted, as it was an ad-hoc exemption arrangement for some time and it is not substantially related to ITC. 15.5 The Hon'ble Member from West Bengal, further suggested that the ad hoc exemptions should be extended to the degree possible, as he suggested that date of July 31, 2021 may....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ital and corporate entities were also sourcing vaccines. This does not look very good even as optics. He suggested that everything that was required for testing, treatment and prevention of the disease can be exempted. These concessions will also help them prepare for the next wave and he stated that this would allow to ramp up their health infrastructure. He seconded the opinion of the Member from West Bengal to zero rate the COVID related items, or to apply a nominal rate of tax with full ITC benefits. He further stated that a blanket exemption could be given on the recommendation of the Ministry of Health. 15.7 The Hon'ble Member from Karnataka said that he welcomed the IGST exemptions given. He stated that the scope of proposed exemption (goods imported on payment basis for donation) should be the same as the present scope (free imports for free distribution), that was free imports and free distribution for state government, corporates and any entity, where donor purchases and gives for free distribution, with state government certificate. He agreed with the Hon'ble Member form West Bengal, (or extension of time beyond July. He further said that other things like PPE kits and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to be adopted to counter COVID. He stated that for vaccines, drugs related to COVID and on related equipment, GST should be zero rated. The laboratory kits, including thermometer may also be brought to zero rating, and this can only be done for a short period, such as three months. 15.11 The Hon'ble Member for Maharashtra said that the state was prepared to vaccinate all citizens. He said that it was important for all COVID related equipment should be given as much of tax relief as was possible. This would reduce the burden on people. Medical grade oxygen, oxygen concentrator and pulse oximeter and COVID testing kits are used by a large number of people. Reduction of rates on these items was appropriate, and that he supported the tax concessions given. He requested that the new rates on COVID testing kits and oxygen concentrator should be given till 31st December. He also said that hand sanitizers should also be taxed at 5%. 15.12 The Hon'ble Member from Chhattisgarh said that on one hand it was proposed that the States should be allowed to impose a cess of 1%, as the States need revenue, and on the other the zero rate structure was not proposed to be accepted, rather a tax of 5....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is was the time when it needed to be adopted, even if for a limited time period. The Council should adopt a zero rated tax on cover goods, what those goods are could be worked out. 15.13 The Hon'ble Member from Uttar Pradesh stated that if zero rating was allowed, it would cause loss to the State governments, and further that it would create a bad precedent. All government work on the basis of tax receipts, and that whatever tax was imposed, it should not be zero. He stated that he was in agreement with the recommendations made by the Fitment committee and the concessions given by the Union government. He submitted that the Concessions should be extended three months beyond the 31st July, 2021 end date for them. 15.14 The Hon'ble Member from Odisha stated that the Country was going through the tough phase of the COVID pandemic, and that it was a war like Situation. All resources should be focused on winning this war against COVID. He referred to the letter written by the Hon'ble Chief Minister of Odisha regarding the exemption of tax on GST on procurement of vaccine, and that 0% percent should be charged on the procurement of vaccines. The States have been asked to procure vaccin....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... more tax concessions are given, the new industries and entrepreneurs which have developed due to COVID would become habituated to not paying taxes. Governments needed funds from taxation to run. He concurred with Hon'ble Member from Meghalaya on the need for a balanced approach, as revenues were needed from someplace, and that impractical proposals would not help. He stated that everyone needs to be on the same page to fight the pandemic. The message from the Council should be that the Council stands with the common man to face this situation. 15.18 The Hon'ble Member from Arunachal Pradesh stated that he also felt that the Council should take a balanced view. He stated that he agreed to the recommendation of the Fitment committee, but he requested that the period of the ad hoc concessions should be extended. 15.19 The Hon'ble Member from Rajasthan stated that there was a lockdown in place, and that commercial institutions and industries have been shut during this period. He stated that in these circumstances if someone was providing oxygen, medicines or COVID relief material, they should not be taxed. There were exemptions given under Income Tax to charitable institutions. Duri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oxygen was being supplied. He stated that oxygen was the most critical component of the treatment. He suggested that there could be reduction of tax on these items. Such a reduction can also be considered for Ambulances as well, seeing that there has been a need to procure ambulances in large numbers. He said that the states may need to make more expenditures to prepare for a possible third wave so the States would need the resources. He reiterated that private/foreign vaccine would cost around 2000 rupees per individual for two doses, so the taxation on this vaccine would need to be discussed in the Council. He stated for humanity and citizens of the country, revenue may be sacrificed for a short period of time. He stated that in the interest of the Nation and welfare of the people, whatever decision will be taken by the Council on this matter, Gujarat will support it. 15.22 The Hon'ble Member from Tripura stated that he appreciated the view of the Member from Meghalaya, as there are challenges to both life and livelihood. He stated that he agreed with the Member from Uttar Pradesh that zero percent could create a bad precedent financially. He said that Member from Meghalaya poin....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... He reiterated that the GST on ventilators and hand sanitizers should be modified. 15.25 The Hon'ble Member from Uttarakhand stated that he was in favour of zero rating COVID medicines and equipment. 15.26 The Hon'ble Member from Tamil Nadu stated that India stands unique in the centralization of taxation powers, direct and indirect. He referred to the promise of GST in buoyancy of taxes and the growth of GDP, with the risks being the loss of autonomy of the States. Some of the risks have materialized and many benefits have not. He stated that there was some lack of clarifications on the structural aspects. A lot of data was contained in the GSTN which was not being provided to the States. He said that the Finance commission has not considered ratio of taxes originated in the al location of the divisible pool, and that there was an increasing trend away from the high GDP States to the low GDP states. He stated that some small States have asked for special consideration due to their small size, and it could not be such that they are considered as small States in some cases, and treated as equal in other cases. He stated that in the case of zero rating, there was a divide between t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ike soaps, and that opens a Pandora's box. He stated that similarly RTPCR machines and genome sequencing kits are used by institutions, and whatever was used by institutions, reduction has not been recommended by the Fitment Committee, which has representations from 9 states. He said that for vaccines imported from abroad, and which will be distributed free of cost to the people, these are already included in the ad hoc exemption and they would attract no duty. He requested the Chair to suggest a view on the extension for concessions given, as unanimously all Members were suggesting such extension. He suggested that the concessions be extended till August 31, 2021, and that power to extend it further, based on the prevailing conditions may be delegated to the Hon'ble Union Finance Minister, which will be brought to the Council meeting after that. 15.29 Before this include what was said by the chair on maintain confidentiality. The Hon'ble Member from West Bengal stated that the confidentiality element of the Council must be continued, as it would allow for free discussions. He stated that the matter needs to decided based on humanitarian ground. He suggested that the mechanism ado....
X X X X Extracts X X X X
X X X X Extracts X X X X
....As far as toy balloons are concerned, their classification falls under 9503 and the GST exemption notification would be amended accordingly. 15.33 Agenda item No.11(iii) on services- the decision was to clarify that supply of services to an educational institution including Angaiiavadis by way of catering including mid-day meals sponsored by the Centre, State or UTs was exempted from GST. The service provided by National Board of Education or similar central or State Board for entrance examination to educational institution and inputs relating are exempted On the construction of house, the special circumstances have been explained in detail under which the ITC would be admissible; the MRO facility which was given for the airlines, similar facility was proposed to be given for the ship repair; the guarantee of loan by State or Centre does not attract IGST; it was also being clarified that the annuity paid as deferred payment for construction of roads/highways was not exempted from GST as the tolls or annuity in lieu of tolls are. Similarly, regarding the supply of composite service of milling and fortification of wheat flour under PDS and the services which are taken by the wheat f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ospital to calculate the proportionate benefit, On the other hand, if ventilators are purchased by the State government or the central government the taxes are paid by the State government and central government and the taxes also Come back to the State government and central government. 15.37 The Hon'ble Member from West Bengal stated that his humble dissension was on the principle that the council must look at either zero rating or 0.1 %. On which item the said zero rating or 0.1% shall be applicable Can be discussed. Also, there will be a kind of public pressure on the COVID Control items, so, they will be forced to pass on the benefit, 15.38 The Hon'ble Member from Punjab disagreed with this logic that by reduction of the tax, the manufacturer or the dealers or the hospital would stand to benefit. There was an Anti- Profiteering Authority and the benefit of the tax must be passed on to the Consumer, otherwise, there could be prosecution. Further, in the last few years, the concessions have been given to the restaurant hotels, so on and so forth and they are being passed on to the consumers. 15.39 The Hon'ble Member from Delhi stated that there are small hospitals and if they....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cines to states free of cost for people above 60 years. The Central government was supplying free vaccine to people above 45+ through Government hospitals. She stated that it may be noted that both the Centre and States are making all out efforts continuously to provide relief to the people in COVID pandemic times. 15.45 The Hon'ble Member from Tamil Nadu stated that at this point anyway, we are all constrained in our ability to source material. He stated that the discussion for reduction was not between 28% and 0% but only between 5% and 0% /1% which was relatively small number in the scheme of the government of India or even for that matter, the government of the States. 15.46 The Secretary stated that the zero rating was available only in a few exceptional circumstances as has been discussed in the officers meeting also. If the zero rating was expanded today, there are certain implications for the future. This was the reason for the suggestion of the Fitment Committee which has about nine or ten States and the States had in their own wisdom supported that view. 15.47 The Hon'ble Chairperson invited the MoS to say a few words. Further, she suggested that a Group of Ministers(G....
X X X X Extracts X X X X
X X X X Extracts X X X X
....there have been instances in the past when the benefit of reduced rates was not passed on like in the case of restaurants when rates were reduced from 18% to 5% with no ITC. There was no guarantee that if the rates are reduced to 0.1 % or zero, the benefit will be passed on to the end consumer, that is, the patient. Further, in case of sanitizers, if rates are reduced, soaps will also be affected. It will lead to a cascading effect on what has been decided earlier in the GST council. So, the Council may go by the recommendations of the Fitment committee. Also, the matter can be decided by the GoM. 15.55 The Hon'ble Member from Chattisgarh stated that GoM can give their opinion to the Council and the decision should be taken. 15.56 The Hon'ble Member form UP stated that in the present circumstances, formation of GoM was the most appropriate way to find a way out. It has been the tradition of this GST Council that the decisions have been taken with the common consensus. Therefore, considering all the circumstances, the decision of formation of GoM was appropriate and that the report can be submitted in 1 week instead of 10 days. 15.57 The Hon'ble Member from Meghalaya agreed with ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... was regarding the applicable GST rate on the supplies relating to disability aids and equipment used by persons with disability, consequent to the Order dated 26-10-2020 of Ho'ble Supreme Court of India in the matter of Nipun Malhotra Vs. Union of india [Writ Petition (Civil) No.725 of 2017]. The gist of the issue covered under this Agenda Item was as follows: 15.64 Under GST regime, a concessional rate of 5% has been prescribed on goods used by the persons with disability [vide S.No. 256 and 257 of the Schedule 1 of notification No. 1/2017-Central Tax (Rate) dated 28th June., 2017]. These items are being subjected to the concessional rate of 5% in order to allow the suppliers of these to avail the Input Tax Credit (ITC) and get the refund of accumulated ITC on account of inverted duty structure. In case, these goods were to be exempted, the suppliers of the said goods would not be allowed to avail the ITC and the tax paid by such suppliers on the inputs would become a part of the cost of the final supplies to consumers. 15.65 On receipt of some representations from trade and individuals the issue of taxation of the goods used by the persons with disability was discussed in the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y of 5% GST on the goods used by the persons with disability. 15.69 Subsequently, the petitioner has filed a representation dated 25th November, 2020 seeking abolition of the 5% GST imposed on the items used by the persons with disability. The copy of the representation dated 25-11-2020 was placed for consideration of the Council as Volume-4 of the detailed Agenda Notes. 15.70 The representation was examined and issue was discussed in the Fitment Committee and the Committee observed that, tax policy in general and indirect tax concessions in particular, do not appear to be the right instrument to provide relief in the instant case. Indirect tax concessions, especially full exemptions usually result in duty inversions that blocks input tax credits which may lead to increase in costs of the goods required by the beneficiaries. Besides, a minimum level of GST helps in encouraging domestic manufacturing of these items thereby reducing the dependence on international market for these crucial goods. Committee also felt that zero rating for domestic consumption was not permissible in law. As such, the goods are at lower rate slab of 5% and this rate has been consciously recommended by t....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., the Council recommended that the manufacturers of Ice Cream and other edible ice, whether or not containing cocoa, manufacturers of Pan Masala and Tobacco products need to be excluded from the composition levy. Exclusion of ice cream was made on the grounds that major input for ice cream was milk which was exempt from GST, therefore allowing composition levy on ice cream will lead to significant loss of tax revenue. 15.74 Writ Petition (Civil) No. 5252/2019 was filed by MIs Del Small Ice Cream Manufacturers Welfare Association challenging the exclusion of ice cream from the composition levy under Section 10(2)(e) of the CGST Act 2017 inter alia on the grounds that the reasoning for exclusion of ice cream was fallacious as ice cream does comprise of large number of other components on which GST was levied. 15.75 Further, the petitioner also contended that the GST Council in exercise of power under Section 1 10(2)(e) of the Act has clubbed ice cream with pan masala and tobacco which are sin goods very unlike ice cream. 15.76 The Hon'ble Court in its Order dated 09.02.2021 in the present case, has made the following observations. i. A reading of Section 10(2)(e) of the Act show....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ducts derived from milk, or both, with or without addition of nutritive sweeteners and other permitted non-dairy ingredients. 15.80 In case of ice cream, approximate costing calculations show that for every ice-cream manufactured of value ₹ 100, ₹ 54 worth of milk and cream was used which was exempt from GST which was the primary input. A detailed analysis was done by Fitment Committee as placed in the Agenda Item shows that total tax paid on inputs worth ₹ 100 was ₹ 4.17 which was less than 5% of the value of inputs. Hence, ice cream dealer was required to pay significant portion of his liability in cash (ITC being low). 15.81 The market size of ice cream in India was estimated to be around ₹ 15000 Cr in 2019. This market was dominated by Amul and Kwality Walls (together account for 75% of the market). Other big players include Vadilal, Naturals, Havmor, Mother Dairy etc. in addition, there are few local brands that enjoy significant turnover. However, there are many small venders operating locally who may have turnover of upto ₹ 1.5 Cr. They may have smaller share of the market but are large in numbers. 15.82. The Fitment Committee examined ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ared to the final product, creates distortion in terms of ITC overflows, which in turn causes hardship to domestic manufacturer vis-a-vis imports. Further, domestic manufacturers get refund accumulated ITC on inputs goods only. Refund of accumulated ITC on input services and capital goods are not allowed. Inversion in GST rate has impacted investment decisions, led to litigations, and created a need for giving refunds, which in itself entails efforts on parts of taxpayers. The refund was estimated to be ₹ 25,000 Cr. on this account and was likely to increase every year. Detailed presentations were made on this issue in the 39th and the 40th meeting, wherein four items representing the basket of the inverted rate structure items (involving higher inversion and refund) were discussed. Out of the four items, the Council has already taken decisions on mobile phones and its parts, and rate of these items were revised from 12 to 18 percent to correct inversion in rates. On the other items, the Council has taken a view that on these items, while in principle, correction of inversion was required but now was not the right time because of the prevailing situation. 16.3. Recommendatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l and stated that the same along with the issue of compensation cess was also discussed in the officers meeting and as of now, the compensation Cess was available till June, 2022. 16.7 The Hon'ble Member from West Bengal stated that he has received representation from across the country from associations from Gujarat & Maharashtra as also from the national association which relates to garments, ready-mades and Cotton in particular. He agreed with the proposal that there was a need to correct the inverted duty structure But as per the representations from the apex bodies of the garment manufacturers who had in fact earlier asked for correction in inverted duty structure from Gujarat as well as Maharashtra have now requested not to change the inverted duty structure in the middle of Covid pandemic. He stated in principle, he was in agreement that the inverted duty structure was to be corrected but not at this time. As was well known, the job loss was now 5.6 Crore or more, 14.4% job loss among those who were aIready working are not new people looking for jobs. He requested that all inverted duty structure corrections on all these items may be held back though he has only received re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. Some amount of prior consultation should take place in this regard. He mentioned that he has heard about an agitation somewhere in Gujarat and as far as possible tax must be collected at the early stage of the chain from large manufacturers of fiber and yarn so that downstream industry finds little incentive to evade taxes. He stated that he does not see much rationale to treat natural fibers and yarn differently from others. He further stated that, what is relevant is the tax rates on fabrics and garments. He further urged that the entire chain be kept at a uniform rate to avoid this type of tax evasion. He suggested doing a comprehensive review of all the rates, all the exemptions and maybe giving the Council three to six months to do so. He stressed upon the stake holder consultation at least in textiles, or otherwise, there may be an agitation. 16.10 The Hon'ble Member from U.P. stated that this issue has already come to the meeting before also many a times and the Council has deferred it many times. He submitted that the decision on the agenda should be made in this meeting. He stated that the proposal that has come from the Fitment Committee is justified even if this is m....
X X X X Extracts X X X X
X X X X Extracts X X X X
....guidance of the council in the matter. 17.2 JS (TRU) stated that while denatured alcohol was taxable at 18% GST, however, there have been divergent views regarding GST on ENA used for manufacturing of alcoholic liquor for human consumption. This matter was listed before the GST Council earlier. This issue has been raised because ENA or rectified spirit as it is sold, is not directly consumed by human beings but it is used as an input for manufacturing. So the issue arises that whether the taxing entry in state covers ENA. In earlier discussions the GST Council took a decision to maintain status quo. In between legal Opinion of Learned Attorney General was also sought and the opinion so received was placed before the Council. The arguments to keep ENA outside GST were based on (i) the decision of the Hon'ble Supreme Court in case of Bihar Distillery, and (ii) in the previous regime, the States were collecting VAT on ENA. However, learned Attorney General clearly opined that ENA is an input for the manufacture of alcoholic beverages for human consumption. It is an industrial item and therefore, it would be covered under GST and it was also highlighted in his opinion that the Bihar D....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is used for human consumption. Here, now with regard to the jurisdiction and power to tax between GST and Sates, two issues have been taken. One was the 3-bench judgment of Supreme Court where it says the State can levy excise duty only on potable liquor fit for human consumption and as rectified spirit does not fall under the category of State list, it cannot impose any excise duty. Second was the Opinion of the learned Attorney General that the judgment of court in Bihar Distillery doesn't denude the Centre & State of the powers to levy GST on ENA that is used to manufacture alcoholic liquor for human consumption. Here, actually the genesis and the origin point of Bihar Distillery case was as per Opinion of Learned Attorney General in paragraph 4. It was of different nature and doesn't truly reflect on the jurisdiction of taxation. It was only about a particular case where particular Distillery manufacturing ethanol -whether the State government had complete jurisdiction over them or not but not specifically on taxation aspect. Herein, while referring to the opinion of the learned Attorney General in Para 5 of his Opinion, he says that the 3 Judge bench was constituted where Sta....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... April, 2017, cess & surcharge on petrol was ₹ 21.48, it increased to ₹ 32 and similarly on diesel from ₹ 17.33 to ₹ 31.83. Because of the surcharge on Income Tax, corporation tax and also on petroleum products, the amount of money that was coming to the State has reduced. The surcharges out of the cesses & surcharge from IT companies, IT others & special additional duties of Excise on Motor spirits, it was almost on 2020-21 RE, which was about 1.60 Lac Crores that was almost the size of the entire compensation cess. In such a situation, it becomes imperative for the states to put before the GST Council the request & opinion to consider this particular issue of anything to do with the alcohol for human consumption to be completely within the authorities of the State because of the limited options in the State. One was VAT on petroleum & one was Excise. Moreover, excise policy is extremely state specific. Dual taxation on any product such as alcohol for human consumption not only brings the price of the product up, it also creates a lot of confusion which needs to be put an end to this. It is from almost 20th GST Council meeting, the issue has been under disc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ke care with provisions of roads, schools and hospitals. So, the State has a lot of difficulty in managing them with whatever their finances are. Being a part of this welfare government, they have to take care of all the areas along with people who live in our frontier areas. Their government has decided that in border area., a modern village will be built as people do not have a permanent residence in that area. So, they want to build modem villages under the project in that area which was adjacent to the international border. He stated that this type of project requires a lot of financial resources. He stated that whatever comes under central scheme was earmarked for a specific scheme. Further, their forest revenue has also reduced a lot due to the judgment of the Supreme Court. Their main finance comes from power sector, geology mining and water supply. Only a small amount of finance comes from their tax revenue. He stated that whatever little tax revenue that conies to them from ENA will go into GST, then Arunachal Pradesh will face even more difficulty in terms of finances, it was requested that ENA be allowed to remain under the control of States. 17.7 The Hon'ble Member fro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o, the revenue of the States will be affected in a big way. He further stated that if the Council was forming a GoM and it adversely affects the rights of the state, then also it will be difficult. He emphasized that harmonious relationship between Centre and the States was important. He strongly recommended that the earlier position on ENA should continue and it should be dealt under states subject. 17.10 The Hon'ble Member from Uttar Pradesh submitted that ENA has more than 95 percent of its content as alcohol and of these more than ninety percent was used for making liquor. The states have very limited resources anyway, given the limited sources of income. The nature of this was such that it was mostly used for making liquor. Since the GST came into existence, five things were excluded from it and alcohol was one of the excluded items. He submitted that in view of the limited source of Income of the states, it should be kept with the state itself, it should be kept out of GST because as its nature was that 95 percent content was alcoholic and it comes under the category of alcohol and it should remain with the state He submitted that the demand of the whole house was that it sh....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on ENA. 17.15 The Hon'ble Member from Tamil Nadu stated that that they are net importers of ENA and therefore, they lose if it was kept outside GST. However, in solidarity with fellow states and for state's rights, they would prefer that it was kept out of GST and left to states. 17.16 The Hon'ble Member from Karnataka stated that he concurs with other states that ENA should be with the States since the entry tax will not be applicable and therefore alcohol prices will soar up. Further it will affect the net sales and income of the state. He therefore supported that let ENA be with the States. 17.17 The Hon'ble Member from Chhattisgarh also stated that it supports that ENA be kept out of GST. 17.18 The Hon'ble Chairperson stated that in view of the comments of the States on the issue, this agenda may be deferred. Agenda Item 14: GST Revenue Augmentation 18.1 The Secretary informed the Council that this item was discussed and the Hon'ble Member from Punjab had mentioned that we should come back with the consolidated position in the next 3 to 6 months. Accordingly, he suggested that the Fitment Committee could be expanded to have more members to be part of it because this mat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....under categories B1/B3, and 1 case of TRAN-2 falling under the category B. For the nodal officers' cases, the committee had recommended that 16 cases falling under category A1 out of 43 cases merit acceptance and remaining 27 cases falling under category B1, B2, B3, B4, B8 were not recommended as no technical glitch was noticed by the GSTN in these cases of technical analysis. The Committee approved on merit 24 cases of TRAN-1/TRAN-2 including the 6 court cases, 1 migration case, 1 non-technical case and 16 nodal officers' cases subject to placing before the GST council. The ITGRC was of the view that they meet the requirement for Considering the cases and fall in the four walls, however, as the due date of 31.08.2020 was already Over, the same be placed before the GST council for their view and recommendations It was observed that the nodal officers had received these 16 cases falling in category A before 31.8.2020. (ii) The ITGRC had recommended that the past cases once decided by the ITGRC and approved by the GST Council shall not be reopened. 19.4 GSTN requested for clarity as to whether the cases still pending with nodal officers are to be taken up by GSTN for processing as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... The GST Council gave in-principle approval for opening up the portal for these 26 cases. The Minutes along with the list of the recommended 26 cases and 78 not recommended cases along with the detailed reasoning was placed before the GST Council Annexure -A, 1, 2 and 3 to the Agenda Item. 20.2 The Council took note of the decision/recommendations of the 13th Meeting of the ITGRC. Agenda Item 16- Review of revenue position under Goods and Service Tax 21.1 The Secretary introduced the Agenda Item and asked the Joint Secretary, DoR to give a presentation (Annexure- V) The Joint Secretary, DoR submitted monthly gross GST collections from October 2020 to April 2021 and stated that the GST revenue have seen a positive trend in last few months and reached ₹ 1.4 lakh crore by April 2021. He also submitted the figures of IGST collected, refunded and settled / appointment during the FY (2020-21). He also submitted the figures of Compensation Cess collected since implementation of GST w.e.f. 01.07.2017 till April 2021 and the compensation released. He submitted the State-wise details of gap between the protected revenue and the post settlement gross SGST revenue (including ad-hoc s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ust like last year, compensation may be transferred through back-to-back loan arrangement. He also requested that it was not proper to assume growth rate of revenues to be more than 6%. 22.6. Hon'ble Member from West Bengal stated that they did a study and found that for the period April 2020-January 2021, the revenue collection growth had been -3%. The assumption of Government of India was 7% growth but because of COVID pandemic the growth rate in revenue fell down to -3% and hence, the difference is 10%. As per the calculations done by West Bengal, the compensation needed for the States for the period April 2020 to January 2021 is ₹ 63,489 crore. He requested that they would be very eased if the amount of compensation to the State is given as a grant. Secondly, as against the Central Government's calculated borrowing of ₹ 1,58,267 crores, they have done their calculations and found that the gap to be funded through borrowing in 2021-22 will be ₹ 2,13,000 crores. The detailed calculations done by them would be sent to the Secretary to the Council. The Hon'ble Chairperson requested the Hon'ble Member from West Bengal to send their paper with the detailed calculat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ransition period of upto July 2022 for such period as may be required. He stated that for the sake of comparison the total amount would come close to ₹ 2.2 lakh crore as against ₹ 1 lakh crore estimated by the Government of India. 22.12. The Hon'ble Member from Goa stated that under Special Borrowing Scheme, Goa had got only ₹ 840 crores and requested for disbursement of the balance pending amount of around ₹ 840 crores. Just like the request of Sikkim would go to a GoM for decision, he reiterated that there would be avenues where smaller States like Goa may be permitted. 22.13. The Hon'ble Member from Chhattisgarh stated that there was a gap between the protected revenue for 2020-21 and the actual revenue. The system that worked went against the assurance given to all the States that there would be a 14% protected revenue assurance. For the FY 2021-22, Chhattisgarh's shortfall would be ₹ 3779.86 crores. He requested that the borrowings should be to that extent since the borrowings would not be a loan on Government of India and it would be serviced by the extended cess fund account. This must be protected and the States must be assured that they woul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....covered under Article 293 of the Constit0 and they also have to consult the RBI and his colleagues in Ministry of Finance. He would request the Expenditure Secretary to separately write to the States giving the exact amount they would be eligible for. He would look for consent from the Hon'ble Members before they go ahead in case RBI and others agree on the said borrowing program. He concluded by saying that he would initiate negotiations on ₹ 1.58 lakh Crores with his colleagues and also with RBI for a back-to-back borrowing. Agenda Item 18 - Information Agenda on constitution of two new GoMs 23.1 The Secretary introduced the Agenda Item and stated that it was decided in the 42nd meeting of the GST Council that certain issues that were discussed earlier should be referred to GoM Constituted for the purpose. One set of issues pertains to special composition scheme and capacity - base levy in certain evasion prone sectors along with other revenue augmentation measures like reverse charge on mentha oil. The second set of issues pertains to valuation of services provided in casinos, race courses and online gaming centres and issues related to these sectors. Accordingly, two G....