A Step Forward: GST Council's Calamity Cess Proposal

The Goods and Services Tax (GST) Council has agreed to form a Group of Ministers (GoM) to consider Andhra Pradesh's proposal for a 1% calamity cess on high-end goods for relief during natural calamities. The seven-member GoM will look into the constitutional and legal viability of permitting states to impose a special cess for revenue mobilization in the event of natural calamities. This was a decision following Andhra Pradesh experiencing floods in September-October. The GoM will also examine the mechanism for imposing such a cess and look at suggestions put forth by other states. Finance Minister Nirmala Sitharaman added that there is no established process currently for determining state-specific levies, calling for a detailed scrutiny of all connected issues.

 

Source: Press Trust of India