Imposition of calamity tax with GST not advisable: CAIT

Traders' body CAIT Tuesday said levy of any cess or tax with the Goods and Services Tax (GST) is not advisable as it will contradict the principle of one tax, one nation.

The Confederation of All India Traders (CAIT) in a statement said that any move to impose calamity tax with the GST will set a wrong precedent in the country.

The GST Council last week set up a seven-member ministerial panel under Bihar Deputy Chief Minister Sushil Modi to examine the legality of imposing a new tax on certain goods and services to raise resources for natural calamity-hit states like Kerala.

The CAIT said that at a time when the country is moving towards rationalisation of tax structure, any move to impose cess/tax in any form will jeopardise the basic fundamental and spirit of the GST.

"The levy of any cess or tax terming as calamity tax with GST is not advisable as it will runs contrary to the principle of One Tax-One Nation," it said.

The move would increase problems of both the government and traders as they would have to make necessary changes in their software system.

It has urged the finance minister, GST Council to consider some other mechanisms to aid Kerala.