Calamity tax under GST: Panel gives states 3 options to raise extra funds

While relief and rehabilitation are covered under existing funds, the new levy will cover reconstruction

A panel, headed by Bihar Deputy Chief Minister Sushil Modi, on Monday put on table three options to raise additional funds under the goods and services tax (GST) to help Kerala and other states in their post-disaster relief and rehabilitation work.

The levy could either be a state-specific tax levied as state GST, or there could be a supplementary disaster response fund, parallel to the existing national disaster response fund (NDRF). As a third option, the group of ministers (GoM) would consider strengthening the existing NDRF.

The GoM concluded its first meeting on Monday. It will submit its report in