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GoM on calamity tax under GST to meet on Monday

Press Trust of India  |  New Delhi 

The ministerial panel under Sushil will meet on October 15 to examine the modalities for revenue mobilisation by levying additional under the GST in case of natural calamities.

"The on levying of or cess for funding natural calamity or disaster would meet on October 15," an official told

Last month, had mooted a plan for imposition of a cess on goods and services sold within the state to help it tide over the losses suffered due to the recent flood before the

Following deliberations, the Council decided to constitute a seven-member Group of Ministers under to look into the possibility of imposing a separate under the GST to help states hit by natural calamaties and also suggesting scenarios when this tax should be levied.

The panel would submit its report to the by October 31.

Himanta Biswa Sarma, Finance Minister and are part of the group.

Other members of the are Odisha Finance and Sashi Bhusan Behera, Maharashtra Finance and and

The panel would look into five issues flagged by the Council, including whether the new tax should be levied only in the state concerned or be an all-levy, and whether it should be on specified luxury or sin goods only.

Besides, the grouping would look at whether (NDRF)/ (SRF) mechanism is sufficient to deal with calamities as well as define circumstances where the 'calamity tax' can be imposed.

Other issues such as the legal aspect of imposition of such a tax within the GST would also be looked at.

The imposition of cess under the GST was hanging fire for long as a case on constitutional validity of (Compensation to States) Act was pending in

Last week, the apex court upheld the constitutional validity of the levy of 'Compensation to States' Cess saying it is an increment to GST which is permissible under the law.

Indirect Tax Partner and Leader said the judgement puts the ambiguity around legislative competence around levy of GST compensation cess to rest and has held that cess could also be applied in situations where Clean Energy Cess was already paid on coal.

"The timing of this decision is important, as the Government is now contemplating imposition of a special Cess to compensate the States in case of natural calamities," Jain said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, October 09 2018. 17:55 IST
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