The GST Council on Saturday decided to set up a Group of Ministers (GoM) to decide on the 1 per cent calamity cess by Andhra Pradesh on certain luxury goods to raise resources to mitigate natural disaster.
Andhra Pradesh Finance Minister Payyavula Keshav said that there was a consensus that a GoM be formed.
“The cess will be on luxury items and State specific levy,” Keshav said.
In September-October AP was hit was floods.
Also read: GST Council Meeting Highlights
“To give us a leverage to come back to normalcy, we have suggested a 1 per cent cess. There was a general consensus to set up GoM,” Keshav.
The GST law provides for levy of special taxes for a specified period to raise additional resources during any natural calamity or disaster.
Earlier in 2018, the GST council had decided to set up a GoM to look into a similar demand made by Kerala.
The GoM in January 2019, decided to approve levy of 1 per cent ‘calamity cess’ by Kerala for a period of two years to fund rehabilitation work in the State hit by floods. The goods and services, which will attract the 1 per cent cess, was decided by Kerala.
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Published on December 21, 2024
https://www.thehindubusinessline.com/news/national/gom-to-consider-1-calamity-cess-proposal-by-ap/article69012830.ece
