Andhra Pradesh demands for 1% calamity cess, GST Council to set up GoM
The GST Council has decided to set up a group of ministers (GoM) to look into the demand for a 1 percent calamity cess on certain luxury goods by Andhra Pradesh to raise resources to mitigate natural disaster.
"The cess will be on luxury items and state specific levy," Andhra Pradesh Finance Minister Payyavula Keshav said.
In September-October, Andhra Pradesh was hit by floods.
"To give us a leverage to come back to normalcy, we have suggested a 1 percent cess. There was a general consensus to set up GoM," Keshav said.
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 similar demand made by Kerala.
The GoM in January 2019 decided to approve the 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 that faced the 1 per cent cess were decided by Kerala.
