GST Council to Form GoM on Andhra's Calamity Cess Demand
By Rediff Money Desk, Jaisalmer Dec 21, 2024 18:57
The GST Council will form a group of ministers to examine Andhra Pradesh's request for a 1% calamity cess on luxury goods to recover from recent floods. The cess is intended to help the state return to normalcy.

Photograph: ANI Photo.
Jaisalmer, Dec 21 (PTI) The GST Council has decided to set up a GoM (group of ministers) to look into the demand for a 1 per cent calamity cess on certain luxury goods by Andhra Pradesh 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, Andhra Pradesh was hit by floods.
"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 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.
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, Andhra Pradesh was hit by floods.
"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 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.
Source: PTI
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