Vijayawada: The 55th GST Council led by union finance minister Nirmala Sitaraman will constitute a Group of Ministers (GoM) to consider permitting states to impose a calamity cess of one per cent on luxury goods under the Goods and Services Tax (GST) framework. The levy is aimed at providing financial relief to states in the aftermath of natural calamities.
Andhra Pradesh finance minister Payyavula Keshav came up with the proposal of levying one per cent calamity cess on luxury goods, attracting over 5 per cent GST, being transported in a state. He recalled a precedent in Kerala when one per cent cess had been levied for flood rehabilitation in 2019.
Later, speaking to media, Nirmala Sitaraman disclosed that AP’s move, along with other states like Uttar Pradesh, West Bengal and Telangana, on levying the calamity cess received unanimous support in the council.
These states expressed their willingness to take part in the GoM. They assured that the group would deliberate on various aspects, including the nomenclature and applicability of this cess for different calamities.
When Payyavula Keshav raised the matter, he received accolades from his counterparts from other states.
The AP finance minister thanked Nirmala Sitaraman for agreeing to set up the GoM.
