The ministerial panel of the GST Council, under Bihar Deputy Chief Minister Sushil Modi, has approved the levy of 1% calamity cess by the Kerala government for a period of two years in order to fund rehabilitation work in the state which was hit by floods last year.
Sushil Modi said that the GST, which would be decided by the state will attract the 1% Cess. He also said that any other states wanting to implement calamity cess has to reach out to the GST Council for approval.
Modi, while talking to the reporters after the GoM meeting, said “Kerala had asked the GST Council for levying cess to fund rehabilitation work. The GoM has recommended to the Council that Kerala is allowed to levy 1% cess for two years. Also, the Centre and states will together decide on increasing the borrowing limit under FRBM for funding natural calamity.”
According to the reports another ministerial panel under Minister of State for Finance Shiv Pratap Shukla, in order to provide relief to MSMEs, suggested to expand the exemption threshold businesses. The panel also advised allowing businesses with a turnover of up to Rs 1.5 crore to avail composition scheme.
The GST council, which is scheduled to meet on January 10, will discuss on the suggestion given by the ministerial panel.
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