Suresh Khanna to lead GoM on natural calamity cess

The GST Council has constituted a group of ministers (GoM) to recommend uniform policies for imposition of special cess in the case of natural disasters/calamities.

The GoM will examine the Constitutional and legal feasibility for levy of a special cess by states for revenue mobilisation in the case of natural calamity.

Uttar Pradesh minister for finance Suresh Khanna will lead the GoM as its convenor. The finance ministers of Assam, Chhattisgarh, Gujarat, Kerala, Uttarakhand and West Bengal are members of the GoM.

The GoM will also examine and identify the framework to be used to classify an event as a natural calamity for the purpose of levying such special cess, examine whether the special cess should be restricted to some specific sectors. Other terms of reference of the GoM include whether the special cess should be levied on B2B supplies or B2C supplies only or both. The GoM has been asked to examine the rate structure, time and duration for which the cess should be levied. It will also examine whether levy of cess on SGST for special purpose will be in consonance of the objectives of the GST Act particularly One Nation One Tax. The GoM will suggest whether any alternate mechanism can be devised for helping the states in case of natural disasters without altering the basic structure of the GST.