Question : GST Cess for Rehabilitation

(a) Whether the Government of Kerala has sought a Cess on Goods and Services Tax (GST) to meet the flood situation in the State;

(b) If so, whether the GST Council has approved the request and if so, the estimated amount likely to be generated through the Cess;

(c) If not, the current status of the request and the reasons for the delay in this regard;

(d) Whether the GST Council has decided to set up a seven member Committee to suggest a plan for imposition of additional tax for financing rehabilitation after natural calamities and if so, the details thereof; and

(e) Whether there were many views that came from the States to decide on GST Cess and if so, the details thereof?

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI SHIV PRATAP SHUKLA)


(a) to (e): Kerala government has proposed to raise funds by imposing cess on sale of goods and services under GST by the state government to meet the flood situation in the State. Accordingly, the matter has been discussed in 30th GST council meeting held on 28th September, 2018. As per recommendation of GST Council a Group of Ministers (GoM) has been constituted to examine modalities for revenue mobilization for natural calamities and disasters. Shri Sushil Kumar Modi, Hon’ble Deputy Chief Minister, Government of Bihar is the Convener and Finance Ministers of States of Assam, Kerala, Maharashtra, Odisha, Punjab and Uttarakhand are Member of this GoM. As per discussion/deliberation of GoM on 15.10.2018, a set of questionnaire has been prepared and sent to all States seeking views/suggestions on this issue with a view to decide a holistic course of action for mobilization of additional revenue to help the State in case of natural calamity and disaster in GST regime. Representatives of States expressed their views during the meeting of GOM. Views of States have been sought on certain specific issues. So far, Gujarat and Karnataka have sent their views formally.