The GST Council, the highest decision-making body of the Goods and Services Tax regime, is considering to levy Calamity Tax, a special tax or cess to raise additional resources aimed at the cost of reconstruction in Kerala aftermath of floods.
After the 30th meeting of GST Council, finance minister Arun Jaitly said that they have decided to set up seven member Group of Ministers to consider this proposal. Fearing that this would set precedence, Jaitly said that they formed a GoM to discuss the issue in details.
The Council also reviewed revenue trends and deficit of states, he said, adding state deficit this year is 13 per cent and may reduce further as consumption picks up. GST collections in many North-east states is above expectation, he added.