The GST council will soon take some important decision on the flood relief for the Kerala state as Kerala’s Finance Minister TM Thomas Isaac is in round talk with the government to let them impose extra cess for the recovery of losses due to the natural calamity.
This will be the first time when a state will receive additional taxes through increased imposition. The final decision will be taken by the GST council as the finance ministry official stated that, “The issue is what can be considered a special rate or cess?, The law has provisions for both. Now it is up to the GST Council to decide.”
The flood hit Kerala is in acute demand of additional resources as per by the reports and it is need of the hour for the government to act upon the pleading as soon as possible.
Kerala’s Finance Minister TM Thomas Isaac mentioned that he will ask GST council for this special amendment which includes increased 10 percent Cess on the products.
After the Constitutional amendment, sub-section (4) (F) of newly introduced article 279 A prescribes “Any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster.”
Many of the tax experts have been saying the restructuring of GST norms and regulations will not be proper but still, there may be some changes for a limited time period.
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Many of the ministers have stated that the Cess may be the solution for the relief granted to Kerala flood. However, the extra cess may impact tourism and travels but in the meantime, it will also provide some to the disaster victims.
