Bihar Deputy Chief Minister Sushil Modi, who heads the seven-member group of ministers (GoM), said the panel would also seek comments from the Attorney General on the legality of levying a ‘disaster cess’ or a ‘disaster tax’ to help states hit by natural calamities.
Panel of Ministers on Monday said about levying calamity cess the NDRF fund was not sufficient to meet relief work expenses in the wake of natural calamities and decided to seek states’ views on whether a state-specific or a nationwide ‘disaster tax’ should be levied under the GST.
“The GoM has decided that the GST Council will prepare a questionnaire and send to states for response. Out of the terms of reference of the GoM, the council will draft 15-20 questions. For example, whether it (cess/tax) will be state specific or it should be levied throughout the country,” Modi told reporters.
Also, the discussion with states would be around what will be the mechanism of creation of the fund and disbursement in cases when it was decided to levy cess or tax specific to the state hit by a calamity or it would be a nationwide tax.
The NCCD collection has come down from Rs 6,450 crore in 201617 to Rs 3,660 crore in 2017-18.