Press Release
The GST Council, during its 30th meeting held on 28 September 2018, deliberated on the proposal of the State of Kerala to levy a cess on State GST for funding rehabilitation and reconstruction work following severe floods. After detailed discussion, the Council decided to constitute a seven-member Group of Ministers (GoM) to examine the issue of revenue mobilisation in the event of natural calamities and disasters in a comprehensive manner. Accordingly, the Union Finance Minister approved the formation of the GoM on the same day to study the modalities for raising additional resources during such emergencies, while ensuring consistency with the GST framework. The GoM is to be convened by the Deputy Chief Minister of Bihar and includes Finance Ministers from Assam, Kerala, Maharashtra, Odisha, Punjab, and Uttarakhand, reflecting a broad representation of States. The Group has been tasked with examining various options and mechanisms for generating funds to meet disaster-related expenditure and to submit its report to the GST Council by 31 October 2018. The decision underscores the Council’s commitment to cooperative federalism and its effort to balance fiscal flexibility for States with the need to maintain the integrity and uniformity of the GST system, particularly in responding to extraordinary situations such as large-scale natural disasters.
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