After slashing tax rates on about 90 essential commodities, including sanitary pads in its July meet, the 30th Goods and Services Tax (GST) Council meeting took place in New Delhi Friday. The Council during its September 28 meeting is expected to discuss strategies to help flood-ravaged Kerala and may levy a cess on account of the revenue losses in the state. The GST Council will also review if it would levy an extra cess on all goods nationwide for a defined period of time or only on SGST within Kerala.
Addressing the 30th GST Council meeting via video conference, Union Finance Minister Arun Jaitley said, "GST Council reviews revenue position; expectation that consuming states will benefit has borne out".
"It had been decided earlier that GST council secretary will visit revenue deficit states and analyse it. It was found that there's no revenue shortfall in consuming North-east states," Jaitley added.
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"Bihar imposed additional VAT in 2015-16 when tax reduced due to the prohibition of alcohol. Taxation inflated by 27% as compared to the previous year. Bihar benefited from this aberration," the finance minister said.
"We are making a 7 member group of ministers which will discuss the Kerala Cess proposal. This 7 member committee will have members of North East, hill and coastal states. Committee members will be announced soon," Jaitley said.
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Last week, Kerala Finance Minister Thomas Isaac met Finance Minister Arun Jaitley and said the GST Council will explore the possibility of an all-India cess to help flood-affected states like Kerala in times of sufferings and need.
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