Avalara > Blog > Goods and Services Tax > Finance Ministry not considering calamity cess on GST

Finance Ministry not considering calamity cess on GST

  • Jun 5, 2020 | Divita S Gupta

Unlike previous reports, the Finance Ministry is not considering the imposition of a calamity cess on GST as businesses are grappling with low sales and declining demand during this time. Previous reports have stated that the Centre was considering the imposition of a calamity cess similar to the flood cess imposed by the state of Kerala last year. Ministry sources have stated that imposing a calamity cess in the time of the pandemic would prove to be counterproductive as sales are already at low volume and the industry is facing a deep crisis. A calamity cess at such a time will only dampen consumer sentiment and further worsen market conditions.


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Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.