New Delhi, Jan 7 (KNN) A ministerial panel under the GST Council approved levy of 1% ‘calamity cess ’ for Kerala to fund rehabilitation work in the state hit by floods.

Bihar Deputy Chief Minister, Sushil Modi Modi, heads the ministerial panel said that Kerala can levy the cess for up to two years.

The goods and services, which will attract the 1% cess, would be decided by Kerala, Modi said.

He added that if any other state wants to levy the ‘calamity cess’ it has to approach the GST Council for approval.

Separately, another ministerial panel under Minister of State for Finance Shiv Pratap Shukla, on giving relief to MSMEs under the GST, deliberated on the exemption threshold for such businesses.

Currently, businesses with turnover of up to Rs.20 lakh are exempt from the Goods and Services Tax (GST).

Besides, the Group of Ministers (GoM) under Modi has also suggested to the GST Council to allow additional borrowing over the permitted limit by states hit by natural calamity.

Modi told reporters after the meeting of the GoM that the Centre and states will together decide on increasing the borrowing limit under FRBM for funding natural calamity.