New Delhi, Sep 29 (KNN) Finance Minister Arun Jaitley said that a Group of Minister (GOM) comprising seven members will be set up soon to examine the legality of imposing a new tax on certain goods and services to raise resources for natural calamity-hit states like Kerala.

The finance minister said that the panel has discussed the proposal from Kerala to levy Calamity Tax or special tax.

This is necessary to bump up additional resources and be able to meet the cost required for the reconstruction of the southern state, he said.

Jaitley explained that it is necessary to form a GoM to give suggestions on the matter. 

He also stressed on the fact that an immediate decision should not arise from the "spur of the moment".

Adding to the statement he said that a long-term solution is needed in case another such event of natural disaster arises in future.

The panel, headed by Union Finance Minister Arun Jaitley and comprising representatives of all states and UT, also took stock of the shortfall in tax mop-up by majority of the states under the new indirect tax regime.