Andhra Pradesh Finance Minister Payyavula Keshav requests GST Council to impose flood cess 

Andhra Pradesh Finance Minister requests GST Council for 1% flood cess, exemptions for research services, and transparency in IGST settlement.

Andhra Pradesh Finance Minister Payyavula Keshav requested the 55th GST Council in its meeting held at Jaisalmer on Saturday (December 21, 2024) to let the Andhra Pradesh Government impose a 1% flood cess on goods in the above 5% tax slab transported through the State to enable it to mobilise additional funds for distributing to those affected by the recent flash floods. 

He noted that the proposed cess would not impact the poor and the middle class but help fund the relief and rehabilitation measures in flood-affected areas, and the Kerala Government had collected a similar cess during the 2018 floods.

He sought GST exemption and reduction on research services conducted by the government and private institutions to promote innovation and wanted the GST on fortified rice provided to the poor under PDS to be pruned. 

Further, Mr. Keshav suggested to the GST Council to ensure transparency in the Integrated GST settlement process and to make data accessible to the States, exempt small businesses and composition taxpayers from the reverse charge mechanism on rents and to simplify GST registration using technology to enhance ease of doing business.

He thanked Union Finance Minister Nirmala Sitharaman for constituting a subcommittee to review the suggestions made by the Finance Ministers of States and other stakeholders. Andhra Pradesh Government Principal Secretary (Finance) Piyush Kumar and Commercial Taxes Chief Commissioner Babu accompanied the Minister.