A ministerial panel on levying calamity cess on Monday said the NDRF fund was not sufficient to meet relief work expenses in the wake of natural calamities and decided to seek states’ views on whether a state-specific or a nationwide “disaster tax” should be levied under the GST.

Bihar deputy chief minister Sushil Modi, who heads the seven-member group of ministers (GoM), said the panel would also seek comments from the attorney-general on the legality of levying a “disaster cess” or a “disaster tax” to help states hit by natural calamities.

“The GoM has decided that the GST Council will prepare a questionnaire and send to the states for response... Of the terms of reference of the GoM, the council will draft 15-20 questions. For example, whether it (cess/tax) will be state specific or it should be levied throughout the country,” Modi told reporters here.

Also, the discussion with states would be around what will be the mechanism of the creation of the fund and disbursement.

Modi said in the last 4-5 years, the kitty of the National Calamity Contingent Duty has been declining, especially after the GST.

“The mechanism of funding states is not sufficient in case of natural calamities... Already, there is a section in the constitution amendment bill itself which says the GST Council shall make recommendations to the Union and the states on any special rates or rate for a specified period to raise resources at the time of natural disaster,” he said.

The NCCD collection has come down to Rs 3,660 crore in 2017-18 from Rs 6,450 crore in 2016–17.

The NCCD is a major contributor to the National Disaster Response Fund (NDRF) and as the duty collection is coming down, the additional requirement of funds from NDRF is being provided from the central budget.