The ministerial panel under Bihar deputy chief minister Sushil Modi on Sunday approved levy of 1 percent 'calamity cess' by Kerala for a period of two years to fund rehabilitation work in the state hit by floods.

The goods and services, which will attract the 1 percent cess, would be decided by Kerala, Modi said, adding 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 goods and services tax, 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).

The GST Council in its meeting on January 10 will discuss the recommendations of the two ministerial panels.