Kerala Flood Cess

Kerala Flood Cess

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Kerala Flood Cess

We all are very well aware of the massive flood that had tremendously affected the State of Kerala in the month of August, 2018. With a view to reconstruct, rehabilitate and compensate the needs so arisen due to the flood, the Kerala State Government has decided to levy a Kerala flood cess on the value of supply of goods or services or both.

Vide clause 14 of the Kerala Finance Bill, 2019, the Kerala State Government introduced the levy of ‘Kerala Flood Cess’ and vide notification no. G.O. (P) No. 79/2019/TAXES dated 25th May 2019 the effective date of the same was introduced.

The key highlight of ‘Kerala Flood Cess’ are listed hereunder:

  1. Cess so levied and collected by the State of Kerala will be known ‘Kerala Flood Cess’.
  2. Cess would be levied on ‘intra-state’ supplies of goods or services or both by a taxable person to unregistered dealers.
  3. 1st June, 2019 is the effective date from which Kerala Flood Cess is required to be levied and collected.
  4. Cess shall remain effective for the period of 2 years from 1st June, 2019.
  5. Rate of ‘Kerala Flood Cess’ are as under:
Rate of Kerala Flood CessDescription

1%

Intra-state supplies of all the services

1%

Intra-state supplies of goods attracting 6% SGST, 9% SGST or 14% SGST

0.25%

Gold and silver on which 1.5% SGST is levied.

6. Exemption from ‘Kerala Flood Cess,’ i.e. Cess shall not apply to the following:

    • Supplies undertook by a composition scheme taxpayer.
    • Supplies of goods or services or both which are exempted or NIL rated under the Kerala GST Act.
    • Supplies of goods or services or both by a registered person to another registered person.
    • Goods which attracts 0.125% SGST, i.e. diamonds and precious stones etc.
    • Goods which attracts 2.5% SGST.

7. Payment of cess is to be done to the Government along with the details of supplies made in the monthly returns in FORM KFC-A. Monthly return in FORM KFC-A is to be filed electronically through the official portal and payment of cess needs to be made along with the return.

8. Monthly return in FORM KFC-A is to be filed on or before the due date of filing of return in FORM GSTR-3B of every month.

9. Kerala Flood Cess needs to be reflected separately in the invoice issued for supply of goods or services or both.

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