Kerala Flood Cess under GST
Key Features of Kerala Flood Cess
Relevant Notifications for Kerala Flood Cess & GST
In terms of decisions of GST council 30th meeting held on 28th September 2018, Kerala state government has issued the notifications number G.O.(P) No.79/2019/TAXES and G.O.(P) No.80/2019/TAXES dated 25th May 2019 (Kerala Flood Cess Rules 2019) to levy the Kerala Flood Cess (‘Cess’) .
[ As per clause 14 of the Kerala Finance Bill, 2019 (Bill No.185 of the fourteenth Kerala Legislative Assembly),, there shall be levied a cess called the Kerala Flood Cess on such intra-State supplies of goods or services or both made by a taxable person as provided in section 9 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) for the purposes of providing reconstruction, rehabilitation and compensation needs which had arisen due to the massive flood that occurred in the State of Kerala in the month of August, 2018, for a period of two years,: with effect from the date notified by the Government in the official Gazette. Now, the Government have decided to levy the Kerala Flood Cess with effect from the 1st day of June, 2019. ]
Effective Date of Kerala Flood Cess
The Kerala government has decided to levy a cess called Kerala Flood Cess for the purposes of providing reconstruction, rehabilitation and compensation needs which had arisen due to the massive flood which occurred in the State of Kerala in the month of August, 2018, for a period of two years, with effect from 1st July 2019. [ Kerala Flood Cess levy deferred to 1st July 2019 ]
Who has to pay Kerala Flood Cess
LEVY AND COLLECTION
- Kerala Flood Cess shall be levied on intra-state supplies of goods or services or both, made by a taxable person to an unregistered person (intra state B2C) in respect of supplies specified in the table shown below.
Who is not required to pay Kerala Flood Cess
- Kerala Flood Cess shall not be leviable on;
a) Supplies made by a taxable person who decided to opt for composition
b) Supplies of goods or services or both exempted by notifications (Nil Rated /Exempted ) issued under section 11 of the Kerala State Goods and Services Tax Act, 2017.
c) Supplies of goods or services or both made by a registered taxable person to another registered taxable person.
d) Goods attracting 0.125% SGST (diamonds and precious stones etc.)
Valuation for Kerala Flood Cess
- The cess shall be collected on the basis of value determined under section 15 of the Kerala State Goods and Services Tax Act, 2017 at such rate specified in the table below:
Rates of Kerala Flood Cess
|SN||Category of supply||Rate of cess based on |
the value of
|1||Goods taxable at the rate of 1.5% SGST||0.25%|
|2||Goods taxable at the rate of 6.0% SGST||1.00%|
|3||Goods taxable at the rate of 9.0% SGST||1.00%|
|4||Goods taxable at the rate of 14.0% SGST||1.00%|
|5||All services under SGST||1.00%|
Invoice for Kerala Flood Cess
The cess collected shall be shown separately in the invoice and paid to the Government along with the return.
Returns forKerala Flood Cess
- Every taxable person who is liable to pay the Kerala flood cess shall file a monthly return in Form No. KFC-A on or before the due date of filing of GSTR 3B.
- The return shall be filed electronically through the official portal www.keralataxes.gov.in and e-payment shall be made along with such return. In order to e-file cess return and payment of cess, one time ‘user ID and password’ can be generated from the portal.
- Outward supplies of goods or services attracting cess made to unregistered persons shall be mentioned in KFC-A and the same shall match with the corresponding details of outward supply of goods or services or both as per GSTR1.
Refund of Kerala Flood Cess
There shall be no mechanism to claim a refund of Cess paid with the returns filed.