The Government has issued notification for 1% Kerala cess on intra-state (CGST and SGST) sales w.e.f. June 01,2019 and notified Kerala Flood Cess Rules, 2019.
Applicability of Cess –
The cess is applicable only in case the transaction is B2C i.e. the customer is unregistered as per GST. Cess will not be applied to goods and services supplied under composition scheme.
Rate of Cess –
| Sr. No. | Description | Rate of cess |
| 1 | Goods fixed at 0.125% (precious and semi-precious stones) | NIL |
| 2 | Goods fixed at 2.5% (merit-rated goods – food, medicines, etc.) | NIL |
| 3 | Goods fixed at 1.5% (gold, etc.) | 0.25% |
| 4 | Services fixed at 2.5% (merit-rated services – transportation, restaurant, etc.) | 1% |
| 5 | Goods and services at 6%,9% and 14% | 1% |
As per Kerala Finance Bill 2019 -KFC shall be levied on the basis of value determined under section 15 of the Kerala SGST Act, 2017. As per Kerala SGST Act -the value of supply shall include:
“Any taxes, duties, cesses, fees and charges levied under any law from time being in force………if charged separately by the supplier”
Thus in case of Kerala, Value of supply shall include Cess also and CGST & SGST will be levied on value including cess.
Disclosure in Tax Invoice –
Cess amount needs to be shown separately in the invoice.
Return filing –
> A monthly return in Form No. KFC-A is required to be filed.
> The return is required to be filed through www.keralataxes.gov.in.
> Every taxable person liable to pay the Kerala Flood Cess shall file a monthly return in Form No. KFC-A on or before the due date for filing of GSTR-3B return.
> Cess needs to paid over to the Government along with the return.
> In order to e-file cess return and payment of cess, one time ‘user ID and password’ shall be generated from the portal.
The details of outward supplies of goods or services or both, attracting the Kerala Flood Cess made to unregistered persons shall be mentioned in the return.
>There shall be no refund of the Kerala Flood Cess paid along with the returns.
Below is the format of Form No. KFC – A
FORM No. KFC-A
[See Rule 3]
KERALA FLOOD CESS RULES, 2019
RETURN FOR KERALA FLOOD CESS
Statement Ref:…………………………..
Date. …………………………
GST Circle: ………………………………
| GSTIN | |
| LEGAL NAME OF BUSINESS | |
| TRADE NAME | |
| CONSTITUTION OF BUSINESS | |
| TAXPAYER TYPE | |
| COMPOSITION OPTED | NO |
| RETURN PERIOD | |
| JURISDICTION | STATE/CENTRE |
PARTICULARS OF KERALA FLOOD CESS PAYABLE
| SI No. | Category of Supply | Value of Intra State B2C Supply | Rate of Kerala Flood Cess on Value of Supply | Kerala Flood Cess Payable |
| 1. | Goods taxable at the rate of 1.5% SGST | 0.25% | ||
| 2. | Goods taxable at the rate of 6% SGST | 1% | ||
| 3. | Goods taxable at the rate of 9% SGST | 1% | ||
| 4. | Goods taxable at the rate of 14% SGST | 1% | ||
| 5. | All Services under SGST | 1% | ||
|
Total |
Authorized Signatory
Author Bio
Dear Sir,
Is Taxable service @5% is exempted from KFC?
Rate of kerala flood cess of Supplies of goods or services for which tax rate is fixed at 2.5 % by notification issued under sub-section(1) of section 9 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) is Nil rated.
I request to TaxGuru Team either to make correction in this article or delete. No one should be misinterpreted.
Dear All,
With respect to above, there is confusion regarding the accounting treatment.As per Kerala Finance Bill 2019 -KFC shall be levied on the basis of value determined under section 15 of the Kerala SGST Act, 2017. As per Kerala SGST Act -the value of supply shall include:
“Any taxes, duties, cesses, fees and charges levied under any law from time being in force……….if charged separately by the supplier”
Thus in case of Kerala, Value of supply shall include Cess also and CGST & SGST will be levied on value including cess.
Please ignore accounting entry mentioned in above article
Here Value of Supply for Cess computation is Rs=100 and cess of 1% is collected.But the TV for GST Act is Rs.101(100+1).As per Sec 15 of CGST Act , TV includes any taxes and duties levied under any act other than GST .That is TV for GST is Rs.101. If GST is 18%, Rs.18.18(101 x 18%) has to be collected as GST, it was before Rs.18(100×18%).Please clarify.