Kerala Flood Additional Cess
Enforcement of additional cess on goods and services is done to raise funds to rebuild the state after the devastating floods of 2018.
Additional Flood cess will come into effect from 01/08/2019. Initially implementation was decided as 01/06/2019 which was deferred later to 01/07/2019 and than to 01/08/2019.
Update on 29th May 2019
Today a new notification came under Bulletin No. 659 under 14th Kerala assembly, the date for implementation of KFC has been extended to 1st July 2019 and GST will be charged on Taxable Value itself that is excluding the KFC. Hence in the above example GST will be charged on Rs.100 and not on Rs.101 as shown above. This was before this clarification. Link for the bulletin is – http://www.niyamasabha.org/codes/14kla/bulletins/659.pdf
Key Highlights for the same are as follows:-
Rate of cess to be charged on the Taxable Value of Supply and not on GST amount.
Every taxable personn 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, specified under rule 61 of the Kerala Goods and Services Tax Rules, 2017.
The return shall be filed electronically through the official portal ‘www.keralataxes .gov.in’ and e-payment of Kerala Flood Cess due shall be made along with such return.
Further as per the provisions of Section 15, Kerala cess should be included in the value of supply for the purpose of levy of CGST and SGST.
|Value of Supply||Rs.100.00|
|Add: KFC @1%||Rs. 1.00|
|Add: CGST@9%||Rs. 9.09|
|Add: SGST@9%||Rs. 9.09|
As of now as per the reading of Notification and Sec 15, it comes out that GST need to be discharged on Rs.101. Clarity for it is required whether it need to be discharged on Rs.100 and the same has been asked from Commercial Tax Department and will be shared when received.