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 to levy the Kerala Flood Cess (‘Cess’) w.e.f. 1st June 2019 on the value of supply of goods or services or both.
Highlights of the Kerala Flood Cess are discussed as under:
> Kerala Flood Cess shall remain effective for the period of 2 years from 1 June 2019
> Kerala Flood Cess will be levied on intra-state (within the state) supply of goods or services or both by a taxable person to unregistered dealers (intra-state B2C supplies)
> Kerala Flood Cess will be levied on the value of goods or services at the rates prescribed below (for detailed schedule – kindly refer clause 14(2) of the extract of the Kerala Finance Bill, 2019, attached herewith):
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- 1% of the value of intra-state supply of all services;
- 1% of the value of intra-state supply of goods which attract 6% SGST or 9% SGST or 14% SGST;
- 25% of the value of intra-state supply of goods which attract 1.5% of SGST (i.e., goods falling under Schedule V including gold, silver and platinum ornaments)
> Kerala Flood Cess shall not apply to:
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- Supplies made by a composition taxpayer;
- Goods attracting 0.125% SGST (diamonds and precious stones etc.)
- Supply of goods or services or both exempted/ Nil rated under the Kerala GST Act;
- Supply of goods or services or both made by a registered taxpayer to another registered taxpayer. i.e., B2B supply of goods or services.
- Goods attracting 2.5% SGST
> Kerala Flood Cess shall be shown separately in the invoice issued for supply of goods or services
> Kerala Flood Cess shall be paid to the Government along with the details of supplies made in the monthly return in Form KFC-A. Such return is required to be filed on or before the due date of filing of GSTR-3B of every month. The return shall be filed electronically through the official portal and e-payment of cess shall be made along with such return.
> The details of outward supply reported in such return shall match with the corresponding details of outward supply as per GSTR-1.
> There shall be no mechanism to claim a refund of Cess paid with the returns filed.
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