The Kerala flood cess rules 2019 shall be implemented from 01st August 2019 onwards for two years i.e till July 2021.  As per the aforesaid Rules read with the amendments thereon, the Kerala flood cess (KFC) shall be imposed at the rate of 1% and/or 0.25% on the following local outward supplies (Intrastate outward supplies) made to B2C customers/Ultimate customers not having GST registration /unregistered persons, by the persons registered under the Kerala GST Act except for composition dealers of goods and services.

Local outward supply KFC Rate
(1) All goods attracting GST @ 3% 0.25%
(2) All goods attracting GST @ 12%, 18% and 28% 1%
(3) All services. 1%

Various Compliances under The Kerala flood cess rules 2019 are as follows:

1, The KFC shall be levied and collected separately on the taxable value of supplies (Taxable value of supply shall not include Discount, GST and GST compensation cess) made from 1st August 2019 onwards.

2, The CGST and KGST shall be levied and collected on the same taxable value on which Kerala Flood Cess imposed.

3,The KFC shall be shown separately in the invoice in addition to KGST and CGST.

4, The KFC so collected shall be paid to the Kerala Government on a monthly basis by filing separate E-Form KFC-A through the official portal ‘’ www.keralataxes.gov.in” on or before the due date of filing of GSTR-3B.

5, One-time user ID and password shall be generated from the portal  www.keralataxes.gov.in for paying the above cess and filing E-Form KFC-A.

6, The KFC once paid shall not be refunded.

The Kerala Flood Cess (KFC) is not applicable to the following type of outward supplies:

1, All the Supplies made by composition dealers of goods and services.

2, All the Supplies made between dealers registered under GST, So there would not arise any question on the credit of KFC paid on inward supplies.

3, All the Local outward supplies of goods attracting GST @ 5 %.

4, All the Local outward supplies of goods attracting GST @ 0.25 %.

5, All the Interstate outward supplies of Goods, Services and both.

6, All type of exempt outward supplies.

Disclaimer: All the above statements are my personal views derived from the analysis of the respective acts and rules. So, I will not be responsible to indemnify the readers of this article in any manner. So, the readers have to draw their conclusion based on the careful analysis of the relevant provisions of The Kerala Finance Bill 2019 read with The Kerala Flood Cess Rules, 2019 and amendments thereon.

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Company: Sajeesh M K & Co
Location: thrissur, Kerala, IN
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32 Comments

  1. ABDUL RAHMAN says:

    a taxable person received government contract , so here what is the treatment in kerala flood cess ?
    kerala flood cess applicable or not ?

  2. Shandeep says:

    When filing flood cess taxable value was entered in (To taxable person having GST registration in the state,not in) instead of (To unregistered
    persons)…cess already paid….is there any way rectify it..

  3. ARUN says:

    Doubt related to GST 3B Table 3.1 Cess portion. Is this related to Kerala Flood Cess that we collected during August 2019? I already submitted Cess amount to Kerala GST portal. Now GST 3B also asking Cess amount by e payment. (Can i leave Table 3.1 Cess portion in NIL?)

  4. Aiswarya Akshay says:

    Sir,

    We have inadvertently file the KFC -A as nil return.But actually the cess amount is liable to pay.In GSTR 1 we have filed supply of goods or services(B2C) but wrongly filed the KFC -A return as nil .
    Whether any option to revise the return for further months or not.
    Please clarify as early as possible.

  5. sanjay says:

    Related to Airline business…

    If an ticket is issued on 01st Aug (10000Rs) & gets cancelled by 10th Aug (-10000Rs), Can we file an Net off return (100-100), as the website shows it should be filed along with the return. i understand KFC tax is non refundable across the month.
    Kindly specify

  6. Anish S says:

    Sir,
    We have GST registration. But our bank is imposing KFC on every service charges. Eg. If we take a dd or send an NEFT standard charges may apply and on that charges they are imposing 1% KFC.Wheather it is correct or not?

  7. SURESH KUMAR says:

    HI, Good Day.

    Could you explain if I am paying 5% GST to the builder for an under construction flat, is it necessary to pay Cess ? Because builder insisting me to pay Cess 1% on compound basis.

  8. Aswin says:

    Dear Sir,
    As per your above communication KFC is not applicable for Interstate outward supplies of Goods, Services, Is this true ?? Pls clarify

  9. Naveen S says:

    Sir,

    As per your above communication – Taxable value of supply to calculate flood cess shall not include Discount.Is this true ?? Pls clarify

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