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.