1. Kerala to levy calamity cess up to 1% over and above GST, for the purpose of providing reconstruction, rehabilitation and compensation needs which had arisen due to massive floods which occurred in the State during August, 2018
2. The Power to impose such a levy flows from Article 279(A) (4)(F) of the constitution
3. Rates of Kerala Cess
4. The Cess will be levied for two years
5. The Cess will be levied only on the value of supplies made within the state by registered dealers, (intra state supplies only) to unregistered persons which means the levy will be only on retail transactions(B2C)
6. Thus, no credit is allowed on the cess paid as the same is levied on transactions made by taxable persons to the unregistered end consumers. B2B transactions are not covered in Kerala Flood cess.
7. The cess shall be paid on the taxable value of supplies under section 15 of CGST Act, made by the taxable person to the unregistered person.
8. No refund of Kerala Flood Cess is to be allowed
9. Small dealers who have availed the Composition Scheme, that allows taxpayers to pay a flat GST without the facility to avail input tax credit, are excluded from the levy.
10. No cess on items that are taxed at 5 percent or below, except gold, silver and platinum ornaments. However, a cess of 0.25 percent will be levied on gold, silver, platinum ornaments, precious stones, imitation jewellery, diamonds, among other items, that fall in the fifth schedule of GST rates.
11. Kerala Flood Cess is To be levied on Intra-State B2C Supplies
12. Separate monthly return in form KFC-A to be filed along with GSTR-3B
13. The return to be filed on www.keralataxes.gov.in
14. In order to e-file cess return and payment of cess, one time user Id and password to be generated from the portal
15. The Kerala Flood Cess shall come into force w.e.f 1st July, 2019
16. The Cess will be applicable for a period of two years i.e till 30.06.2021