The Kerala government has decided to levy a cess called Kerala Flood Cess for the purposes of providing reconstruction, rehabilitation and compensation needs which had arisen due to the massive flood which occurred in the State of Kerala in the month of August, 2018, for a period of two years, with effect from 1st June 2019.

A. LEVY AND COLLECTION

  • Kerala Flood Cess shall be levied on intra-state supplies of goods or services or both, made by a taxable person to an unregistered person in respect of supplies specified in the table shown below.
  • Cess shall not be leviable on;

a) Supplies made by a taxable person who decided to opt for composition

b) Supplies of goods or services or both exempted by notifications issued under section 11 of the Kerala State Goods and Services Tax Act, 2017.

c) Supplies of goods or services or both made by a registered taxable person to another registered taxable person.

  • The cess shall be collected on the basis of value determined under section 15 of the Kerala State Goods and Services Tax Act, 2017 at such rate specified in the table below:
SN Category of supply Rate of cess
1 Goods taxable at the rate of 1.5% SGST 0.25%
2 Goods taxable at the rate of 6.0% SGST 1.00%
3 Goods taxable at the rate of 9.0% SGST 1.00%
4 Goods taxable at the rate of 14.0% SGST 1.00%
5 All services under SGST 1.00%
  • The cess collected shall be shown separately in the invoice and paid to the Government along with the return.

B. RETURNS

  • Every taxable person who is liable to pay the Kerala flood cess shall file a monthly return in Form No. KFC-A on or before the due date of filing of GSTR 3B.
  • The return shall be filed electronically through the official portal www.keralataxes.gov.in and e-payment shall be made along with such return. In order to e-file cess return and payment of cess, one time ‘user ID and password’ can be generated from the portal.
  • Outward supplies of goods or services attracting cess made to unregistered persons shall be mentioned in KFC-A and the same shall match with the corresponding details of outward supply of goods or services or both as per GSTR1.

DISCLAIMER: The views expressed in this article are strictly of the author. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation by the author. The author does not accept any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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Qualification: CA in Practice
Company: Nithin & Associates
Location: Kozhikode, Kerala, IN
Member Since: 26 Apr 2019 | Total Posts: 2

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2 Comments

  1. SUNIL KUMAR PATTUVAKKARAN says:

    Hi Nithin Prakash Sir, I am Sunil Kumar Pattuvakkaran,kannur, azhikode. Two years back worked in Calicut , in association with PPKK Associates, and UK& CO, CS firm, calicut.Kindly keep in touch.

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