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The Kerala State Goods and Services Tax Department has issued guidelines for the refund of the Kerala Flood Cess, following an amendment to the Kerala Flood Cess Rules 2019. As per Notification S.R.O No. 1284/2023, taxpayers can now apply for refunds using Form KFC RFD-1, which must be submitted manually within two years from the end of the financial year in which the supply was made, or two years from the date of the amendment notification, whichever is later.

Taxpayers must submit the filled-out Form KFC RFD-1 along with the required documentation to the proper officer in their jurisdiction’s Taxpayer Services Division. These officers will process the applications and, upon approval, issue a Refund Sanction Order (Form KFC RFD-6) and a Refund Payment Order (Form KFC RFD-5). These orders will then be communicated to the District Joint Commissioner of State Tax, Taxpayer Services, who is responsible for disbursing the refunds.

For refunds sanctioned by Central Tax Authorities, the process remains similar, with the Refund Sanction and Payment Orders forwarded to the appropriate Joint Commissioner of State Tax for disbursement. The District Joint Commissioner of Taxpayer Services will present these orders to the treasury authorities via their Drawing and Disbursing Officers (DDOs) for payment processing. The refunds will be made from the head of account where the excess payment was recorded.

All refund payments will be released through the bank account linked to the taxpayer’s GSTIN to ensure accuracy and traceability. Once the payment is made, the Joint Commissioner of Taxpayer Services will notify the concerned proper officer of State or Central Tax. Additionally, the District Joint Commissioners are required to maintain a detailed register of all refund transactions, ensuring transparency and accountability in the refund process.

Strict adherence to the time limits specified in the Kerala Flood Cess (Amendment) Rules 2023 is mandatory for processing refund applications. Proper officers are tasked with promptly communicating the Refund Sanction and Payment Orders to avoid delays. Any difficulties encountered in implementing these instructions should be reported immediately to ensure swift resolution.

Office of the Commissioner of State Tax
State Goods and Services Tax Department
Tax Towers, Karamana, Thiruvananthapuram.
E-mail:cstpolicy.sgst@kerala.gov.in
Ph: 0471-2785276, Dated: 24-05-2024

File No. CT/5431/2020-C4

Circular No. : 09/2024

Sub : Kerala State Goods & Services Tax Department – Refund of Kerala Flood Cess – instructions issued-reg:

Ref: 1. Notification S.R.O No. 1284/2023 dated 28/11/2023 of Government of Kerala

2. Government letter No. B1/21/2024-TD dated 27.03.2024

I. Government, vide Notification referred above amended the Kerala Flood Cess Rules 2019, to include refund provision in Kerala flood Cess Rules. The Application for refund of Kerala Flood Cess shall be submitted manually in Form KFC RFD-1,before the expiry of two years from the last day of the financial year in which such supply was made or before the expiry of two years from the date of notification of the Kerala Flood Cess (Amendment) rules, 2023, whichever is later. In order to streamline the refund process, the following guidelines are issued in exercise of the powers conferred under sub-rule (13) of Rule 3A of the Kerala Flood Cess Rules 2019,

1. The taxpayers shall submit the app lication for refund (Form KFC RFD-1) duly filled up, along with required documents, manually, before the proper officer in the jurisdictional Taxpayer Services Division.

2. The refund applications filed by the taxpayers in their respective jurisdiction shall be processed by the respective proper officers.

3. After processing, if the claim is approved partially or fully by the proper officer, the Refund Sanction Order (Form KFC RFD-6) along with the Refund Payment Order (Form KFC RFD-5) issued by the proper officer shall be communicated to the respective District Joint Commissioner of State Tax, Taxpayer Services for disbursal of refund.

4. In the case of refund claim sanctioned by the Central Tax Authorities, the Refund Sanction Order (Form KFC RFD-6) along with the Refund Payment Order (Form KFC RFD-5) shall be forwarded to the Joint Commissioner of State Tax, Taxpayer Services Vertical of the District concerned for disbursal of refund.

5. The District Joint Commissioner of Taxpayer Services vertical shall present the Refund Sanction Orders and Payment Orders received from the proper officers of State Tax or Central Tax, before the treasury authorities, in due format, through their DDOs for disbursal of refund amount.

6. As informed by Government, vide Letter No. B1/21/2024-TD dated 27.03.2024, the Head of Account for refund of Kerala Flood Cess will be the head of account in which the excess payment has been made, which is shown below;

MH- 0040 Tax on sales,Trade etc.

MIH- 800 Other Receipt

SH – 89 Kerala Flood Cess

SSH – (01) Collections

SSH – (02) Penalty

SSH- (03) Interest

7. The payment shall be released only through the Bank Account linked with the GSTIN of the taxpayer.

8. After the release of payment, the Joint Commissioner, Taxpayer Service shall communicate the same to the concerned proper officer of State Tax / Central Tax as the case may be.

9. The District Joint Commissioners of Taxpayer Services shall maintain register for Refund- Kerala Flood Cess Refund Register- in the format shown as Annexure-1.

10. The time limit stipulated in the Kerala Flood Cess (Amendment) rules, 2023 for processing of refund application shall strictly be followed.

11. The proper officers shall communicate the Refund Sanction Orders and Payment Orders to the respective district Joint Commissioners, Taxpayer Services as early as possible so that, the DDO will have enough time to process the payment within the time limit prescribed under the rules.

11. Any difficulty in implementing the above instructions may be informed at the earliest.

AJIT PATIL I A S
COMMISSIONER OF STATE TAX

To

All concerned.

Annexure-1

Kerala Flood Cess Refund Register

SL. No
Name of Taxpayer
GSTIN
Jurisdiction – Center/ Stat e
Number & date of Sanction or der
Number & date of Payment order
Refund Am ount
Date of receipt of Ord ers
Date of submission to treasury
Bank Account No. of Taxpayer
Name of Bank and IFS cod e
Date of credit of ref und amount in the Taxpayer’s bank account
1
2
3
4
5
6
7
8
9
10
11

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