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Kerala Flood Additional Cess

Enforcement of additional cess on goods and services is done to raise funds to rebuild the state after the devastating floods of 2018. Additional Flood cess will come into effect from 01/06/2019.

Key Highlights for the same are as follows:-

  • Rate of cess to be charged on the Taxable Value of Supply and not on GST amount.
  • Rate @1% on all services and goods having GST rate - 12/18/28%.
  • Rate @.25% on goods having GST rate - 3% ( gold & silver)
  • Cess will not be charged for goods having GST rate of 5% or below.
  • Exemption for small traders having annual turnover of less than 1.5 Crores.
  • Applicable for all Intrastate supplies only i.e. not for Inter State supplies.
  • Applicable for B2C supplies only i.e. to unregistered person.
  • It should be shown separately in the invoice.

Every taxable person liable to pay the Kerala Flood Cess shall file a monthly return in Form No: KFC-A on or before the due date for filing of GSTR-3B return, specified under rule 61 of the Kerala Goods and Services Tax Rules, 2017.

The return shall be filed electronically through the official portal 'www.keralataxes.gov.in' and e-payment of Kerala Flood Cess due shall be made along with such return.

Further as per the provisions of Section 15, Kerala cess should be included in the value of supply for the purpose of levy of CGST and SGST.

Example

Value of Supply: Rs.100.00
Add: KFC @1%: Rs. 1.00
                          Rs.101.00

Add: CGST@9%  Rs. 9.09
Add: SGST@9%  Rs. 9.09

Total                    Rs.119.18

As of now as per the reading of Notification and Sec 15, it comes out that GST need to be discharged on Rs.101. Clarity for it is required whether it need to be discharged on Rs.100 and the same has been asked from Commercial Tax Department and will be shared when received.

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