Intro:
1)As a First deviation from the slogan “One Nation One Tax”, The Government of India allowed Kerala state to impose Flood Cess to face the challenges being faced due to heavy floods in 2018.
2)The Flood Cess has been introduced vide clause 14 of Kerala Finance Bill, 2019 of Kerala State Government.
3)The Effective date from which the Cess would apply is 01.08.2019.
4)The Cess would apply for a period of 2 years.
Applicability:
1)The Flood Cess would apply on the value of Intra-State Supply by registered dealers at the last supply point i.e. to customers or other unregistered dealers.
2)There is no Kerala Flood Cess on Inter-State Supply.
3)There will be no Input Tax Credit.
Non Applicability:
1) There will be no Kerala Flood Cess on:
a) Supplies undertaken by a Composition Scheme taxpayer.
b) Supplies of Goods or Services or both which are exempted or NIL rated under the Kerala GST Act.
c) Supplies of Goods or Services or both by a registered person to another registered person (i.e. B2B).
d) Goods which attracts 0.125% SGST i.e. rough diamonds and rough precious stones etc.
e) Goods which attracts 2.5% SGST.
Rate of Cess:
1)The rate of Cess on V Scheduled Goods, including Gold, Silver, Platinum Ornaments would be 0.25% on the Value of Supply.
2)Cess on Supply of Goods coming within the GST Tax Bracket of 12%, 18%, and 28% would be 1% of the Value of Supply.
3)Cess on Supply of all Services would be 1% of the value of Supply.
How to make payment of Cess:
1)Payment of cess is to be made along with the details of supplies made in the monthly returns in FORM KFC-A.
2)Monthly return is to be filed electronically through the official portal www.keralataxes.gov.in with payment of cess electronically.
3)Monthly return in FORM KFC-A is to be filed on or before the due date of filing of return in FORM GSTR-3B.
Requirement in Invoice:
1)Kerala Flood Cess is required to be shown separately in the Invoice issued for supply of Goods or Services or both.
2)Further, As per Rule 32A of CGST Rules inserted w.e.f . 28.06.2019, Value for payment of IGST, CGST and SGST will not include Kerala Flood Cess payable under Clause 14 of Kerala Finance Bill, 2019.
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