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. Kerala Flood Cess is levied under Section 14 of Kerala Finance Act, 2019.
Commencement and Duration
As per notification Kerala Flood Cess is applicable from Aug 1, 2019. Kerala Flood Cess will be in force for a period of two years from the date of commencement.
When is Kerala Flood Cess Applicable?
Kerala Flood Cess is applicable only to Intra-State supply of Goods or Services. Transaction between tax payers in furtherance of business is exempted from levy of Kerala Flood Cess. If a supply is made to an unregistered tax payer, Kerala Flood Cess is to be levied. If the supply is made to a registered person but not in furtherance of business, Kerala Flood Cess is to be levied. The cess is not applicable to exempted goods or services described in Sec.14(2) of Kerala Finance Act, 2019. Composition tax payers are exempted from the levy of Kerala Flood Cess including tax payers who have opted for composition for service.
Is it required to include Kerala Flood Cess in Invoices?
Yes. As per rule, Invoices should contain details of Kerala Flood Cess like rate of tax and amount of tax charged in respect of taxable goods or services.
How to calculate Kerala Flood Cess?
|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%|
Kerala Flood Cess is to be calculated on the value of supply. The CGST and SGST collection shall not be included in the value of supply.
Eg:- If the value of supply is Rs.100/- and tax rate of the commodity is 12% GST, the invoice to be raised as shown below:
|Value of Supply||Rs. 100/-|
|Kerala Flood Cess||Re. 1/-|
|Total Sales Value||Rs. 113/-|
How to register for Kerala Flood Cess?
The tax payer has to login the official website “www.keralataxes.gov.in” to generate user ID and password. While entering GSTIN number, one time password (OTP) will be sent to the mobile number of authorized representative for creating used ID and password. After login to the system, tax payers shall furnish the details of turnover applicable for Kerala Flood Cess and make e-Payment of Kerala Flood Cess.
How and when to remit Kerala Flood Cess to the Government?
As per GST Law, the tax due for a month has to be remitted on or before 20th of the succeeding month in GSTR 3B return. Due date for filing GSTR 3B shall be applicable for the Kerala Flood Cess return. 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.
The return shall be filed electronically and the e-Payment of Kerala Flood Cess is to be made on the the official portal “www.keralataxes.gov.in”.
Interest on delayed Payment
Interest at 18% will be applicable for delayed payment of Cess.
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