Kerala Flood Cess levied by Kerala State Government

The given notification has been issued by the Kerala State Government for the purpose of levying the Kerala Flood Cess. The same has been passed in furtherance of the 30^th Meeting of The GST Council and will be applicable from 01.06.2019 on either the value of supply of goods or services or both.

The Highlights of the Cess are as follows:

1. The Cess shall be applicable for a period of two years from 01.06.2019 (1^st June, 2019)
2. The Cess shall be levied to unregistered persons by a taxable person, within the state, i.e. intra-state, on the supply of either goods or services or both in the State of Kerala.
3. The following are the rates at which the Cess will be levied on goods and services: – 1% of the value of intra-state supply of all services; 1% of the value of intra-state supply of goods which attract: 6%, 9% or 14% SGST and 25% of the value of intra-state supply of goods which attract 1.5% of SGST
4. The following are aspects to which the Cess would not apply: A Composition Taxpayer’s Supply; Goods on which SGST is applicable at the rate of 0.125%; B2B supply of goods or services, i.e. Goods and services supplied by a registered taxpayer to another.
5. The Kerala Flood Cess shall be shown distinctly on the invoice issued for the supply of goods and services
6. Form KFC-A should be used a means to pay the State Government of Kerala the monthly Flood Cess. The details of supplies should also be submitted with the specified Form. These returns have to be filed on or before the due date of filing of GSTR-3B, which happens and is thus supposed to happen every month.
7. Further, the details of outward supply as have been mentioned in such returns should match with that mentioned and specified as per GSTR-1.
8. Lastly, it is put forward that there shall be no mechanism for claiming refund of the Cess paid with the returns filed.