Why Kerala Flood Cess is imposed?

Kerala Flood Cess is levied to raise the fund required for re-construction of State after the devastating flood occurred in the State during August 2018.

Which is the date of commencement of Kerala Flood Cess?

Kerala Flood Cess is applicable from the 1st August, 2019 onwards as per notification No. S.R.O. 436/2019 dated 29/06/2019 for a period of two years.

Kerala Flood Cess levied under which Law?

Kerala Flood Cess is levied under Section 14 of Kerala Finance Act, 2019. The Kerala Flood Cess Rules published vide Notification SRO. No.359/2019 published as G.O.(P) No.80/2019/TD dated 25-05-2019.

Whether levy of Kerala Flood Cess is approved by GST Council?

Yes. 32nd meeting of the GST council has accorded sanction to levy of Kerala Flood Cess.

How long the Kerala Flood cess will be collected and at what rate?

Kerala Flood Cess will be in force for a period two years from the date of commencement. Kerala Flood Cess is imposed @ 1% on the value of supply of goods or services or both coming under Schedule II, III & IV of SRO.No.360/2017 Dt.30.06.2017. But in the case of goods coming under Fifth Schedule of SRO.No.360/2017 (gold, diamond etc.), the Kerala Flood Cess is applicable at the rate of 0.25%.

Is any separate registration required for the payment of Kerala Flood Cess?

No. GSTIN will be treated as Registration Number 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. Detailed procedure for the filing of return will be released separately.

When Kerala Flood Cess is to be remitted to 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.

What are the details to be furnished in the return?

After login to the system, select the return period and enter the details of turnover of outward supply leviable under Kerala Flood Cess based on GST tax rates.

Whether Kerala Flood Cess is applicable to goods and services?

Yes. Kerala Flood Cess is applicable to goods and services or both as per Section 14 (2) of Kerala Finance Act, 2019.

Kerala Flood Cess is to be calculated in which value?

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/- CGST - Rs.6/- SGST - Rs.6/- Cess - Rs.1/- Total sales value - Rs.113/-