CA Pratibha Goyal | Jun 2, 2019 |
Kerala Flood Cess Frequently Asked Questions or FAQ’s on Kerala Flood Cess
We all are well aware of massive floods that hit Kerala in August 2018. In wake of those floods and to re-establish lost glory of State of Kerala, Government has introduced applicability of Kerala Flood Cess effective from 1st July 2019. Through these FAQ’s, let’s discuss various points related to Applicability of Kerala Flood Cess Rules 2019 in simplified manner.
A Cess is a special Type of Tax, which is made applicable for serving a specific purpose. For Example, Swatch Bharat Cess was made applicable to serving purpose of cleaning India, Education Cess was made applicable for Promoting Literacy, Similarly Kerala Flood Cess is being made applicable of re-establishing the State of Kerala.
Kerala Flood Cess would be applicable with effect from 1st July, 2019.
Kerala Flood Cess shall be levied on intra-state supplies of goods or services or both made by a taxable person to an unregistered person.
Provided that no such cess shall be leviable on-
(i) supplies made by a taxable person who has decided to opt for
composition levy
(ii) supplies of exempted goods and services or both
(iii) supplies of goods and services or both made by a registered taxable
person to another registered taxable person.
For Example if Supply is as follows:
Mr A Supplies Goods to Mr B. Both are register supplier in state of Kerala. In this case this cess would not be applicable.
But now Mr B supplies the goods to Mr C who is a consumer or unregistered supplier, In this case Kerala Cess would be applicable.
SI. No. | Description of goods or services or both | Rate of cess |
1. | Supplies of goods for which tax rate is fixed at 1.5 (Gold & Silver) | 0.25% |
2. | Supplies of services for which tax rate is fixed at 2.5 | 1% |
3. | Supplies of goods and services or both for which tax rate is fixed at 6%, 9% and 14% | 1% |
Calculation of Kerala Flood Cess has been explained with the help of Below mentioned example:
Mr B supplies the goods of Value Rs. 100 on which KGST Rate of 14% is applicable to Mr C who is a consumer or unregistered supplier, In this case Kerala Cess would be applicable.
| Value of Supply | 100 |
| CGST | 14 |
| KGST | 14 |
| Kerala Flood Cess | 1 |
| Gross Value | 129 |
Online payment of Kerala Flood Cess due shall be made while filing monthly return in Form No: KFC-A on portal www.keralataxes.gov.in.
Yes businesses on which this liability is applicable will file Form No: KFC-A on portal www.keralataxes.gov.in.
Due date of filing Form No: KFC-A is 20th of Next Month.
No credit is allowed on the cess paid as the same is levied on transactions between the unregistered end consumers and the taxable persons. B2B transactions are not covered in Kerala Flood Cess.
There shall be no refund of the Kerala Flood Cess paid along with the returns.
Kerala Flood Cess is applicable for the term of 2 years i.e. 30th June 2019.
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. In no event shall I shall be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information
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