Kerala’s flood cess comes into effect from today

Last Updated at: November 27, 2019
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Kerala's flood cess comes into effect

WHAT IS KERALA FLOOD CESS?

Kerala flood cess is an additional tax introduced by Kerala State Government with effect from 1st of Aug 2019. The objective of the government is to collect additional taxes to revive the state out of the loss created because of the floods in the last year.

Kerala cess should be levied on the sale of goods/services for the next 2 years. (i.e. until July 2021)

WHEN KERALA FLOOD CESS SHOULD BE CHARGED?

Kerala Flood Cess has to be charged at 1% on the base value:

    • To be charged only by GST Registered businesses in the state of Kerala.
    • To be charged only on Goods/Services are being sold within the state. If you are selling from Kerala to another state, you need not charge 1% cess. (i.e. when CGST and SGST is being charged)
    • To be charged only on Goods and services for which applicable GST rate is 12%, or 18%, or 28%, or 40% (i.e. It should not be charged when goods/services are being sold at a GST rate of 0%, or 5%)
    • To be charged only on B2C sales, but not on B2B sales (i.e. If the purchaser of goods/services provide their GSTN number then Kerala Cess need not be charged. Otherwise it has to be charged)

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SAMPLE INVOICE WHEN KERALA CESS IS BEING CHARGED

Note: Kerala flood cess should be separately indicated in the invoice below CGST and SGST

However, it will be applicable at 0.25% if you are dealing with goods like a diamond, gold, and other precious metals where GST will be applicable at 1.5%

WHEN KERALA CESS SHOULD BE REMITTED TO GOVERNMENT?

It should be remitted to the government on or before 20th of the subsequent month.  (For instance, Kerala cess collected in August should be remitted before 20th of September).

For any queries, reach out to our experts at support@vakilsearch.com

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Kerala’s flood cess comes into effect from today

2352

WHAT IS KERALA FLOOD CESS?

Kerala flood cess is an additional tax introduced by Kerala State Government with effect from 1st of Aug 2019. The objective of the government is to collect additional taxes to revive the state out of the loss created because of the floods in the last year.

Kerala cess should be levied on the sale of goods/services for the next 2 years. (i.e. until July 2021)

WHEN KERALA FLOOD CESS SHOULD BE CHARGED?

Kerala Flood Cess has to be charged at 1% on the base value:

    • To be charged only by GST Registered businesses in the state of Kerala.
    • To be charged only on Goods/Services are being sold within the state. If you are selling from Kerala to another state, you need not charge 1% cess. (i.e. when CGST and SGST is being charged)
    • To be charged only on Goods and services for which applicable GST rate is 12%, or 18%, or 28%, or 40% (i.e. It should not be charged when goods/services are being sold at a GST rate of 0%, or 5%)
    • To be charged only on B2C sales, but not on B2B sales (i.e. If the purchaser of goods/services provide their GSTN number then Kerala Cess need not be charged. Otherwise it has to be charged)

Get Legal Advice From Experts

SAMPLE INVOICE WHEN KERALA CESS IS BEING CHARGED

Note: Kerala flood cess should be separately indicated in the invoice below CGST and SGST

However, it will be applicable at 0.25% if you are dealing with goods like a diamond, gold, and other precious metals where GST will be applicable at 1.5%

WHEN KERALA CESS SHOULD BE REMITTED TO GOVERNMENT?

It should be remitted to the government on or before 20th of the subsequent month.  (For instance, Kerala cess collected in August should be remitted before 20th of September).

For any queries, reach out to our experts at support@vakilsearch.com

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A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.