The Kerala Government has announced that the flood cess would be applicable till 31st July 2021. In a press release issued today by the Government has directed the businesses to make necessary changes in their billing software accordingly.
Currently, goods and services attracting more than 5% GST are subject to an additional one per cent cess. Further, a GST rate of .25 per cent is levied on gold.
As per the notification dated June 29, 2019, and published in the Kerala Gazette dated July 01, 2019, the Government of Kerala had decided to implement the Kerala Flood Cess with effect from August 01, 2019 in order to overcome the crisis caused due to flood in 2018. As per the notification issued under dated May 25, 2019, and published, the Government has further notified that the due date for filing GSTR 3B return is applicable for return for Kerala Flood Cess also.
A proposal to levy a disaster cess on the GST was tabled before the Council in October. The proposal to impose the cess for two years was later approved by the GST Council. The state had originally proposed a 10 per cent cess on SGST, the tax revenue for the state from the intra-state supply of goods and services, to mobilize funds for the state’s post-flood rebuilding activities. However, the former Finance Minister Arun Jaitley put forth an alternate proposal for an all-India GST cess.
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