Notification out, Flood cess to be in effect from June 1
Thiruvananthapuram: Flood cess will come into effect from June 1. A notification in this regard was released on Monday.
Last week, Chief Minister Pinarayi Vijayan had signed the file regarding the flood cess which will be applicable for goods and services.
The decision was to collect 1 per cent cess for two years. The cess will be applicable to all goods and services above the 5 per cent tax slab. The cess will not be applicable to products and services including movie tickets and railway services.
Products being sold by small traders have been excluded from the cess. Those who have an annual turnover of less than 1.5 crore have been exempted from the cess. The cess will be applicable for transactions within Kerala. Interstate transactions that fall under GST will not have the additional cess.
Flood cess will be enforced on supply to unregistered enterprises. The cess will not be applicable to the billed transactions of goods and services of registered traders.
The budget session had suggested to enforce additional cess on goods and services to raise funds to rebuild the state after the devastating floods of 2018. Though the initial decision was to enforce the cess from April 1, it was postponed to June 1 in view of the Lok Sabha polls.