Rebuilding Kerala: 1 percent flood cess for 2 years from Thursday
Thiruvananthapuram: Flood cess, imposed by the state to aid in rebuilding Kerala will come to effect from Thursday. Along with Goods and Services Tax (GST), one percent cess will be imposed.
Goods and services, except gold, which have 5 per cent or less tax will not attract the additional 1 per cent flood cess. Traders who have chosen composition type tax payment have been exempted from flood cess. Hotel food, A. C. Train and bus ticket booking have also been exempted from flood cess.
All consumer goods, except a group of selected items, and building material will be 1 per cent dearer from Thursday. The cess will be imposed for two years from August 1, 2019.
Gold, silver and platinum jewellery which comes under table five of GST law will attract 0.25 percent flood cess while other jewellery items will attract 1 percent flood cess on their distribution value. The flood cess will be imposed on the value before adding GST.
Flood cess will be imposed on goods and services from Kerala only at the last stage of distribution.
The tax department had already requested traders to make changes to the billing software to incorporate the flood cess. The state GST commission had asked to submit details regarding flood cess for the respective months through forms available at www.keralataxes.gov.in.
Kerala government imposed flood cess to generate Rs 600 crore for rebuilding the state after the devastating floods last year. Vyapari Vyavasayi Ekopana Samithi has opposed the flood cess.