8th August 2018, Kerala witnessed the worst flood in the century, affecting over one-sixth of the total population of the state.
The Chief Minister of the Kerala, Pinarayi Vijayan, has estimated a sum of at least Rs. 20,000 crores would be required to bring back normalcy within the state. The Kerala government has also decided to cancel all government-funded events for a year, and use the money for flood relief instead.
With a view to reconstruct, rehabilitate and compensate the needs so arisen due to the flood, the Kerala State Government has decided to levy a Kerala Flood Cess (KFC) on the value of supply of goods or services or both for a consecutive period of 2 years, effective from 1st July 2019.
The amount collected from this Cess will be distributed to Kerala State Government only. Hence the payment need not be made through GSTR-3B instead a new form KFC-A has been introduced. The taxpayer will have to file this form on the Kerala tax Department Portal (keralataxes.gov.in) instead of the GST Portal. Although the due date of filing KFC-A is the 20th day of the subsequent month, it needs to be filed before the filing of GSTR-3B.
Multiple rates of KFC are as follows:
| Nature of Goods | Rate of CESS |
| Goods taxable @ 3% GST | 0.25% |
| Goods taxable @ 5% GST | Nil |
| Goods taxable @ 12% GST | 1% |
| Goods taxable @ 18% GST | 1% |
| Goods taxable @ 28% GST | 1% |
| All taxable Services | 1% |
KFC need not be charged in the following cases:
- If the sale of goods or services or both are inter-state supplies.
- If the goods or services are sold at Nil rated or they are of exempted category.
- If goods or services are sold to composite taxpayers.
- Supplies of goods or services or both by a registered person to another registered person.
- Goods which attracts 0.125% SGST, i.e. diamonds and precious stones etc.
In case there is any delay in payment of KFC then 18% interest will be charged. It will be applicable from the due date of payment until the actual date of payment.
Quick Points
- Kerala Flood Cess (KFC) will be applicable from Jul 1, 2019, for a period of 2 years.
- For the payment of KFC, a new form KFC-A will be introduced on the Kerala tax Department Portal.
- KFC will be charged on the taxable value.
- KFC is liable to be paid only by registered persons if they make any sale to an unregistered person.
- The invoice should clearly state the amount of KFC charged.
- The Kerala Government will check whether the Place of Supply in form GSTR-1 (i.e. 29) and first two digits of the GSTIN match in form KFC-A.
For any queries, feel free to connect with us at support@irisgst.com.
Keep this going please, great job!
Thanks in support of sharing such a good opinion, post is pleasant,
thats why i have read it entirely
Thank you for your post. I liked reading it because it addressed my issue. It helped me a lot and I hope it will help others too.
Dude these articles are amazing. They helped me a lot.
There is no doubt that your post was a big help to me. I really enjoyed reading it.
May I request that you elaborate on that? Your posts have been extremely helpful to me. Thank you!
Thank you for your help and this post. It’s been great.
Thank you for writing such an excellent article, it helped me out a lot and I love studying this topic.
You really helped me by writing this article. I like the subject too.
I always find your articles very helpful. Thank you!
Thank you for posting this post. I found it extremely helpful because it explained what I was trying to say. I hope it can help others as well.
Thanks for your post, it helped me a lot. It helped me in my situation and hopefully it can help others too.
I like what you guys are up also. Such clever work and reporting! Carry on the superb works guys I’ve incorporated you guys to my blogroll. I think it’ll improve the value of my website 🙂
I like the helpful information you supply in your articles. I will bookmark your weblog and take a look at again right here frequently. I’m moderately sure I will be told a lot of new stuff right here! Best of luck for the following!