Flood cess will be brought to effect on June 1, 2019. As per the latest government notification, goods bought inside the state will be charged with an additional one percent flood cess in addition to the GST. Though not clarified, as per an unofficial statement, the cess will be levied for the next two years. The government aims about Rs 600 crores revenue through this.
Most items like medicines (life-saving medicines exempted), jewelry, rice, coconut oil, soap will be charged with flood cess. The cess will also be applicable for marble, cement, steel bars, bank draft, telephone charge, and tuition fees.
Cess is exempted for food items with five percent tax, handloom, and coir. It is also exempted for businesses and hotels with Rs 1.5 crores turnover that has implemented a compound tax system.
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