The finance minister of Kerala informed that the flood cess implementation has been extended to July 1st.
The flood cess is implemented as per section 14 of Finance bill 2019. According to this section, cess will be imposed on those people who undertake supplies inside the state without registration. That means
• Cess will not be impose on those trades and services conducted between traders whom have GST registration
• Supplies outside the state don’t come under the cess.
• The things exempted from the tax don’t come under the cess
• There will not be cess for those GST taxpayers under composition scheme
• The things which have 5% GST are exempted from cess. However the services with 5% GST come under the cess. ( Food supply is a service and hence included in the cess)
• The medicines given to the outpatients with 12% and 18% GST are included in the cess.
• The apartment construction services rate were revised under GST. According to the 14th section of the finance bill these groups are also exempted from cess.
• It is noticed that flood cess has to be quoted in invoice. There will be special returns for the cess. Special user id and password will be given to enter the state tax portal
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