The Government of Kerala has been given the green flag for levying 1% Kerala Flood Cess on goods and services transacted within the state. By doing so, Kerala will be the first state to enact a calamity cess. The aim of levying a calamity cess as such is rebuilding, reconstructing and rehabilitating of the flood-affected Kerala. The disaster cess is expected to come into effect from July 1, 2019
Even though people are aware of the news, there are lots of speculations doing the rounds about how the Kerala Flood Cess is going to be calculated. This article provides you with a clear-cut idea of how the Kerala Flood Cess will be levied on the goods and services consumed.
The basic KFC equations on which calculations are made are illustrated belwo:
Taxable Value = Basic Rate-Discount (if any)
Total Value of product would thus depend on:
i.e. Total Value = Value + GST + KFC
KFC is determined based on the taxable value of a product or service. Let us consider the following example for better understanding:
|Particulars||Amount without KFC||Amount after KFC|
|Assumed Taxable Value||1000||1000|
|Taxable Value for GST||1000||1000|
The government of Kerala has extended the last date for filing KFC return for the period of February 2020-May 2020 on grounds of the global pandemic. The notification issued on June 29, 2019 had implemented KFC in tax structure with effect from August 1, 2019.
Another notification was issued on May 25, 2019 had further notified that the due date for GSTR 3B return shall also be applied for KFC return as well. The taxpayers are mandated to file KFC return on or before 20th of the succeeding month.
The Goods and Service Tax (GST) is an indirect/consumption tax levied on the supply of goods. Currently, GST is divided into 5 tax slabs for collection of tax- 0%, 5%, 12%, 18% and 28%.The Goods & Service Tax came into effect on July 1, 2017 as per the 101st Amendment of the Constitution of India by the Indian Government.
The GST types are determined based on the province in which the goods and/or services are exchanged and transactions made. The types of GST include: • Central Goods & Services Tax (CGST) • State Goods & Services Tax (SGST) • Union Territory GST (UTGST) • Integrated GST (ITGST)