Kerala govt decides to extend introduction of flood cess to July 1

Kerala government has decided to introduce the one per cent flood cess from July 1, aimed at mobilising resources for rebuilding the state devastated by the August deluge last year. Earlier, the government had said the cess would come into force from June one this year.

The decision to extend the date was taken to avoid payment of tax on the cess, a government release said. On the basis of Goods and Services Tax council's recommendations and after making appropriate arrangements, the cess collection will commence, the release added. The business community had sought some more time for the levy of the cess. Taking into consideration all these matters, the government has decided to extend the introduction of levy to July one.

The GST Council had permitted the government to levy the one per cent cess on goods and services within the State to raise resources to rebuild the state. While presenting the budget for 2019-20 fiscal, State Finance minister Thomas Isaac had announced a one per cent flood cess for goods coming within the GST tax brackets of 12, 18 and 28 per cent. He had also announced a 0.25 per cent cess on all goods coming under the Fifth schedule of GST, including gold, silver and platinum ornaments on the value of supply for a two year period.