Kerala Flood Cess for goods, services kicks in June 1
The cess is not expected to jack up prices of daily consumption items as merchants and traders at the bottom level have been exempt.
Thiruvananthapuram: The state government has notified the imposition of one per cent Kerala Flood Cess from June 1 on goods and services in slabs attracting GST rates of 5 percent and more. There will no cess on slabs below 5 per cent and merchants with an annual turnover less than Rs 1.5 crore. Gold, silver and platinum jewellery will attract 0.25 percent cess.
The cess is not expected to jack up prices of daily consumption items as merchants and traders at the bottom level have been exempt. The cess, earlier approved by the GST Council, was announced in the state budget but kept in abeyance till after the Lok Sabha elections.
The two-year cess is expected to bring in an additional `600 crore in the first year for funding the reconstruction, rehabilitation and compensation needs following the massive flood that occurred in August 2018.