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Kerala Flood Cess (KFC) with effect from 1st August, 2019

Kerala Flood Cess (KFC) with effect from 1st August, 2019

Government of Kerala has decided to levy and collect Cess in the name of Kerala Flood Cess (KFC) with effect from 1st August, 2019 vide notification # S. R. O. No. 436/2019 dated 29th June 2019. Ambiguity regarding whether to charge GST on KFC is also now cleared by a notification # 31/2019-Central Tax dated 28th June, 2019 issued by CBITC. A new CGST rule 32A is inserted wef 1st July 2019, whereby there is no need to charge GST on KFC. illustration : Value of goods is Rs 12,500/- GST Rate - 18% KFC - 1% Total Value of goods 12,500.00 Taxable Value 12,500.00 CGST @ 9% 1,125.00 SGST @ 9% 1,125.00 KFC @ 1% 125.00 Invoice Value 14,875.00

 

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