State Goods and Services Tax Department – Government of Kerala has issued Circular No. 10/2019 to clarify regarding liability to file Kerala Flood Cess Return and provide instructions regarding levy of Kerala Flood Cess.
Key points of the Circular are:
- It has been clarified that, as per Section 14(1)(iii) of Kerala Finance Act, 2019, supplies of goods or services or both made in furtherance of business by taxable person in the State to another taxable person having Goods and Services Tax registration in the State is exempted from levy of Kerala Flood Cess. Similarly, in cases of Tax Deduction at Source (TDS) registration in the State (which is also a Goods and Services Tax registration), the supply made to the persons having TDS registration in furtherance of business of the Government functions shall be exempted from Kerala Flood Cess. Hence, the supply made to Government Departments and local authorities having GST registration either as Tax Payer or Tax Deductor shall qualify for exemption from Kerala Flood Cess.
- It has also been clarified that, as per Rule 3 (1) of Kerala Flood Cess Rules, 2019, only taxable persons are liable to file Kerala Flood Cess Return in Form KFC-A and pay Kerala Flood Cess. If the taxable persons has no supply liable to Kerala Flood Cess during a Financial Year, they are not liable to file Kerala Flood Cess Return. However, once a tax payer has become liable to file Kerala Flood Cess Return for a return period during a Financial Year, they have to file Kerala Flood Cess return for the subsequent return periods of the financial year. The tax payers are also provided with an easy option to file ‘Nil Return’ for the return periods having no liability to pay Kerala Flood Cess.
For further details please refer the attached documents.
Source: State Goods and Services Tax Department- Government of Kerala
