Kerala: Flood cess of 1 percent for goods, services comes into effect from August 1

Thiruvananthapuram: Marking one year of Kerala August floods, the state government has started levying 1% flood cess on goods and services transacted from today onwards. The flood cess will be imposed on goods and services in slabs attracting GST rates of 5 percent and more. The state intends to raise about ₹1200 crore from the cess. 

According to reports, the GST council had permitted the state government to levy 1% cess on goods and services in Kerala to mobilise resources for rebuilding the flood-hit state. The GST council has not imposed the cess under the tax slabs below 5% on goods and services. Traders are excluded from the cess who have opted for composition tax.