Thiruvananthapuram: The Kerala state government has issued an order for introducing flood cess from June 1, 2019. 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 ₹600 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 service. Traders are excluded from the cess who have opted for composition tax.

Also read: Dam Safety Authority chairman refutes claims of amicus curiae report

Goods, including gold, silver, and platinum ornaments, that figure in the fifth schedule of GST will have a cess of 0.25% and those in the 12,18, and 28% tax slabs will have 5%, and those above these slabs, 1%. 

 There will no cess on slabs below 5 per cent and merchants with an annual turnover of less than Rs 1.5 crore. Gold, silver and platinum jewellery will attract 0.25 percent cess. Details of the cess collected every month should be submitted on, the release said.

Also read: Class 9 student’s project on Kerala flood makes it to United Nations summit

Due to floods, Kerala incurred losses to assets and crops of about ₹20,000-25,000 crore excluding loss of income, which may be even greater.

According to sources, the two-year cess might bring in an additional 600 crore in the first year for funding the rehabilitation, reconstruction and compensation requirements following the August 2018 flood.

 The cess, was approved by the GST Council and was even announced in the state budget but kept in abeyance till after the Lok Sabha elections.