Levy of Kerala Flood Cess in BSNL Telephone Bills as per GST Law

Find the notification issued by Government of Kerala through its tax notification to levy a cess called Kerala Flood Cess applicable for all the prepaid and postpaid customers of BSNL in Kerala.

A massive flood occured in state of Kerala in the month of August 2018 which caused a great loss of lives and property in the state, In this connection Government of Kerala through its tax notification have decided to levy a CESS called Kerala flood cess for a period of 2 years for the purpose of providing reconstruction rehabilitation and compensation needs in the state.

The main highlights of the notification (80/2019/Taxes dtd 25th May 2019 issues by Taxes(B) Department, Govt of Kerala) have been summarised below

  • For the purpose of levying Flood Cess, the state Govt has notified Kerala Flood Rules 2019 which would become effective from 1st June 2019.
  • Flood Cess shall be levied on Intra State Supplies of Goods or Services or both made by a taxable person to an unregistered person(B2C).
  • The Flood Cess shall be applicable on the following categories of intra state B2C supplies.
Category of SupplyRate of Cess on Taxable Value
Goods Taxable at the rate of 1.5% SGST0.25%
Goods taxable at the rate of 6%, 9% or 14% SGST1%
All taxable services under SGST1%
  • Flood Cess shall be shown separately in Invoice
  • Every person liable to pay the cess amount need to file a monthly return in form No KFC-A on or before the due date for filling of form GSTR 3B through official portal keralataxes.gov.in and payment has to be made along with such return only.
  • Details of outward supplies which attract the levy o cess needs to be disclosed in Form No KFC-A which shall also match with corresponding details of Form GSTR 1
  • Where the cess shall not applicable in the following cases
    • Supplies made by a person who has opted for composition levy.
    • Supplies of exempted goods/services.
    • Supplies by registered person to another registered person.
    • Inter State Supplies
Which BSNL customers have to pay this Kerala Flood Cess?

The BSNL customers of Fixed Line (Landline/ Broadband / Bharat Fiber), Postpaid Mobile, Leased Circuits, Online Recharges, REM, S&D etc have to pay this Kerala Flood Cess.

How to pay this Kerala flood cess by BSNL customers?

The operator includes this new flood cess as per the above mentioned applicable rates in customer postpaid telephone bills when issued, and also for prepaid on recharge.

Is this flood cess applicable to all states?

As per the Kerala GST Law, this cess is applicable only for Kerala state customers.