THE KERALA GOODS AND SERVICES TAX ACT, 2017 Notifications
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Body Notification No. 2711/Leg.A2/2019/Law. Dated, 19th July, 2019

The following Act of the Kerala State Legislature is hereby published for general information. The Bill as passed by the Legislative Assembly received the assent of the Governor on the 19th day of July, 2019.

By order of the Governor,

ARAVINTHA BABU. P. K.

Law Secretary.

Act No. 5 of 2019

EXTRACT OF THE KERALAFINANCE ACT, 2019

An Act to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2019-2020.

Preamble.-Whereas, it is expedient to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2019-2020;

Be it enacted in the Seventieth Year of the Republic of India as follows:-

1. Short title and commencement-

(1) This Act may be called the Kerala Finance Act, 2019.

(2) Save as otherwise provided in this Act, it shall be deemed to have come into force on the 1st day of April, 2019..

14. Kerala Flood Cess.-

(1) There shall be levied a cess called the Kerala Flood Cess on such intra-State supplies of goods or services or both made in furtherance of business by a taxable person as provided for in section 9 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) and collected in such manner, as may be prescribed, by rules made by the Government in this behalf, for the purposes of providing reconstruction, rehabilitation and compensation needs which had arisen due to the massive flood which occurred in the State of Kerala in the month of August, 2018, for a period of two years, with effect from the date notified by the Government in the Official Gazette:

Provided that no such cess shall be leviable on,-

(i) supplies made by a taxable person who is paying tax under section 10 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) or opted to pay tax as per G.O.(P) No.66/2019/TAXES dated 30th March, 2019 and published as S.R.O. No.256/2019 in the Kerala Gazette Extraordinary No.882 dated 30th March, 2019.;

(ii) supplies of goods or services or both wholly exempted from tax by virtue of notifications issued under section 11 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017); and;

(iii) supplies of goods or services or both made in furtherance of business by a taxable person in the State to another taxable person having goods and services tax registration in the State.

(2) The cess shall be levied on such supplies of goods and services as are specified in column (2) of the table below, on the basis of value determined under section 15 but excluding the cess levied under this section of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) at such rate set forth in the corresponding entry in column (3) of the Table.

TABLE

Sl.No	Description of goods or services or both	Rate of cess
(1)	(2)	(3)
1.	Supplies of goods for which tax rate is fixed at 0.125 % by notification issued under subsection (1) of section 9 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017).	Nil
2.	Supplies of goods for which tax rate is fixed at 1.5 % by notification issued under subsection (1) of section 9 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017).	0.25%
3.	Supplies of goods or services for which tax rate is fixed at 2.5 % by notification issued under sub-section(1) of section 9 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017).	Nil
4.	Supplies of goods or services or both for which tax rate is fixed at 6%, 9% and 14% by notifications issued under sub-section(1) of section 9 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017).	1%

(3) Every taxable person, making a taxable supply of goods or services or both, shall,-

(a) pay the amount of cess as payable under this section in such manner; and

(b) furnish such returns in such forms, along with the returns to be filed under the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) and in such manner, as may be prescribed.

(4) The provisions of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) and Central Goods And Services Tax Act, 2017 (Central Act 12 of 2017) and the rules made thereunder, including those relating to definitions, authorities, assessment, audits, non-levy, short-levy, interest, appeals, recovery of tax, offences and penalties, shall, as far as may be, mutatis mutandis, apply, in relation to the levy and collection of the cess leviable under section 9 on the intra-State supply of goods and services, as they apply in relation to the levy and collection of tax on such intra-State supplies under the said Act or the rules made thereunder.

15. Validation.-

Notwithstanding anything contained in the Kerala Local Authorities Entertainments Tax Act, 1961 (20 of 1961) any tax collected or paid under the first proviso to section 3 of the said Act at such higher rates by virtue of the provisions of the Kerala Finance Bill, 2019 (Bill No.185 of the XIV Kerala Legislative Assembly) in respect of the period with effect from 1st day of April, 2019 to the date of publication of this Act shall be deemed to have been validly collected or paid and the tax so collected shall not be refunded.