HomeNewsKerala NewsThe flood Cess in the state-imposed from today

The flood Cess in the state-imposed from today


The flood cess in the state has been rampant since today. One percent cess is levied on goods service tax. Cess is not applicable for items having GST rates below 5%. The Cess will be held for two years.

The Flood Cess was set up as part of raising funds for post-flood reconstruction. Cess is imposed on 928 products which are subject to 12, 18 and 28% freight service tax. GST rates of less than five percent, including rice, sugar, salt, fruits, and vegetables, do not apply to cess on leviable goods, hotel food, bus and train tickets. With the implementation of the cess, prices of products such as car, bike, TV, refrigerator, washing machine, mobile phone, medicines, cement, and paint will increase. The cess is one percent with the goods service tax. Gold is a quarter of a percent.

Cess applies to tax slabs of up to five percent of products. Small merchants who have an annual turnover of up to Rs 1 crore is avoided from cess.  The SEZ applies to transactions within the state. The state expects to get Rs 500 crore in a year. The government has set a target of Rs 1000 crore in two years.

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