goods and service tax
The Kerala State Goods and Services Tax (SGST) Department has issued Trade Circular No. 4/2024, dated October 18, 2024, emphasizing the importance of filing and remitting the Kerala Flood Cess. This cess, established in August 2019 to aid post-flood reconstruction efforts following the catastrophic floods in Kerala, was applicable to Business-to-Consumer (B2C) supplies within the state for a designated period, expiring on July 31, 2021.
Despite the cessation of this levy period, many taxpayers have neglected to file their Kerala Flood Cess returns or remit the full payment. Such non-compliance may incur an 18% interest on overdue amounts, plus penalties equal to the unpaid sums, and could lead to revenue recovery actions.
The circular outlines specific instructions for taxpayers liable for the cess:
Return Filing: Taxpayers must file monthly returns via Form KFC-A on the Kerala State GST Department’s website (keralataxes.gov.in) and remit the cess amount along with the applicable 18% interest.
Short Payments: Any identified short payments should be addressed during annual return filings, with interest included.
Assessment Payments: Payments related to assessments or adjudications must be made through the e-treasury portal of the Government of Kerala, and not through the common GST portal or Form GST DRC 03.
Consistency in Reporting: The details of outward supplies mentioned in the KFC-A return must align with the corresponding data in GSTR-1.
Given that the Kerala Flood Cess was established to generate funds for Kerala’s reconstruction after the 2018 floods, all non-compliant taxpayers are strongly encouraged to adhere to statutory requirements by filing the necessary returns and making prompt payments. Failure to do so may result in significant legal repercussions.
Office of the Commissioner
State Goods and Services Tax Department
Government of Kerala
No. SGST/667/2024-EID3
October 18, 2024
Trade Circular No. 4/2024