Kerala Flood Cess is levied to raise the fund which is required for re-construction of the State after the devastating flood which occurred in the State during August 2018.
Kerala Flood Cess is applicable from August 01, 2019 onwards as per the Notification No. S.R.O. 436/2019 dated June 29th, 2019 for a period of two years.
Kerala Flood Cess is levied under Section 14 of Kerala Finance Act, 2019. The Kerala Flood Cess Rules are published vide Notification No. S.R.O. No. 359/ 2019 published as G.O.(P) No.80/2019/TD dated May 25, 2019.
Yes the levy of Kerala Flood Cess is duly approved and sanctioned in the 32nd meeting of GST council.
Kerala Flood Cess is applicable on the taxable value of services.

It will be levied @ 1% on taxable value of services.

Yes, this is applicable in addition to Goods and Services Tax Act

Kerala Flood Cess will be in force for a period of two years from the date of its commencement.
Kerala Flood Cess shall be levied on intra - state supplies of services made by the Company to those policyholders who are residing in Kerala and are not registered under GST.

Example: If the policy is logged in any branch of Kerala and if the policyholder’s (not registered under GST) address as per Company’s records is also of Kerala, then Kerala Flood Cess is applicable.

Example: If the policy is logged in any branch of Kerala but the policyholder’s (not registered under GST) address as updated in the Company’s records pertains to Chennai, then Kerala Flood Cess is not applicable.

Example: If the policy is logged in any branch of Kerala and the policyholder’s (not registered under GST) address in Company’s records is of Kerala, however the policyholder is working in Mumbai, Kerala Flood Cess will still be applicable.

Intra - state supply means supply of services within the same state itself i.e. From Kerala to Kerala.
This levy is applicable only where the supply is made by a taxable person to an unregistered person. Hence, if a policyholder is duly registered under GST then Kerala Flood Cess is not applicable.
This is applicable to all the premiums that become due and payable with effect from August 01, 2019 irrespective of the fact that it is first year’s premium or renewal premium.
In such scenario, the premium amount paid by the policyholder shall be kept in the policy suspense account and shall not be applied to the policy till the time full premium amount along with the Kerala Flood Cess is received by the Company in totality.
Yes, it is applicable on all products irrespective of the nature of product.
Yes, the policyholder is required to make due payment towards Kerala Flood Cess under the policy. In the absence of which, the premium paid will not be applied to the policy and will be kept in policy suspense account.
No, the amount paid towards Kerala Flood Cess will not be refunded in the event of cancellation of the policy.
Taxable value for different products is calculated as given below:
Product category Existing rate Revised rate
CGST SGST Total CGST SGST Cess Total
Term premium
9.00%
9.00%
18.00%
9.00%
9.00%
1.00%
19.00%
ULIP charges
9.00%
9.00%
18.00%
9.00%
9.00%
1.00%
19.00%
Health insurance premium
9.00%
9.00%
18.00%
9.00%
9.00%
1.00%
19.00%
Rider premium
9.00%
9.00%
18.00%
9.00%
9.00%
1.00%
19.00%
Annuity: Single premium
0.90%
0.90%
1.80%
0.90%
0.90%
0.10%
1.90%
Endowment: First year premium
2.25%
2.25%
4.50%
2.25%
2.25%
0.25%
4.75%
Endowment: Renewal premium
1.13%
1.13%
2.25%
1.13%
1.13%
0.13%
2.38%

 

COMP/DOC/Jun/2019/206/2425
 
 
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