Nation Current Affairs 01 Aug 2019 Kochi: 1 per cent fl ...

Kochi: 1 per cent flood cess kicks in on 928 products

DECCAN CHRONICLE.
Published Aug 1, 2019, 6:16 am IST
Updated Aug 1, 2019, 6:36 am IST
The additional one percent will be charged on the products and services excluded by the GST.
Around 928 products and services having GST rates above the five percent slab will become costlier with the decision. (Representional Image)
 Around 928 products and services having GST rates above the five percent slab will become costlier with the decision. (Representional Image)

Kochi: The one per cent flood-cess imposed by the state government to mop-up additional revenue of nearly Rs 2,500 crore in the next two years for reconstruction of the state has come into effect from Wednesday midnight.

Around 928 products and services having GST rates above the five percent slab will become costlier with the decision.

 

They include television sets, refrigerators, washing machines, mobile phones, laptops, electronic goods, cement, steel rods, paint, automobiles and services such as insurance premium payment. The flood-cess will not be applicable to goods and services not coming under the purview of the GST.

The additional one percent will be charged on the products and services excluded by the GST. For instance, for a product costing Rs 1,000 and 18 percent GST the consumer at present will have to pay Rs 1,180. With the one percent flood-cess it would move up to Rs 1,190. The additional flood-cess for gold ornaments will be 0.25 per cent which works out to Rs 64 per sovereign as per the existing price of gold. The price is likely to move up by Rs 71-Rs 100 per sovereign while taking into account workmanship cost for ornaments.
    
The Maruti Alto car costing Rs 300,000 will move up by another Rs 3,000 and the service tax for the insurance premium for the same vehicle is expected to be up by Rs 500.    

 

The GST council had given its approval for the state government to impose a flood-cess for two years a few months ago. The roll-out, however, has been delayed due to the time taken for making the changes in the software system. 

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