Flood cess to be withdrawn from August 1 in Kerala, goods and services to cost less

File Photo

Thiruvananthapuram: Several items, including gold, vehicles, and domestic appliances, and certain services will cost less in Kerala from August 1.

Finance Minister K N Balagopal on Friday stated that the one-percent flood cess introduced exclusively in Kerala on August 1, 2019 will be withdrawn on Sunday, leading to the fall in prices.

As a result, around one thousand items carrying Goods and Services Tax (GST) of 12, 18 and 28 per cent will no longer carry one-per cent flood cess.

Meanwhile, the 0.25 per cent cess on gold and silver will also be withdrawn.

Check your bills from tomorrow to ensure prices are reduced

• While purchasing goods on August 1 ensure that the flood cess amount is not added to the bill.

• There will be a significant  reduction in prices of costly equipment on which flood cess was levied. Ensure that price of such items is reduced.

• Ensure that flood cess is not added to the bill while ordering goods online.

• The cess levied on gold and silver was 25 per cent.  Ensure that the cess amount is not included in the bills while purchasing gold and silver from August 1.

• While buying goods for which the customers may have reached an agreement over price earlier, ensure that the price is reduced commensurate with the withdrawal of flood cess.


Today's bill

Item - mobile phone, basic price - Rs 35,000, central GST (14 percent) - Rs 4900, state GST (14 percent) -Rs  4900, Kerala Flood Cess (1 percent) - Rs 350: Total sales price Rs 45,150

Tomorrow's bill

Item - mobile phone, basic price - Rs 35,000, central GST (14 percent) - Rs 4900, state GST (14 percent) - Rs 4900: Total sales price Rs 44,800

Cars to become cheaper from tomorrow

With the withdrawal of flood cess, the price of cars  would show a significant reduction from August 1.

Apart from the drop in prices of  cars due to lifting of cess, there will also be a reduction in one time tax payment and insurance .

For example, the price of Maruti Swift car will come down by Rs 5000 to 6000. The road tax is levied based on the basic price of vehicles, tax, and cess. The withdrawal of flood cess will reduce road tax and insurance amount as well.

With the change in overall price, some of the cars are likely to drop to the lower tax slab.

It will be profitable to buy cars that would slip to the lower tax slabs following the withdrawal of cess.

The road tax levied on cars coming under different slabs is as follows;  for cars up to Rs 5 lakh - 9 percent, up to Rs 10 lakh - 11 percent, up to Rs 15  lakhs  - 13 percent, up to  Rs 20 lakhs - 16 percent and cars above Rs  20 lakh - 21 percent. 

List of goods to become cheaper:

Item,  basic price without GST  and reduction in cess (in the following order);

Car -  Rs 8 lakh, Rs 8000.

Bike -  Rs 80,000, Rs 800

TV -  Rs 30,000, Rs 300

Refrigerator - Rs 25,000, Rs 250

Washing machine - Rs 28,000, Rs 280

Mobile phone - Rs  22,000, Rs 220

Laptop - Rs 35,000, Rs 350

Wet grinder - Rs  3600, Rs 36

Air conditioner - Rs 40,000, Rs 400

Sofa set - Rs 60,000, Rs 600

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