The state government of Kerala has issued orders stating that it will levy a 1% 'flood' cess on most goods and services in the state from 1 June, according to a notification released on Saturday.

The Goods and Services Tax (GST) Council has permitted the state government to use the tax to raise funds to rebuild the state from the devastation wreaked by last year’s floods. The cess will be later announced in the state budget for FY19-20. With the move, the state hopes to raise about Rs 600 crores for flood redevelopment.

The cess does not cover goods and services that figure in the tax slabs below 5% and traders who have opted for composition tax also have been excluded from the cess.

Goods, such as gold, silver, and platinum ornaments, that figure in the fifth schedule of GST will have a cess of 0.25% and those in the 12,18, and 28% tax slabs will have 5%, and those above these slabs 1%.

Details of the cess collected every month should be submitted on keralataxes.gov.in and e-payments of Kerala Flood Cess due shall be along with such return, the release said.