THIRUVANANTHAPURAM: The prices of certain items will be increased in the state following the implementation of 1% cess granted by GST council for rebuilding Kerala. It has been hinted that an official statement will be made by finance minister Thomas Isaax in the assembly on January 31st.

GST council had granted permission to collect 1% cess to rebuild Kerala following the floods. Kerala will be able to collect Rs 500 cr. through this. There are GST slabs with 5%,12%,18% and 28% tax. Cess will be imposed on the two higher slabs. No clarification has been given regarding this. However, cess will be imposed on selected luxuary items. States are not allowed to increase the prices of certain items since the implementation of GST. However, Kerala can increase the prise since cess is being imposed.

State GST software should be changed in accordance with this. Cess can be imposed on alcohol. However, there is a probability for increasing the tax of alcohol since the state income hugely rely on sale of alcohol.

The prices of house equipment, electronics, luxuary items, food items, construction items, and gold are likely to increase.