KERALA VALUE ADDED TAX ACT, 2003
An Act to consolidate and amend the law relating to the levy of tax on the sale or purchase of goods based on the concept of Value Added Tax in the State of Kerala.
Whereas it is expedient to consolidate and amend the law relating to the levy of tax on the sale or purchase of goods based on the concept of value added tax in the State of Kerala:
Be it enacted in the Fifty-fourth Year of the Republic of India as follows:-
(1) This Act may be called the Kerala Value Added Tax Act, 2003.
(2) It extends to the whole of the State of Kerala.
(3) It shall come into force on such date as the Government may, by notification in the Gazette, appoint.
In this Act, unless the context otherwise requires, -
(i) "Agriculture" with all its grammatical variations cognate expressions, includes floriculture, horticulture, the raisin of crops, grass or garden produce, and also grazing; but does not include dairy farming, poultry farming, stock breeding, the mere cutting of wood or grass, gathering of fruit, raising of man made forest or rearing of seedlings or plants;
(ii) "Agriculturist" means a person (not being a company or a firm) or society including a co-operative society or association of individuals whether incorporated or not, who cultivates land personally, for the purpose of agriculture.
(iii) "Appellate Tribunal" means the Appellate Tribunal appointed under section 4;
(iv) "Assessee" means any person by whom tax or any other sum of money is payable under this Act and includes every person in respect of whom any proceedings u
(1) The Commissioner shall have and exercise all the powers and shall perform all the duties conferred or imposed upon him by or under this Act.
Provided that the Commissioner may, by an order in writing, delegate any power vested in him to any officer appointed under sub-section (3).
(2) The Commissioner shall have superintendence over all officers and persons employed in the execution of this Act and the Commissioner may, -
(a) call for returns from such officers and persons;
(b) make and issue general rules and prescribe forms for regulating the practice and proceedings of such officers and persons;
(c) issue such orders, instructions and directions to such officers and persons as it may deem fit, for the proper administration of this Act.
(3) The Government shall appoint as many Joint Commissioners, Deputy Commissioners, Deputy Commi
(1) The Government shall appoint an Appellate Tribunal consisting of a Chairman and as many other members as they think fit and such additional Appellate Tribunals, as they think fit, with such members to perform the functions assigned to the Appellate Tribunal by or under this Act.
(2) The Chairman shall be a person who is or has been a Judicial Officer not below the rank of a District Judge and the other members shall possess such qualifications as may be prescribed.
(3) Any vacancy in the office of a member of the Appellate Tribunal shall be filled by the Government.
(4) The functions of the Appellate Tribunal may be performed,
(i) by a Bench consisting of the Chairman and any other member; or
(ii) by a Bench consisting of the Chairman and two other members; or
(iii) by a Bench consisting of two or more members other than the Chairman
Notwithstanding anything contained in this Act, the Appellate Tribunals appointed under the Kerala General Sales Tax Act, 1963 (Act 15 of 1963) shall have the power to hear and dispose of appeals filed under this Act, in such manner as may be prescribed, as if they are appointed under this Act.
(1) The Government may appoint a Settlement Commission consisting of a Chairman and as many other members as they think fit, to perform the functions assigned to the Settlement Commission by or under this Act. The Chairman shall be a person who is a judicial Officer not below the rank of a District judge and the other members shall possess such qualifications as may be prescribed;
(2) Any vacancy in the office of the members of the Settlement Commission shall be filled by the Government.
(3) The functions of the Settlement Commission may be performed -
(i) by a bench consisting of the Chairman and any other member; or
(ii) by a bench consisting of the Chairman and two other members; or
(iii)by a bench consisting of two or more members other than the Chairman.
(4) Any member who has previously dealt with any case coming up before the Comm
(1) Every dealer whose total turnover for a year is not less than ten lakh rupees and every importer or casual trader or agent of a non-resident dealer, or dealer in jewellery of gold, silver and platinum group metals or silver articles or contractor or any State Government, Central Government or Government of any Union Territory or any department thereof or any local authority or any autonomous body whatever be his total turnover for the year, shall be liable to pay tax on his sales or purchases of goods as provided in this Act. The liability to pay tax shall be on the taxable turnover, -
(a) in the case of goods specified in the Second and Third Schedules at the rates specified therein and at all points of sale of such goods within the State and in the case of aerated branded soft drinks excluding soda at the rate of twenty per cent at all points of sale within the State.
(b) Omitted.
(c) in the case
Notwithstanding anything contained in section 6, every dealer shall pay turnover tax at the rate of two percent, on the turnover of sales of textile articles included in serial numbers 17 A, 46A, and 51 of the First Schedule.
Provided that a dealer whose tunover of sale of such textiles in the State for the previous year is below rupees one crore, shall not be liable to pay turnover tax under this section:
Provided further that this levy would be applicable even if, the constitution of the business has been changed in the current year to proprietorship, firm or association of persons consisting of the proprietor, partner, director or persons of the dealer for the previous year.
Notwithstanding anything contained in any other provisions of this Act, where a dealer allows any trade discount or in terms of quantity in goods in relation to any sale effected by him, the quantity so allowed as trade discount or incentive, shall be deemed to be a he dealer, who allows such trade discount or incentive and a purchase by the dealer who receives such trade discount or incentive and such sale shall form part of the sale in relation to which such trade discount or incentive is allowed.
Notwithstanding anything contained in section 6-
(a) (i) any works contractor not being a dealer registered under the provisions of the Central Sales Tax Act, 1956 (Central Act74 of 1956), and who is not an importer may, at his option, instead of paying tax in accordance with the provisions of the said section, pay tax at three per cent of the whole contract amount;
(ii) any works contractor not falling under clause (i) above may, at his option, instead of paying tax in accordance with the provisions of the said section, shall pay tax at three per cent of the contract amount after deducting the purchase value of goods excluding freight and gross profit element consigned into the State on stock transfer or purchased from outside the State and for the purchase value of goods so deducted shall pay tax at the scheduled rate applicable to such goods.
Provided that notwithstanding anything contained in sub-c
The burden of proving that any transaction of a dealer is not liable to tax under this Act shall lie on such dealer.
(1) Every awarder shall deduct from every payment, including advance payment, made by him to any works contractor liable to pay tax under section 6, in relation to any works contract awarded, the tax payable by the contractor in respect of such contract under that section, whether the transfer of goods involved in the execution of works contract is in the form of goods or not, and remit it to Government, in the prescribed manner, on or before the fifth day of the month succeeding the month in which such deduction is made. Every such awarder shall also file such return as may be prescribed.
Provided that in respect of works contract executed under the Sampurna Gramin Rozgar Yojana or the Beneficiary Committees using the Member of Parliament / Member of Legislative Assembly Funds or Natural Calamity Relief Funds of Sarva Siksha Abhiyan Funds, where the total amount in respect of individual contract does not exceed ten lakh rupees, the maximum amou
(1) Subject to the other provisions of this section, any registered dealer, liable to tax under sub- section (1) of section 6, shall be eligible for input tax credit.
(2) In respect of capital goods purchased by a dealer, the value of which exceeds such limit as may be prescribed, input tax credit shall be allowed over a period of three years from the date of commencement of commercial production or from the date from which the capital goods are put to use, whichever is later, in such manner and subject to such conditions as may be prescribed.
Provided that input tax credit on capital goods for industrial units including those which have undertaken expansion, diversification or modernization shall be allowed over a period twelve months from the date of commencement of commercial production or from the date from which the capital goods are put to use, whichever is earlier from 1st day of April, 2006.
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(1) In calculating the net tax payable by a dealer for a return period there shall be deducted from the tax payable for the return period, a sum equal to -
(a) the tax paid under sub-section (2) of section 6; and
(b) the tax paid under section 3 of the Tax on Entry of Goods into Local Areas Act, 1994 (15 of 1994) on the import of any goods, other than those included in the fourth schedule; where such goods are intended for resale or for use in the manufacture of taxable goods or for use in the execution of works contract or for use as containers or packing materials for the packing of taxable goods in the state:
Provided that where the special rebate is in respect of capital goods, the same shall be allowed over a period of three years and all the conditions and restrictions applicable to input tax credit under subsection(2) of section 11 shall apply to the special rebate under this section also:
(1) Every sale in the course of export shall be a zero rate sale.
(2) Where input tax has been paid in respect of the purchase of any goods including capital goods, except those goods coming under the Fourth Schedule, and such goods are either,-
(i) sold in the course of export; or
(ii) sold in the course of inter-State trade or commerce; or
(iii) sent to outside the State otherwise than by way of sale in the course of inter- State trade; or
(iv) (a) used or consumed in the manufacture of goods, other than those falling under the Fourth Schedule, or used as containers or as packing materials for such goods and such manufactured goods are sold in the course of export; or
(b) used or consumed in the manufacture of taxable goods or used as containers or as packing materials of such goods manufactured and such manufactured goods are sent out
Where tax has been collected by any dealer in the State on any sale effected under this Act to any official or personnel of, -
(a) any foreign diplomatic mission or consulate in India ; or
(b) the United Nations or any other similar international body, entitled to privileges under any convention to which India is a party or under any law for the time being in force; or
(c) any consular or diplomatic agent of any mission, the United Nations or other body the tax so collected shall be reimbursed to such person, mission, United Nations or other body in such manner as may be prescribed.
(1) Every dealer whose total turnover in any year is not less than five lakh rupees shall, and any other dealer may, get himself registered under this Act.
(2) Notwithstanding anything contained in sub-section (1)
(i) every casual trader;
(ii) every dealer, registered under the Kerala General Sales Tax Act, 1963 (15 of 1963) immediately before the date of commencement of this Act, whose total turnover under the said Act for the year preceding such date was not less than the limit specified under sub-section (1);
(iii) every dealer registered under sub-section (3) of section 7 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956);
(iv) every dealer who in the course of his business obtains or brings goods from outside the State or effect export of goods out of the territory of India;
(v) every dealer in bullion or specie or in jewel
Where a dealer liable to be registered under this Act has failed to inform the registering authority of his liability to be registered, the registering authority, after conducting such survey, inspection or enquiry, as may be prescribed, proceed to register such person as a dealer under this Act and thereupon all the provisions of this Act and the Rules made there under, shall be binding on such person however, such dealer shall not be entitled to any benefits accruing from such registration.
Notwithstanding anything contained anywhere in this Act, dealers who had voluntarily applied for registration under the Act for the period from 15th December, 2007 to 31st March, 2008 would be entitled to,-
(a) get registration with effect from the date of commencement of business irrespective of the date of application;
(b) claim input tax credit on their purchases covered under bills /invoices of registered dealers within the State from the date of commencement of business; and
(c) pay tax under sub - section ( 5 ) of section 6, subject to eligibility, or pay tax under section 8 for the relevant years subject to eligibility and filing application for compounding along with the registration application:
Provided that such dealers shall be liable to pay interest on all dues and will not be entitled for any refund relating to the period prior to filing of registration application.<
(1) Any person who intends to establish an industrial unit may get himself registered under this section.
(2) Every application for registration of an Industrial Unit shall be supported by a certificate in the prescribed form issued by the Director of Industries and Commerce, the Kerala State Industrial Development Corporation or the Kerala Financial Corporation.
(3) A provisional registration certificate shall be issued to the applicant within seven days from the date of application.
(4) The form of application, form of provisional registration certificate, the fee for registration, the conditions and the authority empowered to issue such certificates shall be such as may be prescribed.
(5) The provisional registration certificate issued under this section shall facilitate the holder for procurement of all materials for construction and establishment of the Industrial Unit, inclu
(1) An application for registration shall be made to such authority, in such manner and within such period as may be prescribed and shall be accompanied by a fee as specified in the table below. -
Provided that a dealer getting registered under clause (ii) of sub- section (2) of section 15 shall not be required to pay the registration fee specified in this sub-section; but only the fee for renewal of registration specified under sub-section (7):
Provided further that where the dealer is an authorized retail or wholesale distributor of rationed articles under the Kerala Rationing Order, 1966, his total turnover for the purpose of this sub- section shall not include the turnover in respect of such goods:
Provided also that in the case of casual trader, the minimum registration fee to be paid shall be two thousand five hundred rupees per month and the maximum period of validity of registration certificate
(1) Where the registering authority has reasons to believe that a dealer is likely to make default in payment of tax or other amount due under this Act, he may, by order in writing, demand security from the dealer for an amount not exceeding one half of the tax, payable on the turnover of the dealer for the year as estimated by the registering authority.
(2) Notwithstanding anything contained in sub-section (1), the registering authority may, at the time of registration, demand security by order in writing, from every dealer effecting first sale of goods within the State, an amount not exceeding one half of the tax payable on the turnover of the dealer for the year as estimated by the registering authority.
Provided that the registering authority shall have the power to demand at any time additional security if such authority has reason to believe that the turnover estimated under sub- sections (1) or (2) was too low.
(1) Notwithstanding anything contained in any other provisions of this Act, the Deputy Commissioner may, if he is satisfied that any dealer has violated the condition of a registration certificate issued to such dealer or that he has violated any of the provisions of this Act or the rules made there under or has prevented or obstructed or abetted the prevention or obstruction of any survey, inspection, entry, search or seizure by an officer empowered under this Act, without prejudice to any other action that may be taken against him under this Act, by order, suspend the registration of such dealer for such period not exceeding six months as may be specified in the order.
(2) Notwithstanding anything contained in sub-section (1) where a dealer registered under this Act has evaded tax exceeding one lakh rupees during an year, the Deputy Commissioner may, without prejudice to any other action that may be taken against him under this Act, by an orde
(1) Notwithstanding anything contained in section 11, where any dealer who is a sole proprietor registered under this Act dies and his legal heir continues the business, then, if such a legal heir is not a registered dealer, he shall, within four months from the date of death of the dealer, obtain registration under this Act.
(2) The legal heir who continues the business shall apply to the assessing authority with the consent of all other legal heirs, if any, of the deceased dealer for recognition of continuance of the business for the purposes of filing returns, payment of tax, input tax credit, special rebate, payment of tax under section 8 and the continuance of the registration number under this Act.
(3) The assessing authority shall, after making necessary enquiries on an application under sub-section (2), pass orders on the same with in fifteen days from the date of receipt of such application.
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time incentive to new registrants : - Notwithstanding anything contained in this Act, dealers who were liable to take registration under this Act, but had not taken registration, may voluntarily take registration between 1st April 2013 and 31st August 2014 and such dealers shall not be liable to tax or penalties with respect to the transactions prior to 1st April 2013:
Provided that this section shall not be applicable to the transactions of dealers who were
(a) Importers
(b) Works Contractors
(c) Manufacturers, but excluding dealers coming under sub clause (i) of clause (c) of section 8.
(d) other dealers referred to in sub-section (1) of section 6
(e) Companies; and
(f) dealers against whom penal proceedings were initiated for non-registration and non-payment of tax under this Act, before 1st April 2014.
(1) Notwithstanidng anything contained in section 6 and section 18B, hospitals run by charitable institutions shall be exempted from tax on the sale of medicines, laboratory store items and consumables, to their patients during the course of treatment, subject to the following conditions, namely:-
(a) They shall, on payment of a fee of ten thousand rupees, obtain a certificate from the Commissioner for an year, based on the orders of exemption applicable to charitable institutions under the Income Tax Act, 1961 (Central Act 43 of 1961).
(b) The hospital availing exemption as per this sub-section shall purchase only medicines which had suffered tax on the maximum retail price as per clause (e) of section 8 of this Act and with regard to other laboratory store items and consumables, only form dealers registered under this Act:
Provided that for the period up to 31st March, 2013, the exemption would be ma
(1) Every registered dealer who transacts business at places other than his registered place or places of business or employs a traveling salesman or representative to transact business as aforesaid, shall obtain a permit issued under this Act authorizing himself or permitting him to authorize, the traveling salesman or representative so to do.
(2) The entire turnover of business carried on under the permit shall be included and accounted for by the registered dealer in his accounts and returns and shall be dealt with as if it were the turnover of business done by the registered dealer himself at the registered place of business.
(3) Every permit holder shall carry the permit with him and shall produce it on demand by any officer of the Commercial Tax Department empowered by the Government in this behalf. He shall maintain and produce on demand to any such officer a true and correct account of all the transactions carried o
Every registered dealer satisfying the criteria, as may be prescribed, may be issued a Green Card for such speeding up clearances of his consignments at the check posts and such other purposes as may be prescribed.
(1) Every registered dealer and every dealer liable to be registered under this Act shall submit to the assessing authority such return or returns before such dates and in such manner and accompanied by such documents as may be prescribed.
(2) In case of a dealer having more than one place of business, the aggregate turnover of all such places of business shall, subject to the provisions of sub-section (3), be taken as the turnover of the business for the purposes of this Act.
(2A). Every dealer registered under this Act and every others required to file their returns under this Act shall file their returns as well as purchase and sale list through electronic filing in addition to the hard copy to be filed along with the returns:
Provided that the Commissioner may, in the interest of tax administration, exempt such class or classes of dealers or others as may be prescribed, from electronic filing of re
The Deputy Commissioners having jurisdiction over the area may, for valid and sufficient reasons, to be recorded in writing, condone delay,- .
(a) in applying for any refund under this Act and Rules made there under,
(b) in filing options under section 8 of this Act up to 31 December, 2008 for the years 2005-06, 2006-07 and 2007- 08:
Provided that the time limit for completion of any assessment under this Act shall be extended by a further period of three years from the date of condoning such delay, under this section.
Where the return submitted under sub- section (1) of section 20 is in the prescribed manner and accompanied by the prescribed documents, the assessment relating to the return period shall, subject to the provisions of sections 22, 24 and section 25, be deemed to have been completed on the receipt of such return.
(1) Where the return submitted under sub- section (1) of section 20 is not in the prescribed manner or not accompanied by the prescribed documents or with incorrect particulars, the assessing authority shall, after recording its reasons, reject the return with due notice to the dealer.
Provided that the payment of any tax declared as payable as per the return shall be provisionally accepted.
(2) A dealer whose return is rejected under sub-section (1) may, file a fresh return curing the defects in such manner and with in such time as may be prescribed file a fresh return curing the defects in such manner and accompanied by such documents as provided under sub-section (1) of section 20 together with proof of payment of interest on the tax payable at the rates provided under section 31 for the period from the due date of filing of return till the date of filing of such fresh return. On the receipt of such return by the assessi
(1) The Government or any authority or officer empowered by them in this behalf may designate any officer not below the rank of a Deputy Commissioner to conduct audit visit at the business place of any dealer and to audit an y returns books of accounts, any other records or stock statements and goods relating to the business either by himself or through audit officers not below the rank of an assessing authority. The officer so designated and the audit officers shall follow the procedure as may be notified by Government.
(2) The audit officers shall have all the powers of an assessing authority.
(3) The designated Officer may, by an order in writing, authorize not less than two audit officers to visit the place of business of any dealer and audit any returns, books of accounts any other records, stock statements and goods relating to any return period'
(4) The audit officer authorized in this behalf ma
(1) Notwithstanding anything contained in any other provision of this Act, if any dealer.
(a) is found on audit of his books of accounts other records or otherwise, to have submitted incorrect or incomplete return for any return period; or
(b) fails to make available any accounts or other records required by the audit officer for audit in the business place of the dealer or
(c) fails to prove the claim of input tax credit, special rebate or refund claimed, the audit officer may, at any time within three years from the last date of the year to which the return relates, after conducting such enquiry as he may deem necessary, reject the returns of such return periods and complete the assessments to the best of judgement.
Provided that no assessment under this section shall be completed without affording the dealer an opportunity of being heard.
Provided further
(1) Where for any reason the whole or any part of the turnover of business of a dealer has escaped assessment to tax in any year or return period or has been under- assessed or has been assessed at a rate lower than the rate at which it is assessable or any deduction has been wrongly made there from, or where any input tax or special rebate credit has been wrongly availed of, the assessing authority may, at any time within five years from the last date of the year to which the return relates, proceed to determine, to the best of its judgement, the turnover which has escaped assessment to tax or has been under assessed or has been assessed at a rate lower than the rate at which it is assessable or the deduction in respect of which has been wrongly made or input tax or special rebate credit that has been wrongly availed of and assess the tax payable on such turnover or disallow the input tax or special rebate credit wrongly availed of, after issuing a notice on the dea
Notwithstanding anything contained in this Act, Where an objection has been raised by the Comptroller and Auditor General of India in respect of an assessment or reassessment made or scrutiny of any return field under this Act, and if the assessing authority is satisfied that such objection is lawful, the assessing authority shall proceed to re-assess the dealer or dealers with respect to whose assessment or reassessment or scrutiny as the case may be, the objection has been made. Provided that no order under the section shall be passed without giving the dealer an opportunity being heard.
(1) In cases where tax evasion has been detected and the offence has been compounded or penalty has been imposed under this Act, the assessment under the provisions of this Act shall be done only on the suppressed turnover detected:
Provided that in cases where pattern of suppression has been established, the assessment shall be completed by adding fifty percent of the suppressed turnover.
(2) In case of assessments initiated from the scrutiny of electronically filed returns, annexures and other declarations,-
(a) with respect to unaccounted purchases from registered dealers within the State by dealers, notwithstanding anything contained in this Act, input tax credit shall be granted on such purchases, provided the dealer admits such purchases. In such cases, assessment shall be completed by adding 20 percent gross profit on the purchase value.
(b) In case of detection of suppress
Notwithstanding anything contained in section 24 or in section 25, in cases were an investigation or inquiry is pending under this Act of any other law or where any assessment cannot be completed with in the period specified under the said sections, the Deputy Commissioner may, for good and sufficient reasons, extend the period of completion of the assessment beyond the period specified in those sections.
Notwithstanding anything contained in sub-section (4) of section 11 or sub-section (2) of section 12, if any assessment or other proceeding is initiated by the assessing authority denying the eligibility of a dealer to pay presumptive tax for violation of conditions enumerated in subsection (5) of section 6, such dealer shall be granted input tax credit or special rebate, as the case may be.
Notwithstanding anything contained in this Act, a dealer in bakery products, sweets, confectionary and other food products sold under brand name registered under the Trade Marks Act, 1999, who had not remitted the tax as per the prescribed rate, for the period up to the of tax from 1st April, 2016 to 31st March, 2017 and shall pay the amount within a period of two years in equal quarterly instalments and those who opt for payment of tax under this Scheme shall be exempted from payment of interest and penalty due thereon subject to such conditions and restrictions, as may be prescribed.]
(1) Notwithstanding anything contained in this Act or rules made thereunder or in any judgment, decree or order of any court, tribunal or appellate or revisional authority or any assessment orders or penalty orders issued under this Act, the dealers who have opted to pay tax under sub-section (5) of section 6 and with regard to whom unaccounted purchases have been detected by the assessing authority for the period up to 31st March, 2016, may opt to settle their cases by paying tax at the scheduled rates on such unaccounted purchases with an addition of 5% gross profit and on payment of such tax, all penalties and interest including penalty under sub-section (7) of section 22, shall stand waived and it shall be subject to the following conditions, namely:-
(a) Any dealer who opt for this scheme shall obtain Tax payers Identification Number (TIN) under this Act with effect from 1st April, 2016;
(b) All pending cases in any Fo
Notwithstanding anything to the contrary contained in any judgement, decree, order, direction or decision of any Court, Tribunal or other Authority, where the assessing authority has reason to believe that any person is, or was carrying on business in the name of, or in association with any other person, either directly, or indirectly, whether as agent, employee, manager, power of attorney holder, guarantor or in any other capacity, such person and the person in whose name the registration certificate, if any, is taken, shall jointly and severally, be liable for the payment of the tax, penalty or other amount due under this Act which shall be assessed, levied and recovered from all or any of such person or persons, as if such person or persons are dealers:
Provided that before taking action under this section, the persons concerned shall be given a reasonable opportunity of being heard.
Where a dealer dies, his executor, administrator, or other legal representative shall be deemed to be the dealer for the purposes of this Act, and the provisions of this Act shall apply to him in respect of the business of the said deceased dealer, provided that, in respect of any tax, fee or other amount assessed as payable by any such dealer or levied on him or any tax, fee or other amount which would have been payable by him under this Act if he had not died, the executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hands.
(1) Where any firm is liable to pay any tax, fee or other amount under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment.
(2) Where a partner of a firm liable to pay any tax, fee or other amount under this Act retires, he shall, notwithstanding any contract to the contrary, be liable to pay the tax, fee or other amount remaining unpaid at the time of his retirement and any tax, fee or other amount due up to the date of retirement, though unassessed.
(1) Where any business carried on by a firm is discontinued or where a firm is dissolved, the assessing authority shall make an assessment of the taxable turnover of, and determine the tax payable by, the firm as if no such discontinuance or dissolution had taken place, and all the provisions of this Act, including the provisions relating to levy of penalty or any other amount payable under any provisions of this Act, shall apply, so far as may be, to such assessment and determination.
(2) Without prejudice to the generality of sub-section (1), if the assessing authority in the course of any proceedings under section 75 in respect of any such firm as is referred to in that sub-section is satisfied that the firm was guilty of willful non- disclosure of assessable turnover, it may direct payment of a penalty in accordance with the provisions of sub-section (2) of that section.
(3) Every person who was, at the time of such dis
(1) A registered dealer may, subject to the provisions of sub-sections (2) and (3), collect tax at the rates specified under section 6 on the sale of any goods, from the person to whom he sells the goods and pay it over to Government in such manner as may be prescribed.
(2) Dealers registered under this Act, except those dealers paying presumptive tax under sub-section (5) of section 6 and those paying tax under clause (a) o f section 8 b y those undertaking works of Government of Kerala, Kerala Water Authority and Local Authorities, and under clause (b), clause (c) (ii) and clause (d) of section 8 alone shall be eligible to collect any sum by way of, or purporting to be by way of tax under this Act.
Provided that the dealers who are paying tax under sub- section (5) of section 6 are entitled to recover from the buyers the amount of tax paid by him on the purchase value of such goods at the time of purchase.
(1) Every dealer liable to pay tax under this Act for any return period shall pay tax within such period, as may be prescribed.
(2) In the case of a dealer from whom any tax or other amount is demanded shall pay tax in such manner and in such installments, if any, and within such time, as may be specified in the notice of demand, not being less than fifteen days from the date of service of the notice:
Provided that the time limit of fifteen days for a notice under this sub-section shall not apply to casual traders.
(3) If default is made in payment under sub-section (2), the whole of the amount outstanding on the date of the default shall become immediately due and shall be a charge on the properties of the person or persons liable to pay the tax or other amount under this Act:
(4) Any tax or any other amount due under this Act from a dealer or any other person may, without prejud
(1) Notwithstanding anything contained in this Act or rules made thereunder or in any judgment, decree or order of any court, tribunal or appellate authority, any assessee who is in arrears of tax or any other amount due under this Act or under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) relating to the period up to and including 30th June, 2017, may opt for settling the arrears on payment of the principal amount of the tax in arrears by availing a complete reduction of the penalty amount, interest on the tax amount and on the penalty amount:
Provided that in case where the evidence, details and records pertaining to the penalty levied is not utilized or not liable to be utilized for any best judgment assessment under this Act, the demand relating to such penalty shall be settled under this section on payment of applicable tax relating to the penalty as determined by the assessing authority.
(2) Notwithstanding
(1) Where the Government had granted any exemption in respect of the tax payable by any industrial unit under the Kerala General Sales Tax Act, 1963 (15 of 1963) or, the Kerala Surcharge on Taxes Act, 1957 (11 of 1957) for any specified period under any notification issued under section 10 of the Kerala General Sales Tax Act, 1963 (15 of 1963) under the Industrial policy of the State, or where any application or other proceedings is pending on the date of commencement of this Act, such exemption granted or due to be granted shall have operation only till the day preceding the date of commencement of this Act:
Provided that the Government may, by notification, which may be subject to such conditions and restrictions as may be specified therein, order to defer the payment of the whole or any part of the tax payable by such industrial units under this Act, which shall not be more than the unavailed portion of the exemption to which such unit would
(1) The Government may, by notification in the Gazette, appoint any Assistant Commissioner to exercise the functions of a Collector under the Kerala Revenue Recovery Act, 1968 (15 of 1968) for the recovery of arrears due under this Act.
(2) Notwithstanding anything contained in any other law for the time being in force, an officer appointed under sub-section (1) shall be deemed to be a Collector within the meaning of clause (c) of section 2 of the Kerala Revenue Recovery Act, 1968 (15 of 1968).
Penalty payable under this Act shall be deemed to be a tax under this Act for the purpose of collection and recovery and shall be recoverable without prejudice to the institution of any proceeding for prosecution for an offence under this Act.
(1) The assessing authority may, at any time or from time to time by notice in writing (a copy of which shall be forwarded to the dealer at his last address known to the assessing authority) require any court or any officer of the Central Government or of the Government of any State or Union Territory or any other person (other than an individual) from whom money is due or may become due to the dealer or any court or any such officer or any other person (other than an individual) who holds or may subsequently hold money for or on account of the dealer, to pay to the assessing authority, either forthwith if the money has become due or is so held or within the time specified in the notice (not being before the money becomes due or is held), so much of the money as is sufficient to pay the amount due by the dealer in respect of arrears of tax, fee or penalty or the whole of the money when it is equal to or less than the arrears of tax, fee or penalty.
Where the ownership of the business of a dealer liable to pay tax or other amount is transferred, any tax or other amount payable under this Act in respect of such business and remaining unpaid at the time of the transfer and any tax or other amount due up to the date of transfer, though un assessed may, without prejudice to any action that may be taken for its recovery from the transferor, be recovered from the transferee as if he were the dealer liable to pay such tax or other amount:
Provided that the recovery from the transferee of the arrears of tax due for the period prior to the date of the transfer shall be limited to the value of the assets he obtained by transfer.
Where, during the pendency of any proceedings under this Act or after the completion thereof, any assessee creates a charge on, or parts with the possession (by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever) of any of his assets in favour of any person, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the assessee under this Act.
Notwithstanding anything to the contrary contained in any other law for the time being in force, any amount of tax, penalty, interest and any other amount, If any, payable by a dealer or any another person under this Act, shall be the first charge on the property of the dealer, or such person.
Where any tax or other amount recoverable under this Act from any private company, whether existing or wound up or under liquidation, cannot be recovered for any reason whatsoever, every person who was a director of such company at any time during the period for which the tax or other amount is due under this Act shall be jointly and severally liable for the payment of such tax or other amount unless he proves that the non-recovery cannot be attributed to any negligence, misfeasance or breach of duty on his part in relation to the affairs of the company.
Every person registered under this Act, every dealer liable to get himself registered under this Act, every awarder other than Government Departments and Local Authorities, where the cost of the work exceeds one crore rupees and every other dealer who is required so to do by the authority by notice served in the prescribed manner shall keep and maintain true and correct accounts and such other records as may be prescribed, in Malayalam, Tamil, Kannada, or English relating to his business, showing such particulars as may be prescribed. Different particulars may be prescribed for different classes of dealers.
Provided that dealers shall be permitted to use electronic billing and accounting subject to such restrictions and conditions as may be prescribed.
Provided further that auctioneers acting as agents and effecting auction sale shall maintain in such manner, as may be prescribed, the details of such goods received for auct
(1) Every dealer registered or liable to get himself registered under this Act shall compulsorily issue a bill or an invoice or cash memorandum in respect of every sale of goods liable to tax under this Act involving transaction amounting to not less than one hundred rupees.
(2) Where a dealer effects taxable sale, he shall furnish the name and address of the purchaser in the sale bill/invoices, and where the sale is to a dealer, the address shall include TIN or PIN, as the case may be.
(3) Where the TIN or PIN details are not furnished as specified in sub- section (2), such dealer shall be liable for payment of the tax on the Maximum Retail Price (MRP) of such goods, where it is ascertainable.
(1) Where subsequent to any sale of taxable goods effected by a dealer the purchaser has returned the goods covered by the tax invoice fully or partly, within the period permitted by this Act or the Rules made there under, the dealer effecting the sale shall issue, forthwith, to the purchaser a credit note containing such particulars as may be prescribed.
(2) Where a tax invoice or a bill of sale has been issued as per the provisions of this Act or the Rules made there under and the tax payable in respect of the sale is more than the amount shown as tax charged in such tax invoice or sale bill, as the case may be, the dealer making such sale shall issue to the purchaser a debit note containing such particulars as may be prescribed.
(1) Every dealer whose total turnover in a year exceeds rupees sixty lakhs shall get his accounts audited annually by a Chartered Accountant or Cost Accountant and shall submit copy of the audited statement of accounts and certificate, in the manner prescribed.
Provided that a co-operative society registered or deemed to be registered under the Kerala Co-operative Societies Act, 1969 (21 of 1969), may in lieu of the statement and certificate mentioned above, submit a copy of the audited statement of accounts and certificate issued by the Registrar of Co-operative Societies on or before 31st day of December of the year succeeding to the year to which annual return relates.
[Provided also that with respect to units of Kerala State Electricity Board Ltd. which obtained separate registration as per sub-section (3) of section 20 shall file trial balance for each such units, along with audited statement of accounts and certificat
Any officer not below the rank of an assessing authority may, for the purpose of survey for ascertainment of commencement of liability for registration under this Act, enter any place of business and require the dealer, employee or any other person who may at that time helping in carrying on such business, to provide necessary facility -
(i) to inspect books of accounts or documents relating to the business, and
(ii) to check or verify the cash and stock of goods which may be found therein, and
(iii) to furnish such information including such statement relating to any matter which may be useful for or relevant to any proceedings under this Act and the dealer, employee or any other person shall comply with such requirements.
Provided that no residential accommodation (not being a shop - cum residence) shall be entered into or inspected unless such officer is specially authorized in
(1) An officer not below the rank of an assessing authority may, for the purposes of this Act, by notice, require any dealer,
(a) to produce or cause to be produced before him any accounts, registers, records or other documents; or
(b) to furnish or cause to be furnished any other information, relating to his business, and such dealer shall comply with such requisition.
(2) Any officer, not below the rank of an assessing authority may,
(a) enter any place of business; and
(b) inspect any accounts, registers, records or other documents relating to his business and the goods in his possession.
(3) If any officer not below the rank of an assessing authority has reason to believe that a dealer is trying to evade any tax under this Act, he may, for reasons to be recorded, enter and search,-
(a) the place of business of t
The assessing authority or any other officer empowered in this behalf by the Government, is satisfied that any dealer with a view to evade payment of tax, shows in his accounts, sale or purchase of any goods at prices lower than the prevailing market price of such goods, shall have the power to purchase such goods at a price of ten per cent above the purchase value or the value disclosed by any principal or agent in the case of goods received on consignment basis plus transporting charges and entrust such goods for sale to the Kerala State Civil Supplies Corporation Ltd. or Kerala State Marketing Federation Limited or to any such public distribution system or sell such goods in public auction.
(1) If the Government consider that with a view to prevent or check evasion of tax under this Act in any place or places in the State it is necessary so to do, they may by notification in the Gazette notify such areas, hereinafter referred to as the notified area, and may direct setting up of check posts at such place or places, and define the boundaries of such notified area and may demarcate such boundaries by means of barriers or otherwise for the purpose of regulating the passage of goods across the notified area.
(2) If the Commissioner is satisfied that for the purpose of preventing evasion of tax, check posts are to be set up for a specified period or periods, he may for reasons to be recorded in writing, set up such check posts and all other provisions relating to the check posts mentioned in sub-section (1) shall be applicable to such check posts also.
(3) Subject to the provisions of sub-section (4) no person shal
(1) The driver or other person in charge of a vehicle or vessel shall stop the vehicle or vessel and any person referred to in sub-section (4) of section 46 shall stop or, as the case may be, stop the animal at any place within a notified area when so required by the officer in charge of that notified area, or at any other place when so required by any officer empowered by the Government in that behalf, for the purpose of enabling such officer to verify the documents required by sub-section (3) of section 46 to be in the possession of the person transporting the goods and to satisfy himself that there is no evasion of tax.
(1A) Notwithstanding anything contained in section 3 of this Act, or in The Kerala Panchayat Raj Act, 1994 (13 of 1994), where there is reason to believe that a goods-laden vehicle has by-passed the check post and entered in the State, it shall be lawful for an elected member or an officer authorized by resolution by a Grama P
(1) When a vehicle or vessel carrying goods from any place outside the State and bound for any place outside the State passes through the State, the owner or consignor of goods or owner or driver or person in charge of such vehicle or vessel shall obtain a transit pass in the prescribed form for such goods from the officer-in-charge of the first check post after his entry into the State and deliver it to the officer-in-charge of the last check post before his exit from the State.
(2) If the owner or consignor of goods or owner or driver or person in charge of such vehicle or vessel fails to deliver the transit pass for such goods referred to in sub-section (1) to the last check post, it shall be presumed that such goods which are liable to tax under this Act and the goods have been delivered within the State for sale:
Provided that where the goods carried by such vehicle or vessel are, after their entry into the State, tran
(1) Any officer, not below the rank of a Commercial Tax Officer shall have the power to intercept and search the vehicle or vessel or any conveyance transporting notified goods at any place within the State for the purpose of enabling such officer to verify whether any notified goods are being smuggled into or out of the state.
(2) If on verification such officer has reason to suspect that the notified goods are being smuggled into or out of the state, he may, without any unreasonable delay, produce the goods and the vehicle before such officer authorized by the Government, by notification in the Gazette, not below the rank of an Assistant Commissioner.
(3) Where the authorized officer is satisfied that the driver or other person in charge of the vehicle or vessel or other conveyance is smuggling notified goods, the officer shall have the power to seize and detain the goods along with the vehicle or vessel.
Any officer authorized under the provisions of this Act to conduct inspection, search or seizure of any vehicle or vessel, goods, business place residential accommodation or any other place, if he feels necessary to have police assistance for the effective conduct of such inspection, search or seizure may seek police assistance from the officer in charge of the police station or from his superior officer having jurisdiction over the area where inspection, search or seizure is to be conducted or is being conducted and thereupon such police officer shall render such assistance to the officer as may be required for the conduct of such inspection, search or seizure.
(1) Notwithstanding anything contained in section 49, the authorized officer may direct the sale of any goods seized under that section which is subject to speedy and natural decay and remit the sale proceeds in to the Government Treasury.
(2) The authorized officer may deal with the proceeds of the sale of goods under sub-section (i) in the same manner as he might have dealt with the goods if it had not been sold.
The owner or other person in charge of a vehicle or vessel shall, while transporting any consignment of goods exceeding such quantity or value as may be prescribed under sub - section (3) of section 46, carry with him, -
(i) a tax invoice, delivery note or certificate of ownership; and
(ii) such other documents as may be prescribed, relating to the goods under transport and containing such particulars as may be prescribed and shall submit the documents aforesaid or copies thereof to the prescribed authority, having jurisdiction over the area in which the goods are delivered, along with such return within such time as may be prescribed
Every clearing or forwarding house or agency, transporting agency, shipping agency, shipping out agency, railway authorities, air cargo authorities or steamer agency in the State shall submit to the assessing authority of the area such returns and information as may be prescribed of all goods cleared, forwarded, transported, or shipped by it. The assessing authority concerned shall have the power to call for and examine the books of account or other documents in the possession of such agency with a view to verify the correctness of the returns submitted and the agency shall be bound to furnish the books of account or other documents when so called for.
Every bank, including any branch of a bank or any banking institution in the State, shall submit to the assessing authority of the area, a return of all bills relating to goods discounted, cleared or negotiated by or through it, in such form, in such manner and within such time, as may be prescribed.
Every warehouseman and every bank, including any branch of a bank or any banking institution in the State, shall, if so required by an officer not below the rank of an assessing authority, furnish such information, document or statement as he may consider necessary for the purpose of any proceedings under this Act.
(1) Any person aggrieved by any order issued or proceedings recorded other than those under sub-section (3), sub-section (8) or subsection (9) of section 16, sub-section (8) of section 19 passed by an authority empowered to do so under this Act not being an authority above the rank of an Assistant Commissioner may, within a period of thirty days from the date on which the order was served on him, appeal against such order, (i) to the Deputy Commissioner (Appeals), if the order was passed by an authority of the rank of an Assistant Commissioner; and (ii) to the Assistant Commissioner (Appeals), if the order was passed by an authority of the rank of a Commercial Tax Officer:
Provided that orders passed under sections 48, 49, 67, 69, 70, 70A and 72 shall be appealable only to the Deputy Commissioner (Appeals):
Provided further that the Deputy Commissioner (Appeals) and Assistant Commissioner (Appeals) may admit an appeal prese
(1) The Deputy Commissioner may, of his own motion, call for and examine any order passed or proceedings recorded under this Act by any officer or authority subordinate to him which in his opinion is prejudicial to the interest of the Revenue and may make such enquiry or cause such enquiry to be made and, subject to the provisions of this Act, may pass such order thereon as he thinks fit.
Explanation. - For the purpose of this section an order passed or proceedings recorded shall be deemed to be prejudicial to the interest of the revenue where the tax or other amount assessed or demanded is lower than what is actually due, either due to escapement of turnover or for any other reason.
(2) The Deputy Commissioner shall not pass any order under subsection (1) if, -
(a) the time for appeal against the order has not expired;
(b) the order has been made the subject matter of an appeal t
(1) Any person objecting to an order passed or proceedings recorded under this Act for which an appeal has not been provided for in Section 55 or section 60 may, within a period of thirty days from the date on which a copy of the order or proceeding was served on him in the manner prescribed, file an application for revision of such order or proceeding to the Deputy Commissioner:
Provided that the Deputy Commissioner may admit an application for revision presented after the expiration of the said period, if he is satisfied that the applicant had sufficient cause for not presenting the application within the said period.
(2) An application for revision shall be in the prescribed form and shall be verified in the prescribed manner, and be accompanied by a fee of five hundred rupees.
(3) On admitting an application for revision, the Deputy Commissioner may call for and examine the record of the order or p
(1) The Commissioner may suo motu call for and examine any order passed or proceedings recorded under this Act by any officer or authority, subordinate to him other than that of the Deputy Commissioner (Appeals) or the Assistant Commissioner(Appeals) or not being the orders passed by him against any order issued or proceedings recorded under sub- section (3) of section 25, sub-section (8) or sub-section (9) of section 44, section 49,section 67, section 68, section 69 or section 70 which in his opinion is prejudicial to the interest of revenue and may make such enquiry or cause such enquiry to be made and subject to the provisions of this Act may pass such order thereon, as he thinks fit.
Explanation. - For the purpose of this section an order passed or proceedings recorded shall be deemed to be prejudicial to the interest of the revenue where the tax or other amount assessed or demanded is lower than what is actually due, either due to escapemen
(1) Notwithstanding anything contained in sub-section (4) of section 3, the Commissioner or any Joint Commissioner authorized by him in this behalf, may suo-motu call for and examine any order passed by Deputy Commissioner (Appeals) or Assistant Commissioner (Appeals) under section 55, along with records thereof, which in his opinion is prejudicial to the interest of revenue and may make such enquiry or cause such enquiry to be made and subject to the provisions of this Act may pass such orders as he deems fit.
(2) The Commissioner or Joint Commissioner shall not pass any order under sub-section (1), if,-
(a) the order has been made on subject matter of an appeal before the Appellate Tribunal or of a revision before the High Court; or
(b) more than one year have expired from the year in which the order referred to therein has been passed.
(3) Notwithstanding anything contained in
(1) Any person objecting to an order passed by the Deputy Commissioner other than an order of the Deputy Commissioner (Appeals) or the Assistant Commissioner(Appeals) under section 55 may, within a period of thirty days from the date on which a copy of the order was served on him file an application for revision of such order to the Commissioner:
Provided that the Commissioner may admit an application for revision filed after the expiry of the said period if he is satisfied that the applicant had sufficient cause for not filing the application within the said period.
(2) Such application for revision shall be in the prescribed form and shall be verified in the prescribed manner and be accompanied by a fee of seven hundred and fifty rupees.
(3) Notwithstanding that an application has been preferred under sub-section (1), the tax, fee or other amount shall be paid in accordance with the order against whi
(1) Any person objecting to an order passed by the Deputy Commissioner (Appeals) or Assistant Commissioner (Appeals) under sub-section (5) of section 55 or any officer empowered by the Government in this behalf may within a period of 60 days from the date on which the order was served on him, in the manner prescribed, appeal against such order to the Appellate Tribunal:
Provided that the Appellate Tribunal may admit an appeal presented after the expiration of the said period if it is satisfied that the appellant had sufficient cause for not presenting the appeal within the said period:
Provided further that no appeal shall lie in cases where suo moto revision proceedings under section 58 is pending.";
(1A) Omitted
(2) The officer authorised under sub-section (1) or the person against whom an appeal has been preferred, as the case may be, on receipt of notice that an appeal against
(1) Notwithstanding anything contrary contained in this Act an assessee may, at any stage of an appeal or revision pending before any authority under the Act or the High Court, make an application in such form and in such manner as may be prescribed, containing a full and true disclosure of his turnover which had not been disclosed before the Assessing authority including the additional amount of tax payable on such turnover and such other particulars as may be prescribed, to the Settlement Commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided:
Provided that no such application shall be made unless, the assessee has furnished the return of turnover, which he is or was required to furnish under any of the provisions of this Act.
Provided further that an application shall not be rejected under this subsection unless an opportunity has been given to the applicant o
(1) Any person objecting to an order affecting him passed under [section 58 and section 58A] or section 94 may, within a period of ninety days from the date on which a copy of the order was served on him in the manner prescribed, appeal against such order to the High Court:
Provided that the High Court may admit an appeal preferred after the period of ninety days aforesaid if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the said period.
(2) The appeal shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a fee of one thousand five hundred rupees.
(3) In disposing of an appeal, the High Court may, after giving the parties a reasonable opportunity of being heard either in person or by a representative,
(a) in the case of an order of assessment or penalty,-
(i) c
(1) Any officer empowered by the Government in this behalf or any other person objecting to an order passed by Appellate Tribunal under sub-section (4) or sub-section (7) of section 60, or any person objecting to an order passed by the Commissioner under sub-section (4) of section 59 may, within ninety days from the date on which a copy of such order is served on him in the manner prescribed, prefer a petition to the High Court on the ground that the Appellate Tribunal or the Commissioner has either decided erroneously or failed to decide any question of law:
Provided that the High Court may admit a petition preferred after the period of ninety days aforesaid if it is satisfied that the petitioner had sufficient cause for not preferring the petition within the said period.
(2) The petition shall be in the prescribed form and shall be verified in the prescribed manner and where it is preferred by a person other than an offic
very appeal preferred to the High Court under section 62,every petition under section 63 and every application under the said sections shall be heard by a Bench of not less than two judges, and in respect of such appeal, petition or application, the provisions of section 98 of the Code of Civil Procedure, 1908 (Central Act 5 of 1908) shall, so far as may be, apply.
Every interlocutory application prescribed by the Government and filed before the authorities under this Act specified below, other than those filed by officers empowered by Government, shall be accompanied by the following fees, namely: -
(a) Before the Deputy Commissioner (Appeals) ,Assistant commissioner (Appeals) or the Deputy Commissioner Before the Commissioner or the Appellate Tribunal Two hundred rupees Three hundred rupees
(1) Any authority including Appellate Tribunal and Settlement Commission issuing any order or proceedings under this Act may, on application or otherwise, at any time within four years from the year in which the order passed by it, rectify any error apparent on the face of the record. Provided that no such rectification, which has the effect of enhancing an assessment or any penalty, shall be made unless such authority has given notice to the person affected and has allowed him a reasonable opportunity of being heard.
(2) Where such rectification has the effect of reducing an assessment or penalty, the assessing authority shall make any refund to the person entitled thereto.
(3) Where any such rectification has the effect of enhancing an assessment or penalty, the assessing authority shall give the dealer or other person, a revised notice of assessment or penalty and thereupon the provisions of this Act and the rules made t
(1) Notwithstanding anything contained in section 71 if any authority empowered under this Act is satisfied that any person, -
(a) being a person required to register himself as a dealer under this Act, did not get himself registered; or
(b) has failed to keep true and complete accounts; or
(c) has failed to submit any return as required by the provisions of this Act or the rules made there under; or
(d) has submitted an untrue or incorrect return; or
(e) has made any bogus claim of input tax credit, special rebate or refund; or
(f) has continued the business during the period of suspension of registration; or
(g) has failed to return the un used statutory Forms and Declarations under this Act after the cancellation or suspension of the registration; or
(h) has not stopped any vehicle or vessel
(1) Where an assessee makes default in payment of tax or any other amount due under this Act within the time specified in the notice of demand, he shall, in addition to the tax or other amount in arrears and the amount of interest payable under sub-section (5) of section 31, be liable to pay, by way of penalty such amount and in the case of a continuing default, amount at such rate for every day during which the default continues, as the assessing authority may direct, so, however, that the total amount of penalty shall not exceed the amount of tax or other amount in arrears.
(2) No penalty under sub-section (1) shall be imposed without giving the assessee a reasonable opportunity of being heard.
(1) If any officer empowered under sub-section (1) of section 47 finds on inspection of any vehicle or vessel that any transporting agency or contract carriage transporting any goods without the documents required under sub-section (3) of section 46, such officer may without prejudice to any action that may be taken under section 47, impose by an order in writing on such transporting agency, or contract carriage, or the owner of the vehicle a penalty equal to twice the amount of the tax due on such goods subject to a minimum of five thousand rupees.
(2) Where a transporting agency or contract carriage or the owner of the vehicle or vessel is subsequently guilty of the offence under sub-section (1) for more than one occasion, the office referred to in that sub-section may, in addition to the penalty that may be imposed under the said sub-section, by an order in writing detain the vehicle or vessel for a period of thirty days from the date of insp
Any person who, -
(a) prevents or obstructs survey, inspection, entry, search, seizure or checking of invoices by an officer empowered under this Act, or
(b) prevents or obstructs inspection of any vehicle or vessel or goods transported, otherwise or seizure of goods by an officer in charge of a check post or barrier or any officer empowered under this Act, or
(c) prevents or obstructs any other act of an officer which he is empowered to perform under this Act, shall, pay by way of penalty an amount not exceeding twenty five thousand rupees, as may be imposed by an officer not below the rank of an assessing authority.
Provided that no order under this shall be passed unless the person affected by such order is given an opportunity of being heard.
(1) Any officer during the course of any inspection or search of any business place, building, godown or any other place, or checking of goods under transport or verification of the bills at any place finds that the seller has not issued a sale bill or an invoice or cash memorandum in respect of any sale, in violation of section 40 A of the Act, the dealer shall, without prejudice to any other provisions in the Act, be liable to pay by way of penalty, an amount not exceeding twice the amount of tax evaded or sought to be evaded or one thousand rupees for the first offence, whichever is higher, an amount not exceeding thrice the amount of tax evaded or sought to be evaded or two thousand rupees for the second offence, whichever is higher, and so on in arithmetic progression, for every subsequent commissions of the above offence.
(2) No penalty under sub-section (1) shall be imposed without giving the person affected a reasonable opportunity of be
Any person bringing goods from outside the State declaring it as for own use and has used the goods so brought otherwise than for own use, shall, without prejudice to any other provisions in this Act, be liable to pay by way of penalty, an amount not exceeding thrice the amount of tax due on such goods.
(1) Any person who, -
(a) knowingly submits an untrue return or fails to submit return as required by the provisions of this Act or the rules made there under; or
(b) fails to keep true and complete accounts; or
(c) dishonestly objects to or fails to comply with the terms of a notice issued to him under sub-section (1) of section 35, or
(d) being a person obliged to register himself as a dealer under this Act does not get himself registered; or
(e) fails to stop any vehicle or vessel when required to do so by an officer empowered in this behalf; or
(f) willfully acts in contravention of any of the provisions of this Act or the rules made there under, for the contravention of which no express provision for punishment is made by this Act, shall, on conviction by a Magistrate, be liable to fine which may extend to twenty five thousand rupee
(1) Any person, who knowingly and willfully, uses a false registration number or uses a registration number of another person with a view to,
(i) evade payment of tax due, or
(ii) to claim any input tax credit, without actually effecting the purchase, or
(iii) to shield the identity of the person to whom the sale has been effected, in the invoices issued or in the sale and purchase lists to be filed along with the returns under this Act, shall, on conviction by a Magistrate, be punished with simple imprisonment for a period which may extend to six months or with fine not less than five times of the tax sought to be evaded, or both.
(2) The assessing authority may cancel his registration granted under this Act on conviction by the Magistrate under sub-section (1).
Explanation. - For the purpose of this section, return shall mean revised return if such revised
(1) If any person collects any sum by way of tax or purporting to be by way of tax in contravention of sub-section (2) or sub-section (3) or sub- section (4) of section 30, he shall, in addition to the forfeiture of such illegal collection, be liable to pay penalty not exceeding five thousand rupees:
Provided that no penalty or forfeiture shall be ordered under this subsection if the assessing authority is satisfied that the sum so collected has been returned to the person from whom it was collected.
(2) No penalty or forfeiture shall be ordered under this sub- section against any person unless such person is given an opportunity of being heard.
(3) Where any sum is forfeited to the Government under sub- section (1), any person from whom the amount was collected in contravention of the provisions of sub-section (2) or sub-section (3) or subsection (4) of section 30 may apply to the assessing authority
Any person who,
(a) abets or induces in any manner another person to make and deliver any return or an account or a statement or declaration under this Act or rules made there under, which is false and which he either knows to be false or does not believe to be true, or
(b) abets or induces in any manner another person or persons to prevent or obstruct survey, inspection, entry, search, checking of tax invoice or seizure by an officer empowered under this Act, or
(c) abets to act in contravention of any of the provisions of this Act or the rules made there under, shall, on conviction by a Magistrate be punished with simple imprisonment for a period which may extend to six months or with fine not exceeding fifty thousand rupees or with both.
(1) The assessing authority or other officer or authority authorized by the Government in this behalf may accept from any person who has committed or is reasonably suspected of having committed an offence against this Act, other than those specified under clause (e) of sub- section (1) or clauses (b), (c) or (d) of sub-section (2) of section 71, by way of compounding of such offence,-
(a) where the offence consists of the evasion of any tax payable under this Act, in addition to the tax so payable a sum of money equal to the amount of tax so payable subject to a minimum of rupees five hundred and maximum of rupees four lakhs: and
Provided that the maximum compounding fee collectable against a single offence spread over several return periods in a financial year shall be two lakh rupees
(b) in other cases, a sum of money not exceeding ten thousand rupees:
Provided that the Commissi
(1) Any dealer who had failed to include or suppressed any turnover or taxable turnover in the return filed upto 31st March, 2008 shall be permitted to disclose voluntarily such suppressed turnover to the assessing authority on or before 30th June, 2009.
(2) Such dealers shall file a revised return along with tax due thereon and a statement admitting such non-inclusion or suppression in the returns already filed.
(3) Interest and penalty on the tax due on the suppressed turnover shall be waived in the case of such dealers.
(4) The provisions under this section shall not be applicable to cases already detected by any authority under this Act.
(1) If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment if the proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, managing agent or any
No suit or other proceeding shall except as expressly provided in this Act, be instituted in any court to set aside or modify any assessment made under this Act or any proceedings under this Act for the recovery of any tax or other amount due under this Act or to stay any such proceedings or recovery.
Notwithstanding anything contained in any other law in force or in any judgement, decree or order of any court, no court or any other authority shall pass any order attaching any amount due to Government from any person under the provisions of this Act.
(1) Any order of assessment made under this Act shall be conclusive evidence in any prosecution or other proceeding.
(2) The validity of the assessment of any tax, or of the levy of any fee or other amount, made under this Act, or the liability of any person to pay any tax, fee or other amount so assessed or levied, shall not be questioned in any criminal court in any prosecution or other proceeding, whether under this Act or otherwise.
(1) No suit, prosecution or other proceeding shall lie against any officer or servant of the Government for any act done or purporting to be done under this Act, without the previous sanction of the Government.
(2) No officer or servant of the Government shall be liable in respect of any such act in any civil or criminal proceeding, if the act was done in good faith in the course of the execution of duties or the discharge of functions imposed by or under this Act.
Notwithstanding anything contained in any other law in force or in any judgement, decree or order of any court, no court or any other authority shall pass any order attaching any amount from any person, out of the tax collected by such person under the Act and kept with him before it became due to Government.
Notwithstanding anything contained elsewhere in this Act, where a case of tax evasion has been detected and proceedings have been initiated against such evasion, the dealer shall not be permitted to revise the returns in respect of the return period covered in the penal proceedings until such proceedings are finalized.
No suit shall be instituted against the Government and no suit, prosecutions or other proceeding shall be instituted against any officer or servant of the Government in respect of any act done or purporting to be done under this Act, unless the suit, prosecution or other proceeding is instituted within six months from the date of the act complained of:
Provided that, in computing the period of limitation under this section, the time taken for obtaining sanction under the sub-section (1) of section 79 shall be excluded.
An assessing authority or an appellate or revisional authority (including the Appellate Tribunal) shall, for the purposes of this Act, have all the powers conferred on a court by the Code of Civil Procedure, 1908 (Central Act 5 of 1908), in respect of the following matters, namely,-
(a) summoning and enforcing the attendance of any person and examining him on oath or affirmation; and
(b) compelling the production of any document.
(1) Any officer, not below the rank of an assessing authority, by notice in writing, require any person, whether or not liable to pay tax under the Act. (a) to furnish any information that may be required by the notice, or (b) to attend at the time and place designated in the notice, for the purpose of being examined on oath by such officer, concerning the tax affairs of that person or any other person and for that purpose such officer may require the person examined to produce any book, record or information stored in computer in the control of that person.
(1) Notwithstanding anything contained in any other law for the time being in force, -
(a) a micro film of a document or the reproduction of the image or images embodied in such micro film (whether enlarged or not); or
(b) a facsimile copy of a document; or
(c) a statement contained in a document and included in a printed material produced by a computer (hereinafter referred to as a computer printout), if the conditions mentioned in sub- section (2) and the other provisions contained in this section are satisfied in relation to the statement and the computer in question, shall also be deemed to be a document for the purposes of this Act and the rules made there under and shall be admissible in any proceedings there under, without further proof or production of the original, as evidence of any contents of the original or of any fact stated therein of which direct evidence would be admissible.
Where any document-
(i) is produced by any person or has been seized from the custody or control of any person, in either case, under this Act or under any other law, or
(ii) has been received from any place within or outside the state India in the course of investigation of any offence alleged to have been committed by any person under this Act, and such document is tendered by the prosecution in evidence against him or any other person who is tried jointly with him, the court shall-
(a) presume, unless the contrary is proved, that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the court may reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is in that person's handwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom
(1) All particulars contained in any statement made, return furnished or accounts, registers or documents produced under the provisions of this Act or in the evidence given or affidavit or deposition made in the course of any proceeding under this Act or in any record of any proceeding relating to the recovery of a demand, prepared for the purposes of this Act, shall be treated as confidential and shall not be disclosed.
(2) Nothing contained in sub-section (1) shall apply to the disclosure of any such particulars,-
(i) to any officer of the Commercial Tax Department of the State;
(ii) for the purpose of prosecution under the Indian Penal Code (Central Act 45 of 1860), or under this Act in respect of any such statement, return, accounts, registers, documents, evidence affidavit or deposition;
(iii) to any person enforcing the provisions of this Act where it is necessary to disclos
(1)Any person who is entitled or required to appear before any authority other than the High Court in connection with any proceedings under this Act may be represented before such authority, -
(a) by his relative or a person employed by him, if such relative or person is duly authorized by him in writing in this behalf; or
(b) by a legal practitioner; or
(c) by a chartered accountant or Cost Accountant duly authorized by him in writing in this behalf; or
(d) by a sales tax practitioner possessing the prescribed qualifications and duly authorized by him in writing in this behalf.
(e) a member of the Institute of Company Secretaries of India within the meaning of section 2(2) of the Company Secretaries Act, 1980 (Central Act 56 of 1980).
Explanation. - For the purpose of this sub-section the expression "a person employed by him" shall mean
(1) The amount of taxable turnover computed in accordance with the provisions of this Act shall be rounded off to the nearest multiple of ten rupees and for this purpose any part of a rupee consisting of paise shall be ignored and thereafter if such amount is not a multiple of ten, then, if the last figure in that amount is five or more, the amount shall be increased to the next higher amount which is a multiple of ten, and if the last figure is less than five, the amount shall be reduced to the next lower amount which is a multiple of ten, and the amount so rounded off shall be deemed to be the taxable turnover of the dealer for the purposes of this Act.
(2) The amount of tax or other amount due under this Act shall be rounded off to the nearest rupee and for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than
Any notice required to be served on, or given to, any person under this Act or the rules made there under shall be deemed to be duly served or given: -
(a) if the notice is addressed to that person and is given or tendered to him; or
[by sending it through the portal of the registered dealer in the Kerala Value Added Tax Information System (KVATIS) along with an alert through short message service (SMS) in the phone number declared by the dealer with the department.]
(b) where that person cannot be found if it is affixed on some conspicuous part of his last known place of residence or business or is tendered to some adult member of his family; or
(c) if it is sent by registered post or by courier service to that person at his last known place of residence or business, or
(d) by sending by FAX if the FAX Number is known; or
(e) by sending
(1) When an assessing authority finds, on completion of annual assessment, that a dealer has paid tax in excess of what is due from him, it shall refund the excess to the dealer.
(2) When an assessing authority receives an order from any appellate or revisional authority or any officer authorised under sub- section (5) of section 47, to make a refund of tax or penalty or cash security paid by a dealer or any other person, it shall effect the refund to such dealer or such other person, as the case may be.
(3) Notwithstanding anything contained in sub-section (1) and (2), the assessing authority shall have power to adjust the amount due to be refunded under sub-section (1) or subsection (2), or under the provisions of the Kerala General Sales Tax Act, 1963 (15 of 1963); towards the recovery of any amount due, on the date of adjustment, from the dealer.
(4) In case refund under sub-section (1) or sub-sect
(1) Where an order giving rise to refund is the subject matter of appeal or any other proceedings under the Act and the assessing authority is of the opinion that the grant of refund is likely to prejudice the public revenue, it may, for good and sufficient reason to be recorded in writing withhold the refund until such time as it deem proper.
(2) Where a refund is withheld and the matter is finally settled in favour of a dealer, a simple interest of six percent per annum shall be paid for the period commencing from the first day of the order determined in favour of the dealer ending the date on which the refund is made., where the assessing authority fails to make the refund within ninety days from the date of receipt of such order by it.
Where any tax or any other amount due or demanded under the Act is paid by any dealer or other person, the payments so made shall be appropriated first towards interest accrued on such tax or other amount under sub-section (5) of section 31 on of payment and the balance available shall be appropriated towards principal outstanding.
(1) The Government may, by notification in the Gazette, make rules either prospectively or retrospectively to carry out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for, -
(a) all matters expressly required or allowed by this Act to be prescribed:
(b) determining the total turnover, taxable turnover or turnover of a dealer for the purposes of this Act;
(c) the assessment to tax under this Act of business which is discontinued or the ownership of which has changed;
(d) the assessment to tax under this Act of business owned by minors and other incapacitated persons or by persons residing outside the state;
(e) the assessment of a business owned by any person whose estate or any portion of whose estate is under the control of the Court of Wards, the Admin
(1) The Government may, by notification in the Gazette add, omit or amend any entry in any of the Schedule to this Act either prospectively or retrospectively, but not so as to enhance the rate of tax in any case.
(2) Where a notification has been issued under sub-section (1), there shall, unless the notification is in the meantime rescinded, be introduced in the Legislative Assembly, as soon as may be, but in any case during the next session of the Assembly following the date of the issue of the notification a Bill on behalf of the Government, to give effect to the addition, omission or amendment of the entries in the Schedules specified in the notification, and the notification, shall cease to have effect when such Bill is passed into a law, whether with or without modifications, but, without prejudice to the validity of anything previously done there under:
Provided that, if a notification under sub-section (1) is issued
(1) The Government may require the assesses to file returns, forms and other statements to be submitted by him under this Act and make the payment of tax, fee or other amounts due under this Act, electronically through the official website of the Commercial Taxes Department.
(2) Notwithstanding anything contained in section 92, the Commissioner may, for the purpose of implementation of electronic filing of returns, forms and other statements or electronic payment of tax, fee or other amounts, by notification in the gazette, make suitable modifications in the forms prescribed under this Act and make necessary changes in the manner of submission and authentication of such returns forms and other statements, The modifications or changes so made shall be published in the website of the Commercial Taxes Department also and in such other manner as the Commissioner may deem fit.
(1) If any dispute arises, otherwise than in a proceedings before any appellate or revisional authority or in any court or tribunal, as to whether, for the purpose of this Act, -
(a) any person is a dealer; or
(b) any transaction is a sale; or
(c) any particular dealer is required to be registered; or
(d) any tax is payable in respect of any sale or purchase, or if tax is payable, the point and the rate thereof; or
(e) any activity carried out in any goods amounts to or results in the manufacture of goods; such dispute an authority consisting of three officers in the rank of Joint Commissioner or Deputy Commissioner nominated by the Commissioner on application by a dealer or any other person.
(1A) If the dispute relates to the tax rate of a commodity, the details of the first seller, or the manufacturer of such goods in the State, as the
Whenever in respect of any proceedings under this Act, any prescribed authority ceases to exercise jurisdiction and is succeeded by another who has and exercised jurisdiction, the authority or officer so succeeding may continue the proceeding from the stage at which the proceeding was left by his predecessor
Provided that before proceeding under this section the authority shall give the person affected thereby an opportunity of being heard.
Every appeal or revision filed under the provisions of this Act, shall be disposed of within one year from the date of filing of such appeal or revision as the case may be.
Provided that the period during which the proceedings are stayed by any competent authority shall be excluded for the purpose of computing the period of one year.
(1) If any difficulties arise in giving effect to the provisions of this Act, the Government may, as occasion may require, by order, do anything, which appears to them necessary for the purpose of removing the difficulty.
(2) All orders made under sub-section (1) shall, as soon as may be after they are made, be laid before the Legislative Assembly for a period of not less than fourteen days and shall be subject to such modifications as the Legislative Assembly may make during the session in which they are so laid or the session immediately following.
(1) From the date of commencement of this Act, the Kerala General Sales Tax Act, 1963 (15 of 1963) shall apply only in respect of goods included in the Fourth Schedule to this Act.
(2) Goods taxable under the said Act at the point of last purchase in the State, which are held as closing stock on the date preceding the date of coming into force of this Act, shall be deemed to have acquired the quality of last purchase under the provisions of the Kerala General Sales Tax Act, 1963 on such date and tax shall be levied accordingly.
Provided that, notwithstanding anything contained in sub-section (2), the dealer who had paid tax on such stock under this Act shall not be liable to pay any tax under the Kerala General Sales Tax Act, 1963. But such dealer shall be liable to pay interest for such belated payments under the provisions of this Act.
(3) Notwithstanding anything in sub-section (1), Government may p
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