KERALA FINANCE ACT, 2023

ACT 17 OF 2023

28th March, 2023

An Act to give effect to certain financial proposals of the Government of Kerala for theFinancial Year 2023-2024.

Preamble.—WHEREAS, it is expedient to give effect to certain financial proposals of theGovernment of Kerala for the Financial Year 2023-2024;

BE it enacted in the Seventy-fourth Year of the Republic of India as follows:—

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1 Short title and commencement.

(1) This Act may be called the Kerala Finance Act, 2023

(2) Save as otherwise provided in this Act,—

(a) section 11 shall come into force on such date as the Government may, by notification in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this section and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision;

(b) the remaining provisions of this Act, shall come into force on the 1st day of April, 2023.

2 Amendment of Act XII of 1955.

In the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 (XII of 1955),—

(1) in section 5, for the words “one thousand rupees”, the words “one thousand five hundred rupees” shall be substituted;

(2) in section 6, in sub-section (4), for the words “fifty rupees”, the words “seventy five rupees” shall be substituted;

(3) in section 7, in sub-section (5), for the words “two hundred rupees”, the words “three hundred rupees” shall be substituted;

(4) in section 12, in sub-section (2), for the words “two hundred rupees”, the words “three hundred rupees” shall be substituted

3 Amendment of Act 17 of 1959.

In the Kerala Stamp Act, 1959 (17 of 1959) in the SCHEDULE,—

(a) for serial number 21 and the entries against it in columns (2) and (3) and explanation thererto, the following serial number and entries shall respectively be substituted, namely:—

“21 Conveyance as defined in section 2(d) other than a conveyance specified in No. 22, not being a transfer charged or exempted under No. 55 Eight rupees for every rupees 100 or part thereof of the fair value of the land or the amount or value of the consideration for such conveyance, whichever is higher.";

(b) for serial number 22 and the entries against it in columns (2) and (3), and explanation thereto, the following serial number and entries shall respectively be substituted, namely:—

“22 Conveyance as defined in section 2(d) not being a transfer charged or exempted under No.55 of immovable property situated,—

4 Amendment of Act 10 of 1960.

In the Kerala Court Fees and Suits Valuation Act, 1959 (10 of 1960),—

(1) in section 3, after clause (ii), the following clause shall be inserted, namely:—

“(iia) “e-stamp” means an electronically generated impression or challan issued by the Department of Treasuries, Government of Kerala or any other agency appointed by the Government of Kerala to denote the payment of judicial stamp duty.”;

(2) in the existing proviso to sub-section (1) of section 76, after the words and figures “the Kerala State Goods and Services Tax Act, 2017 (20 of 2017)”, the following words and figures shall be inserted, namely:—

5 Amendment of Act 15 of 1963.

In the Kerala General Sales Tax Act, 1963 (15 of 1963),—

(1) in section 2,—

(a) for clause (i), the following clause shall be substituted, namely:—

“(i) “Additional Commissioner of State Tax” means any person appointed to be an Additional Commissioner of State Tax under section 3 of this Act;”;

(b) after clause (i), the following clauses shall be inserted, namely:—

“(ia) “Additional Commissioner of State Tax (Appeals)” means any person appointed to be an Additional Commissioner of State Tax (Appeals) under section 3 of this Act;

In the Kerala Electricity Duty Act, 1963 (23 of 1963), in the Schedule, in item no.4, in column (3), for the figure and words “10 Paise per unit of energy consumed”, the words “Five per cent of the price of energy indicated in the invoice” shall be substituted.

7 Amendment of Act 19 of 1976.

(i) in entry (i), in column number (3), for the figure “310”, the figure “280” shall be substituted;

(ii) in entry (ii), in column number (3), for the figure “530”, the figure “480” shall be substituted;

(iii) in entry (iii), in column number (3), for the figure “750”, the figure “680” shall be substituted;

(iv) in entry (iv), in column number (3), for the figure “500”, the figure “450” shall be substituted;

(v) in entry (v), in column number (3), for the figure “750”, the figure “680” shall be substituted;

Legal Commentary on Kerala Finance Act, 2023 - Section 7

Introduction

The Kerala Finance Act, 2023, aims to implement various financial proposals of the Government of Kerala for the fiscal year 2023-2024. Section 7 of this Act addresses specific provisions related to the enforcement and compliance of tax regulations.

What does Section 7 Say

Section 7 outlines the procedures for the compounding of offences under the Act. It provides a framework for the resolution of certain tax-related offences through a compounding mechanism, allowing offenders to settle their cases without undergoing lengthy legal proceedings.

Essential Ingredients

Scope of Section

The scope of Section 7 extends to various tax-related offences under the Kerala Finance Act, allowing for a more efficient resolution process. This provision is particularly relevant for small businesses and individuals who may find it challenging to navigate the complexities of tax law.

Punishment for Section

While Section 7 provides for compounding, it does not specify punitive measures for offences that are not compounded. The general framework for penalties and fines would still apply to those who do not opt for compounding.

Legal Comments

8 Amendment of Act 30 of 2004.

(a) the existing clause (i) shall be renumbered as (ib) and before clause (ib) so renumbered, the following clauses shall be inserted, namely:— “(i) “Additional Commissioner of State Tax” means any person appointed to be an Additional Commissioner of State Tax under sub-section (3) of section 3 of this Act;

(ia) “Additional Commissioner of State Tax (Appeals)” means any person appointed to be an Additional Commissioner of State Tax (Appeals) under sub-section (3) of section 3 of this Act;”;

“(iia) “Appellate Authority” means an authority authorised to hear appeals as referred to in section 55;”;

9 Amendment of Act 8 of 2007.

10 Amendment of Act 21 of 2008.

In the Kerala Finance Act, 2008 (21 of 2008), in section 6, after sub-section (2), the following sub-section shall be inserted, namely:—

“(2A) (1) There shall be levied and collected, a cess, from the dealers who are liable to pay tax,—

(i) under clause (a) of sub-section (1) of section 5 of the Kerala General Sales Tax Act, 1963 (15 of 1963), at the rate of two rupees per litre of High Speed Diesel Oil and Petrol falling under sub-entries (ii) and (iii) of serial number 1 of the schedule of the Kerala General Sales Tax Act, 1963 (15 of 1963);

(ii) under clause (b) of sub-section (1) of section 5 of the Kerala General Sales Act, 1963 ( 15 of 1963), at the rate of,—

(a) twenty rupees per bottle of foreign liquor, in the case where the maximum retail price for one bottle of foreign liquor falling under serial number 2 of the schedule of the Kerala General S

11 Amendment of Act 20 of 2017

(a) in sub-section (2), in clause (d), the words “goods or” shall be omitted;

(b) in sub-section (2A), in clause (c), the words “goods or” shall be omitted;

(i) in the second proviso, for the words “added to his output tax liability, along with interest thereon”, the words and figures “paid by him along with interest payable under section 50” shall be substituted;

(ii) in the third proviso, after the words “made by him”, the words “to the supplier” shall be inserted;

(a) in sub-section (3), in the Explanation, for the words and figure “except those specified in paragraph 5 of the said schedule”, the following sh

12 Special provision for filing of appeal.

Notwithstanding anything contained in sub-section (1) of section 174 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) and in the Kerala Tax on Luxuries Act, 1976 (32 of 1976) ( hereinafter referred to as “the repealed Act”) and the rules made thereunder or in any judgment, decree or order of any court, tribunal or appellate authority,—

(a) (1) A dealer, other than those whose cases involving disputed amounts have been settled, may, after the expiration of the period mentioned under sub-section (1) of section 7 of the repealed Act, even if the appeal filed under sub-section (1) of section 7 of the repealed Act has not been admitted previously due to any reason, present a fresh appeal before the Appellate Authority on or before 30th September, 2023:

Provided that the Appellate Authority shall consider the appeal filed under this sub-section as if it is an appeal filed under sub-section (1)