Sub:- KGST Act, 1963 - Special provision for payment of turnover tax and waiver of penalty and interest - instructions issued- reg.

Ref:- Kerala Finance Act, 2020,

1. The Kerala Finance Act, 2020 (Act 7 of 2020) has inserted Section 7A "Special provision for payment of turnover tax and waiver of penalty of interest" for bar hotels,-

(i) which were closed pursuant to the Abkari policy of the Government for the year 2014-2015, and were registered and had paid turnover tax prior to such closure; and

(ii) were subsequently granted new/renewed licenses under foreign liquor rules after such closure; and

(iii) who have not paid turnover tax on the turnover of sale conducted under such new/renewed licences for the period up to 31st March, 2020 and assessments were either completed or not, against them for the turnover tax due for such period,

by allowing them to settle the arrears of turnover tax up to 31-03-2020 at the rates mentioned in Section 7, subject to eligibility conditions, with complete waiver of penalty and fifty percent waiver on interest.

2. The special provision provides that the dealers who opt to settle arrears under the said scheme shall file their option in Annexure A, along with return in Form 9A and other statements required to he filed under this Act for such periods, on or before 30th November, 2020.

3; The assessing authority, based on such option, shall determine the amount of tax payable and intimate the. dealer. The determination of tax payable and the intimation to the dealer shall be done in Annexure fi (Order) to this Circular.

4. The dealer, up on receipt of the Order in Annexure 13, shall pay twenty percent of the amount determined and intimated by the assessing authority in Annexure B (Order), within one month of receipt of the said intimation and the balance amount shall be paid in four installments before 31-03-2020.

5. The assessing authorities shall maintain a register as detailed in Annexure -C containing details of Option received, tax determined and arrears settled under this scheme.

Annexure A

Application for payment of turnover tax and waiver of penalty and interest

(see section 7A of the KGST Act.)

I/we, ......................................................., bearing registration certificate No. ................., do hereby opt for payment of turnover tax for the period from .......... To ................. under section 7A of the KGST Act, 1963.

Declaration

i. I,.................................... do hereby solemnly affirm that the bar hotel named, ......................., was closed pursuant to the Abkari policy of the Government for the year 2014-2015.

ii I/we were registered and had paid turnover tax prior to such closure; and was subsequently granted new/renewed licenses under foreign liquor rules after such closure; and have not paid turnover tax on the turnover of sale conducted under such new/renewed licences for the period up to 31st March, 2020 and assessments were completed/not (strike out whichever is not applicable) for the turnover tax due for such period.

iii. Shri / Smt ................ hereby declare that the details stated above are true and correct to the best of my knowledge.

iv. I further declare that l am competent to file application in the capacity as the .....................

V. I hereby undertake to withdraw the appeals / revisions / court cases and other cases relating to these matters on acceptance of this application.

vi. I further undertake that on acceptance of this application I shall abide the conditions of payment without fail.

For office use.

Table A

Details of assessment, if any.

Annexure B

Intimation for payment of turnover tax and waiver of penalty and interest

Name of Office

Reg. No.

To

Sri. / Smt.... ...................

Order No. ....................., dated ...........................

On a consideration of the application dated / 2020 filed by you for payment of turnover tax and waiver of penalty and interest, you have been found eligible. Accordingly, you are hereby permitted to settle the arrears as detailed hereunder:

Table B

Annexure C

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