Sub:- SGSTD -Changes in mode of remittance of certain Cesses and Additional Sales Tax levied under KGST Act , 1963 and Kerala Finance Act, 2008 - certain instructions issued - Regarding.

Ref:- 1) G.O(Rt) No.3608/2023/Fin dated 12-05-2023 of the Government of Kerala

1 . As declared in paras 561, 562 and 563 of the Budget speech 2023-24 regarding raising resources for social security seed fund, a new sub section (2A ) was introduced in section 6 of the Kerala Finance Act, 2008 for levying a cess for this purpose with effect from 01-04-2023. This cess is levied on (i) on sale of foreign liquor at the rate of Rs.20 for each bottle of IMFL having MRP between Rs.500 to Rs.999 and at the rate of Rs.40 per bottle of IMFL having MRP above Rs.1000.and, (ii) Rs.2 per litre on the sale of petrol and diesel.

For this purpose government has now, vide G.O read above provided a separate sub-head under the KGST head of account for depositing this levy.

As per Section 7 of the Kerala Infrastructure Investment Fund Act, 1999, as amended in 2016, the proceeds from this AST are designated to KIIFB. So for this purpose government has now, provided a separate sub-head under the KGST head of account.

Since the KVATIS application presently used for e-filing and payment of KGST taxes is undergoing re-development, a separate procedure for depositing the levies mentioned above is necessary as an interim measure. In the circumstances the following instructions are issued.

a. The amount of AST or Cess as per section 5D of the KGST or sub section (2A ) of section 6 of the Kerala Finance Act, 2008 Act (as per para 1 or 2 above) shall be remitted online by filling the particulars at the e-Treasury portal https://etreasury.kerala.gov.in/ by selecting "Taxes" Department available under services -> Departmental Receipts option. The heads of accounts corresponding to the different cess collections against which remittance are to be made are as follows:

c. On receipt of the e-mail, the Deputy Commissioner (Tax Payer Services Division) shall acknowledge the receipt of the same. The officer shall also verify the e-challan through https://etreasury.kerala.gov.in/> Status > Challan Status link.

d. The dealers under the KGST Act are not required to furnish the amount collected under Cess or AST mentioned above in the Returns filed in Form No.10 to avoid duplication of figures.

e. The dealers under the KGST Act can declare all other Taxes, TOT, Cess, etc under online Form No.10 in KVATIS and make payment following the current procedure.

f. Social Security Cess is being levied and collected as per sub section (1 ) of section 6 of the Kerala Finance Act, 2008. This levy is the rate of one percent on the tax payable by dealers under section 5 except on foreign liquor,of the Kerala General Sales Tax Act, 1963 (15 of 1963).The payment of this cess shall be continued to be made through the Form 10 Return to be filed under KGST act 1963. The above procedure as per (a) shall not be applicable for this cess.

All the stakeholders including trade associations/organisations are requested to bring the contents of this circular to the attention of their members in particular and to the trade in general.

The Joint Commissioners/Deputy Commissioners shall inform all the concerned dealers regarding the special procedure prescribed for making payment of Cesses/AST collected under the KGST Act.

This circular is issued under section 58 A sub section (2) of the Kerala General Sales Tax Act.

Yours faithfully

Sd/-

COMMISSIONER