The Kerala General Sales Tax Act, 1963
Chapter III : Incidence and Levy of tax

10. Power of Government to grant exemption and reduction in rate of tax

(1) The Government may, if they consider it necessary in the public interest, by notification in the Gazette, make an exemption or reduction in rate, either prospectively or retrospectively in respect of any tax payable under this Act,

    (i) on the sale or purchase of any specified goods or class of goods, at all points or at a specified point or points in the series of sales or purchases by successive dealers, or

    (ii) by any specified class of persons in regard to the whole or any part of their turnover.

(2) Any exemption from tax, or reduction in the rate of tax, notified under subsection (1),-

    (a) may extend to the whole State or to any specified area or areas therein,

    (b) may be subject to such restrictions and conditions as may be specified in the notification.

(3) The Government may by notification in the Gazette, cancel or vary any notification issued under sub-section (1).