The following Act of Kerala State Legislature is hereby published for general information. The Bill as passed by the Legislative Assembly received the assent of the Governor on the 27th day of March, 2023.
By Order of the Governor
V. Hari Nair
Law Secretary
THE KERALA FINANCE ACT, 2023
ACT 17 OF 2023
An Act to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2023-2024.
Preamble.- WHEREAS, it is expedient to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2023-2024;
BE it enacted in the Seventy-fourth Year of the Republic of India as follows:-
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.
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;
(ib) "Appellate Authority" means an authority authorised to hear appeals as referred to in section 34;
(ic) "Assistant Commissioner of State Tax" means any person appointed to be an Assistant Commissioner of State Tax under section 3 of this Act.";
(c) clause (v) shall be omitted;
(d) for clause (viiA), the following shall be substituted, namely:-
"(viiA) "Commissioner of State Tax" means the Commissioner of State Tax appointed as such by the Government."
(e) for clause (x), the following shall be substituted, namely:-
"(x) "Deputy Commissioner of State Tax" means any person appointed to be a Deputy Commissioner of State Tax under section 3 of this Act."
(f) clause (xiii) shall be omitted;
(g) for clause (xiiia), the following shall be substituted, namely:-
"(xiiia) "Joint Commissioner of State Tax" means any person appointed to be a Joint Commissioner of State Tax under section 3."
(h) after clause (xiiia), the following shall be inserted, namely:-
"(xiiib) "Joint Commissioner of State Tax (Appeals)" means any person appointed to be a Joint Commissioner of State Tax (Appeals) under section 3."
(i) clause (xxii) shall be omitted;
(j) after clause (xxiib), the following shall be inserted, namely:-
"(xxiic) "Special Commissioner of State Tax" means any person appointed to be a Special Commissioner of State Tax under section 3 of this Act;"
(k) after clause (xxiii), the following shall be inserted, namely:-
"(xxiiia) "State Tax Officer" means any person appointed to be a State Tax Officer under section 3 of this Act;".
(2) in section 3,-
(a) for sub-section (1), the following shall be substituted, namely:-
"The Commissioner of State Tax shall have and exercise all the powers and shall perform all the duties conferred or imposed upon him/her by or under this Act"
(b) in sub-section (1A), for the words "Board of Revenue" wherever it occurs, the words "Commissioner of State Tax" shall be substituted;
(c) in sub-section (2), for the words and symbols "The Goverment shall appoint as many Joint Commissioners, Deputy Commissioners, Appellate Assistant Commissioner, Inspecting Assistant Commissioners, Sales Tax Officers", the words, symbols and brackets "The Government shall, by notification, appoint as many Special Commissioner of State Tax, Additional Commissioners of State Tax, Additional Commissioners of State Tax (Appeals), Joint Commissioners of State Tax, Joint Commissioners of State Tax (Appeals), Deputy Commissioners of State Tax, Assistant Commissioners of State Tax, State Tax Officers" shall be substituted;
(d) in sub-section (3), in the proviso, for the words "Appellate Assistant Commissioner" the words "Appellate Authority" shall be substituted;
(e) in sub-section (4), for the words "Board of Revenue or the Deputy Commissioner" the words "Commissioner of State Tax or Joint Commissioner of State Tax" shall be substituted;
(3) in section 4, in sub-section (3), in clause (b), for the words "Sales Tax Officer" the words "Assistant Commissioner of State Tax" shall be substituted;
(4) in section 7A, in sub-section (2), for the word "Commissioner" the words "Commissioner of State Tax" shall be substituted;
(5) in section 15, in sub-section (3), for the words "Sales Tax Department" the words "State Goods and Services Tax Department" shall be substituted.
(6) in section 16,-
(a) in sub-section (3), for the words "Board of Revenue" the words "Commissioner of State Tax" shall be substituted;
(b) in sub-section (4), for the words "Board of Revenue" the words "Commissioner of State Tax" shall be substituted.
(7) in section 17,-
(a) in sub-section (4), in the first proviso,-
(i) for the words "Deputy Commissioner" the words "Joint Commissioner of State Tax" shall be substituted;
(ii) for the words "as may be specified by the Commissioner" the words "as may be specified by the Commissioner of State Tax" shall be substituted;
(b) in sub-section (6), in the fifth proviso, for the word "Commissioner" the words "Commissioner of State Tax" shall be substituted;
(c) in sub-section (7), for the words "Deputy Commissioner" the words "Joint Commissioner of State Tax" shall be substituted;
(d) in sub-section (8A), for the word "Commissioner" the words "Commissioner of State Tax" shall be substituted.
(8) in section 17D, in sub-section (2),-
(a) for clause (a), the following clause shall be substituted, namely:-
"(a) The assessment shall be completed by a 'team' comprising of a team of officers which shall be constituted by the Commissioner of State Tax. The team shall be headed by a Joint Commissioner of State Tax and comprise one Deputy Commissioner of State Tax and two Assistant Commissioners of State Tax/State Tax Officers as members";
(b) clause (b) shall be omitted;
(c) in clause (d), in the proviso, for the word "Commissioner" the words, "Commissioner of State Tax" shall be substituted.
(9) in section 18, in sub-section (1), for the words "Commissioner may designate any officer not below the rank of a Deputy Commissioner" the words, "Commissioner of State Tax may designate any officer not below the rank of a Joint Commissioner of State Tax" shall be substituted.
(10) in section 22, in sub-section (5), for the words "Commercial Taxes Department" the words, "State Goods and Services Tax Department" shall be substituted.
(11) in section 23 AA,-
(a) in the heading, for the words "Inspecting Assistant Commissioners" the words, "Deputy Commissioner of State Tax" shall be substituted;
(b) in sub-section (1), for the words "Inspecting Assistant Commissioner" the words, "Deputy Commissioner of State Tax" shall be substituted.
(12) in section 28,-
(a) in sub-section (2), in the proviso, for the words, "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(b) in sub-section (3), in the proviso, for the words, "Board of Revenue" the words, "Commissioner of State Tax" shall be substituted;
(c) in sub-section (7), in clause (b), for the words, "Board of Revenue" the words, "Commissioner of State Tax" shall be substituted.
(13) in section 28A, in sub-section (2), for the words, "Deputy Commissioner" wherever it occurs, the words, "Joint Commissioner of State Tax" shall be substituted.
(14) in section 29A,-
(a) in sub-section (2A), for the words "to any Check Post or office of the Agricultural Income Tax and Sales Tax Department " the words, "to any office of the State Goods and Services Tax Department" shall be substituted;
(b) in sub-section (3), for the words, "Sales Tax Officer" the words, "State Tax Officer" shall be substituted.
(15) section 30B shall be omitted.
(16) in section 30E,-
(a) in sub-section (3), for the words, "Inspecting Asistant Commissioner" the words, "Deputy Commissioner of State Tax" shall be substituted;
(b) in sub-section (8), for the words, "Deputy Commissioner" wherever it occurs, the words, "Joint Commissioner of State Tax" shall be substituted;
(c) in sub-section (9), for the word, "Commissioner" wherever it occurs, the words, "Commissioner of State Tax" shall be substituted.
(17) in section 34,-
(a) in the heading, for the words, "Appellate Asistant Commissioner" the words, "Appellate Authority" shall be substituted;
(b) in sub-section (1),-
(i) for the words and symbol "appeal against such order to the Appellate Assistant Commissioner:" the words and symbols "appeal against such order to-
(a) the Joint Commissioner of State Tax (Appeals) where such decision or order is passed by any officer up to and including the rank of a Deputy Commissioner of State Tax;
(b) the Additional Commissioner of State Tax (Appeals) where such decision or order is passed by the Joint Commissioner of State Tax" shall be substituted;
(ii) in the second proviso, for the words, "Appellate Assistant Commissioner" the words, "Appellate Authority" shall be substituted;
(iii) after the second proviso, the following proviso shall be inserted, namely:-
"Provided also that a dealer other than those whose cases involving disputed amounts have been settled, may, after the expiration of the said period, even if the appeal filed has not been admitted previously due to any reason, present a fresh appeal before the Appellate Authority on or before 30th September, 2023."
(iv) After the existing provisos, the following provisos shall be inserted, namely:-
"Provided also that, in cases, where the order against which the appeal filed is related to a financial year upto the 31st March, 2005; and the appellant remits 10 per cent of the disputed amount of tax, subject to a maximum of Rs. 5 Crore, further proceedings against recovery shall stand stayed till disposal of the appeal:
Provided also that where an appeal filed under this section is pending as on the 1st day of April, 2023, such appeal shall stand transferred to the appropriate authority under this Act and such authority shall consider the same as if it is an appeal filed before it;"
(c) in sub-section (3), for the words, "Appellate Assistant Commissioner" the words, "Appellate Authority" shall be substituted;
(d) in sub-section (3A), for the words, "Appellate Assistant Commissioner" the words, "Appellate Authority" shall be substituted;
(e) in sub-section (4), for the words, "Appellate Assistant Commissioner" the words, "Appellate Authority" shall be substituted;
(f) in sub-section (5), in the proviso, for the words, "Appellate Assistant Commissioner" the words, "Appellate Authority" shall be substituted;
(18) in section 35,-
(a) in the heading, for the words, "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(i) for the words, "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(ii) for the words "Appellate Assistant Commissioner" the words "Appellate Authority"shall be substituted;
(c) in sub-section (2),-
(ii) in clause (b), for the words "Appellate Assistant Commissioner" the words "Appellate Authority"shall be substituted;
(d) in sub-section (2A), for the words, "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted.
(19) in section 36,-
(b) in sub-section (1), for the words, "Deputy Commissioner" wherever it occurs, the words, "Joint Commissioner of State Tax" shall be substituted;
(c) in sub-section (3), for the words, "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(d) in sub-section (4), in the proviso, for the words, "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted.
(20) in section 37,-
(a) in the heading, for the words, "Board of Revenue" the words, "Commissioner of State Tax" shall be substituted;
(i) for the words, "Board of Revenue" the words, "Commissioner of State Tax" shall be substituted;
(ii) for the words "Appellate Assistant Commissioner" the words "Appellate Authority" shall be substituted;
(ii) in clause (b), for the words "Appellate Assistant Commissioner" the words "Appellate Authority" shall be substituted;
(d) in sub-section (2A), for the words, "Board of Revenue" the words, "Commissioner of State Tax" shall be substituted.
(21) in section 38,-
(ii) for the words, "Board of Revenue", wherever it occurs, the words, "Commissioner of State Tax" shall be substituted;
(c) in sub-section (3), for the words, "Board of Revenue" the words, "Commissioner of State Tax" shall be substituted;
(d) in sub-section (4), in the proviso, for the words, "Board of Revenue" the words, "Commissioner of State Tax" shall be substituted.
(22) in section 39,-
(a) in sub-section (1),-
(i) for the words "Appellate Assistant Commissioner" the words "Appellate Authority" shall be substituted;
(ii) for the words, "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(iii) after the existing proviso, the following proviso shall be inserted, namely:-
"Provided further that a dealer other than those whose cases involving disputed amounts have been settled, may, after the expiration of the said period, even if the appeal filed has not been admitted previously due to any reason, present a fresh appeal before the Appellate Authority on or before 30th September, 2023."
(b) in sub-section (2), for the words "Appellate Assistant Commissioner" wherever it occurs, the words "Appellate Authority" shall be substituted;
(c) After sub-seciton (2), the following sub-seciton shall be inserted, namely:-
"(2A) Where the order against which the appeal filed is related to a financial year upto 31st March, 2005; and the appellant remits a pre-deposit amount of 10 per cent of the disputed amount of tax, subject to a maximum of Rs. 5 Crores, the recovery proceedings for the balance amount shall be deemed to have stayed till disposal of the appeal.
Provided that the pre-deposit amount, if any, already remitted under section 34 shall be adjusted towards the amount to be remitted under this sub-section.
Provided further that, the pre-deposit amount, if any, paid in excess of the amount referred to in this sub-section shall not be refunded till the disposal of appeal:
(d) in sub-section (8),-
(ii) for the words, "Board of Revenue" the words, "Commissioner of State Tax" shall be substituted.
(23) in section 39A,-
(a) in sub-section (4), for the words, "Deputy Commissioner" wherever it occurs, the words, "Joint Commissioner of State Tax" shall be substituted;
(b) in sub-section (5), for the words, "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(c) in sub-section (8), for the words, "Deputy Commissioner" wherever it occurs, the words, "Joint Commissioner of State Tax" shall be substituted;
(d) in sub-section (9), for the words, "Deputy Commissioner" wherever it occurs, the words, "Joint Commissioner of State Tax" shall be substituted;
(e) in sub-section (13), for the words, "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted.
(24) in section 40,-
(a) in sub-section (4), for the words, "Board of Revenue" the words, "Commissioner of State Tax" shall be substituted;
(b) in sub-section (7), for the words, "Board of Revenue", wherever it occurs, the words, "Commissioner of State Tax" shall be substituted.
(25) in section 42A,-
(a) in item (a) for the words, "Appellate Assistant Commissioner or the Deputy Commissioner" the words, "Appellate Authority or the Joint Commissioner of State Tax" shall be substituted;
(b) in item (b), for the word, "Commissioner" the words, "Commissioner of State Tax" shall be substituted.
(26) in section 45A,-
(a) in sub-section (1), for the words, "Appellate Assistant Commissioner" the words, "Appellate Authority" shall be substituted;
(b) after sub-section (1), in explanation II, for the words, "Sales Tax Officer" the words, "State Tax Officer" shall be substituted;
(c) in sub-section (3),-
(i) for the words, "Deputy Commissioner" wherever it occurs, the words, "Joint Commissioner of State Tax" shall be substituted;
(ii) for the words, "Appellate Assistant Commissioner" the words, "Appellate Authority" shall be substituted;
(d) in sub-section (4), for the words, "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(e) in sub-section (5), for the words, "Board of Revenue", wherever it occurs, the words, "Commissioner of State Tax" shall be substituted;
(f) in sub-section (6), for the words, "Board of Revenue", the words, "Commissioner of State Tax" shall be substituted.
(27) in section 47, in the proviso, for the words, "Board of Revenue", the words, "Commissioner of State Tax" shall be substituted.
(28) in section 54, sub-section (2),-
(a) in clause (i) for the words, "Sales Tax Department of the State" the words, "State Goods and Services Tax Department" shall be substituted;
(b) in clause (ix), for sub-clause (a) and (b), the following shall be substituted, namely:-
"(a) the permission of the Joint Commissioner of State Tax, where such particulars are to be furnished by an officer subordinate to the Joint Commissioner of State Tax; and
(b) the permission of the Commissioner of State Tax, where such particulars are to be furnished by an officer not below the rank of a Joint Commissioner of State Tax.".
(29) in section 58A,-
(a) in sub-section (1), for the words, "Commercial Taxes Department" the words, "State Goods and Services Tax Department" shall be substituted;
(b) in sub-section (2),-
(i) for the words, "Commissioner" wherever it occurs, the words, "Commissioner of State Tax" shall be substituted;
(ii) for the words, "Commercial Taxes Department" the words, "State Goods and Services Tax Department" shall be substituted.
(30) in section 59A,-
(a) in the heading, for the words, "Commissioner of Commercial Taxes" the words, "Commissioner of State Tax" shall be substituted;
(b) in sub-section (1), in clause (e), for the words, "Commissioner of Commercial Taxes" the words, "Commissioner of State Tax" shall be substituted;
(c) in sub-section (2), for the words, "Commissioner of Commercial Taxes" the words, "Commissioner of State Tax" shall be substituted;
(d) in sub-section (5),-
(i) for the words, "Commissioner of Commercial Taxes" wherever it occurs, the words, "Commissioner of State Tax" shall be substituted;
(ii) for the words, "Commissioner including an Appellate Assistant Commissioner" the words, "Commissioner of State Tax including an Appellate Authority" shall be substituted;
(e) in sub-section (6), for the word, "Commissioner" wherever it occurs, the words, "Commissioner of State Tax" shall be substituted.
K.N BALAGOPAL