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.
8. Amendment of Act 30 of 2004.-
In the Kerala Value Added Tax Act, 2003 (30 of 2004),-
(1) in section 2,-
(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."
(b) after clause (ii), the following clause shall be inserted, namely:-
"(iia) "Appellate Authority" means an authority authorised to hear appeals as referred to in section 55."
(c) in clause (v), for the words, "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(d) for clause (vi), the following shall be substituted, namely:-
"(vi) Assistant Commissioner of State Tax" means any person appointed to be an Assistant Commissioner of State Tax under sub-section (3) of section 3."
(e) clause (via) shall be omitted.
(f) for clause (xii), the following shall be substituted, namely:-
"(xii) Commissioner of State Tax" means the Commissioner of State Tax appointed as such by the Government."
(g) clause (xiii) shall be omitted.
(h) for clause (xvi), the following shall be substituted, namely:-
"(xvi) Deputy Commissioner of State Tax" means any person appointed to be a Deputy Commissioner of State Tax under sub-section (3) of section 3."
(i) clause (xvii) shall be omitted.
(j) for clause (xxiv), the following shall be substituted, namely:-
"(xxiv) Joint Commissioner of State Tax" means any person appointed to be a Joint Commissioner of State Tax under sub-section (3) of section 3."
(k) for clause (xxiva), the following shall be substituted, namely:-
"(xxiva) "Joint Commissioner of State Tax (Appeals)" means any person appointed to be a Joint Commissioner of State Tax (Appeals) under sub-section (3) of section 3."
(l) after clause (xlvi), the following shall be inserted, namely:-
"(xlvia) "Special Commissioner of State Tax" means any person appointed to be a Special Commissioner of State Tax under sub-section (3) of section 3 of this Act."
(m) after clause (xlvii), the following shall be inserted, namely:-
"(xlviia) "State Tax Officer" means any person appointed to be a State Tax Officer under subsection (3) of section 3 of this Act"
(2) in section 3,-
(a) in sub-section (1), for the word, "Commissioner" wherever it occurs, the words, "Commissioner of State Tax" shall be substituted;
(b) in sub-section (2), for the word, "Commissioner" wherever it occurs, the words, "Commissioner of State Tax" shall be substituted;
(c) in sub-section (3),-
(i) for the words, "Government shall appoint as many Joint Commissioners, Joint Commissioner (Appeals), Deputy Commissioners, Deputy Commissioner (Appeals), Assistant Commissioner (Appeals), Assistant Commissioners, Commercial Tax Officers" the words, brackets and symbols "The Government shall, by notification, appoint as many Special Commissioners of State Tax, Additional Commissioners of State Tax, Additional Commissioners of State Tax (Appeals), Joint Commissioners of State Tax, Joint Commissioner of State Tax (Appeals), Deputy Commissioners of State Tax, Assistant Commissioners of State Tax, State Tax Officers" shall be substituted;
(ii) for the words, "Commissioner may assign" the words, "Commissioner of State Tax may assign" shall be substituted;
(d) in sub-section (4), in the proviso, for the words brackets and symbol, "Joint Commissioner (Appeals), Deputy Commissioner (Appeals) and Assistant Commissioner (Appeals)" the words, "Appellate Authority" shall be substituted;
(e) in sub-section (5), for the words and symbol, "Commissioner or the Deputy Commissioner" the words, "Commissioner of State Tax or the Joint Commissioner of State Tax" shall be substituted;
(3) in section 4, in sub-section (4), in clause (iv), for the words, "Commercial Tax Officer " the words, "Assistant Commissioner of State Tax" shall be substituted.
(4) section 8 shall be omitted.
(5) in section 18, in sub-section (1), for the words, "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted.
(6) section 18C shall be omitted.
(7) in section 20,-
(a) in sub-section (2A), in the proviso, for the word, "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(b) in sub-section (3), for the word, "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(c) in sub-section (4), for the word, "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(8) in section 20A, in sub-section (1), for the words, "Deputy Commissioners" the words, "Joint Commissioners of State Tax" shall be substituted.
(9) in section 23, in sub-section (1), for the words, "Deputy Commissioners" the words, "Joint Commissioners of State Tax" shall be substituted.
(10) in section 25B, for the words, "Deputy Commissioner" the words, "Joint Commissioners of State Tax" shall be substituted.
(11) in section 33,-
(a) in the heading, for the words, "Assistant Commissioners" the words, "Deputy Commissioners of State Tax" shall be substituted;
(b) in sub-section (1), for the words, "Assistant Commissioner" the words, "Deputy Commissioner of State Tax" shall be substituted.
(12) in section 42, in sub-section (2), in the fourth proviso, for the word, "Commissioner" the words, "Commissioner of State Tax" shall be substituted.
(13) in section 43, in the proviso, for the word, "Commissioner" the words, "Commissioner of State Tax" shall be substituted.
(14) in section 44,-
(a) in sub-section (3), in the proviso, for the word "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(b) in sub-section (7), in clause (b) and (f), for the word, "Commissioner" the words, "Commissioner of State Tax" shall be substituted.
(15) in section 47,-
(a) in sub-section (3), for the words "or to any check post or to the office of the Commercial Tax Department" the words, "to the office of the State Goods and Services Tax Department" shall be substituted;
(b) in sub-section (5), for the words, "Commercial Tax Officer" the words, "State Tax Officer" shall be substituted;
(c) in sub-section (16A), for the word, "Commissioner" the words, "Commissioner of State Tax" shall be substituted.
(16) section 48 shall be omitted.
(17) in section 49,-
(a) in sub-section (1), for the words "Commercial Tax Officer" the words, "State Tax Officer" shall be substituted;
(b) in sub-section (2), for the words, "Assistant Commissioner" the words, "Deputy Commissioner of State Tax" shall be substituted;
(c) in sub-section (6), for the words, "Deputy Commissioner" wherever it occurs, the words "Joint Commissioner of State Tax" shall be substituted;
(d) in sub-section (7), for the word, "Commissioner" wherever it occurs, the words "Commissioner of State Tax" shall be substituted;
(e) in sub-section (8A), for the word, "Commissioner" the words "Commissioner of State Tax" shall be substituted.
(18) in section 54, in the proviso, for the words "Deputy Commissioner", the words "Joint Commissioner of State Tax" shall be substituted.
(19) in section 55,-
(a) in the heading, for the words, symbols and brackets "Joint Commissioner (Appeals), Deputy Commissioner (Appeals) and Assistant Commissioner (Appeals)" the words, "Appellate Authority" shall be substituted;
(b) in sub-section (1),-
(1) for the words "above the rank of an Assistant Commissioner" the words, "above the rank of Joint Commissioner of State Tax" shall be substituted;
(2) for clause (i) and (ii), the following clauses shall be substitutted, namely:-
"(i) to 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;
(ii) to the Additional Commissioner of State Tax (Appeals) where such decision or order is passed by the Joint Commissioner of State Tax:"
(3) for the second and third provisos, the following provisos shall be substituted, namely:-
"Provided further that the Appellate Authority may admit an appeal presented after the expiration of the said period if he is satisfied that the appellant had sufficient cause for not presenting the appeal within the said period:
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) Before the existing fourth proviso, the following proviso shall be inserted, namely:-
"Provided also that where an appeal filed under this section is pending as on the 1 st 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 (4),-
(i) in the first proviso, for the words, symbols and brackets "Joint Commissioner (Appeals), Deputy Commissioner (Appeals) and Assistant Commissioner (Appeals)" the words, "Appellate Authority" shall be substituted;
(ii) in the second proviso, for the figures, symbol and words "20% of the disputed amount of tax" the words, symbols and figures "a pre-deposit amount of 10 per cent of the disputed amount of tax, subject to a maximum of Rs. 5 Crores" shall be substituted;
(d) in sub-section (5),-
(i) for the words, symbols and brackets "Joint Commissioner (Appeals), Deputy Commissioner (Appeals) and Assistant Commissioner (Appeals)" the words, "Appellate Authority" shall be substituted;
(ii) in the first proviso, for the word "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(iii) in the second proviso, for the words and brackets "Deputy Commissioner (Appeals)" the words, " Appellate Authority" shall be substituted;
(e) in sub-section (6), for the words, symbols and brackets "Joint Commissioner (Appeals), Deputy Commissioner (Appeals) and Assistant Commissioner (Appeals)" the words, "Appellate Authority" shall be substituted;
(f) in sub-section (7), for the words, symbols and brackets "Joint Commissioner (Appeals), Deputy Commissioner (Appeals) and Assistant Commissioner (Appeals)" the words, "Appellate Authority" shall be substituted.
(20) in section 56,-
(a) in the heading, for the words "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(b) in sub-section (1), for the words "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(c) in sub-section (2),-
(i) for the words "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(ii) in clause (b), for the words and brackets "Deputy Commissioner (Appeals) or the Assistant Commissioner (Appeals)" the words "Appellate Authority" shall be substituted;
(d) in sub-section (3), for the words "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted.
(21) in section 57,-
(i) for the words "proceeding to the Deputy Commissioner" the words, "proceeding to the Joint Commissioner of State Tax" shall be substituted;
(ii) in the first proviso, for the words "Provided that the Deputy Commissioner" the words, "Provided that the Joint Commissioner of State Tax" shall be substituted;
(iii) in the second proviso, for the words and brackets "Deputy Commissioner (Appeals) or Assistant Commissioner (Appeals)" the words, "Appellate Authority" shall be substituted;
(i) for the words "the Deputy Commissioner may" the words, "the Joint Commissioner of State Tax may" shall be substituted;
(ii) in the proviso, for the words and brackets "Deputy Commissioner (Appeals)" the words, "Appellate Authority" shall be substituted;
(d) in sub-section (4), in the proviso, for the words "the Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(22) in section 58,-
(a) in the heading, for the words "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(i) for the word "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(ii) for the words, symbols and brackets "Joint Commissioner (Appeals), Deputy Commissioner (Appeals) or Assistant Commissioner (Appeals)" the words, "Appellate Authority" shall be substituted;
(ii) in clause (b), for the words, symbols and brackets "Joint Commissioner (Appeals), Deputy Commissioner (Appeals) or Assistant Commissioner (Appeals)" the words, "Appellate Authority" shall be substituted;
(d) in sub-section (3), for the word "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(23) in section 58A,-
(a) in the heading, for the words and brackets "Commissioner suo-motu on the orders passed by Deputy Commissioner (Appeals)" the words, "Commissioner of State Tax suo-motu on the orders passed by Appellate Authority" shall be substituted;
(i) for the words "Commissioner or any Joint Commissioner" the words, "Commissioner of State Tax or Additional Commissioner of State Tax" shall be substituted;
(ii) for the words and brackets "Deputy Commissioner (Appeals) or Assistant Commissioner (Appeals)" the words, "Appellate Authority" shall be substituted;
(c) in sub-section (2), for the words "Commissioner or Joint Commissioner" the words, "Commissioner of State Tax or Additional Commissioner of State Tax" shall be substituted;
(d) in sub-section (3), for the word "Commissioner" the words, "Commissioner of State Tax" shall be substituted.
(24) in section 59,-
(a) in the heading, for the word "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(i) for the words and brackets "Deputy Commissioner other than an order of Joint Commissioner (Appeals), Deputy Commissioner (Appeals) or Assistant Commissioner (Appeals)" the words, "Joint Commissioner of State Tax other than an order of the Appellate Authority" shall be substituted;
(ii) for the words "such order to Commissioner" the words, "such order to the Commissioner of State Tax" shall be substituted;
(iii) in the proviso, for the word "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(c) in sub-section (3), in the proviso, for the word "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(d) in sub-section (4), for the word "Commissioner" the words, "Commissioner of State Tax" shall be substituted;
(25) in section 60,-
(a) in sub-section (1),-
(ii) after the first 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."
(iii) in the existing second proviso, for the words "Provided further that" the words, "Provided also" shall be substituted;
(iv) in the existing third proviso, for the words "Deputy Commissioner" the words, "Joint Commissioner of State Tax" shall be substituted;
(b) after sub-section (1), the following sub-section shall be inserted, namely:-
"(1A) Where 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 55 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:
(c) in sub-section (2), for the words, symbols and brackets "Joint Commissioner (Appeals), Deputy Commissioner (Appeals) and Assistant Commissioner (Appeals)" wherever it appears, the words, "Appellate Authority" shall be substituted;
(d) in sub-section (9), for the words, and symbol "Deputy Commissioner concerned, and the Commissioner", the words, and symbol "Joint Commissiner of State Tax concerned, and the Commissioner of State Tax" shall be substituted.
(26) in section 61,-
(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.
(27) in section 62,-
(a) in sub-section (4), for the word "Commissioner " the words, "Commissioner of State Tax" shall be substituted;
(b) in sub-section (7), for the word "Commissioner " the words "Commissioner of State Tax" shall be substituted;
(c) in sub-section (8), for the word "Commissioner " the words, "Commissioner of State Tax" shall be substituted.
(28) in section 63, in sub-section (1), for the word "Commissioner " wherever it occurs, the words "Commissioner of State Tax" shall be substituted.
(29) in section 65,-
(a) for the words, symbols and brackets "Joint Commissioner (Appeals), Deputy Commissioner (Appeals), Assistant Commissioner (Appeals)" the words "Appellate Authority" shall be substituted;
(b) for the words "Before the Commissioner" the words "Before the Commissioner of State Tax" shall be substituted.
(30) in section 74, in sub-section (1), in clause (b), in the proviso, for the word "Commissioner" the words "Commissioner of State Tax" shall be substituted.
(31) in section 82, in the proviso, for the words "Deputy Commissioner" the words "Joint Commissioner of State Tax" shall be substituted.
(32) in section 85,-
(a) in sub-section (2), in clause (i),for the words "Commercial Tax Department of the State" the words "State Goods and Services Tax Department" shall be substituted;
(b) in clause (x), 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:"
(c) in sub-section (3), for the word "Commissioner" the words "Commissioner of State Tax" shall be substituted.
(33) in section 93A,-
(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 word "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.
(34) in section 94,-
(a) in sub-section (1), in clause (e), for the words "Joint Commissioner or Deputy Commissioner nominated by the Commissioner" the words "Additional Commissioner of State Tax or Joint Commissioner of State Tax nominated by the Commissioner of State Tax" shall be substituted;
(b) in sub-section (2), for the word "Commissioner" wherever it occurs, the words "Commissioner of State Tax" shall be substituted;
(c) in sub-section (5), for the words, symbols and brackets "Joint Commissioner (Appeals), Deputy Commissioner (Appeals), Assistant Commissioner (Appeals)" the words "Appellate Authority" shall be substituted;
(d) in sub-section (6), for the word "Commissioner" the words "Commissioner of State Tax" shall be substituted;
(e) in sub-section (7), for the word "Commissioner" the words "Commissioner of State Tax" shall be substituted;
(f) in sub-section (8), for the word "Commissioner" wherever it occurs, the words "Commissioner of State Tax" shall be substituted.
K.N BALAGOPAL