Kerala VAT Amnesty Scheme – 2020 for settlement of arrears-reg.

The Government of Kerala has vide Circular No. 02/2020 dated April 04, 2020 introduced an Amnesty Scheme, 2020 whereby taxpayers can settle all the outstanding tax dues pertaining to the period before GST introduction. The Amnesty scheme will be applicable for all pending tax arrears including cases in appeals (except arrears under KGST from 2005 onwards).

The scheme is extended up to 30 September 2020. Option to avail the amnesty scheme should be made on or before 30 September 2020.The last date for payment of the amount determined under the scheme shall be 31.03.2021.

The scheme shall apply to the outstanding dues under following Statutes such as:

• Kerala Value Added Tax Act,
• Central Sales Tax Act,
• Tax on Luxuries Act,
• Kerala Surcharges Act,
• Kerala Agriculture Income Tax Act, and
• Kerala General Sales Tax Act.

The Key highlights of the amnesty Scheme are:

• 100% waiver of interest and penalties.
• 60% waiver of the balance tax arrear, if outstanding dues paid in a lump sum.
• 50% waiver of the balance tax arrear, if outstanding dues paid in installments.
• Tax or interest paid after receipt of demand notice shall be given due credit towards tax.
• The taxpayer who has failed to settle arrears under the previous amnesty scheme can also opt for this scheme.
• Any amount paid under the earlier amnesty scheme shall be given due credit.
• Those who have compounded offences and paid tax in such proceedings, such tax will be given credit.
• No refund shall be allowed under the scheme.

KVAT State GST Link: Click here

Circular No.2/2020 dated 04.04.2020: Click here