The Kerala State Gooda and Services Tax Act, 2017 ( 20 of 2017)

©
tIcf k¿°m¿
Government  of  Kerala
2017
Regn. No. KERBIL/2012/45073
dated  5-9-2012  with  RNI
Reg. No. K L/ TV(N)/634/2015-17
tIcf Kkddv
KERALA   GAZETTE
Akm[mcWw
EXTRAORDINARY
B[nImcnIambn  {]kn≤s∏SpØp∂Xv
PUBLISHED  BY  AUTHORITY
Xncph\¥]pcw,
i\n
Thiruvananthapuram,
Saturday
hmeyw 6
Vol.  VI
1981
\º¿
No.
}
2017 sk]v‰w-_¿  16
16th September 2017
1193 Nnßw 31
31st Chingam 1193
1939 `m{Zw 25
25th Bhadra 1939
}
GOVERNMENT OF KERALA
Law (Legislation -A) Department
NOTIFICATION
No. 10017/Leg.A2/2017/Law.
                 Dated, Thiruvananthapuram,
The following Act of the 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 16th day of September, 2017.
By order of the Governor,
B. G. HARINDRANATH,
Law Secr etary.
16th September , 2017
31st  Chingam, 1 193
    25th Bhadra, 1939.
 33/3241/2017/S-15.
PRINTED AND PUBLISHED BY THE SUPERINTENDENT OF GOVERNMENT PRESSES
AT THE GOVERNMENT  CENTRAL  PRESS, THIRUVANANTHAPURAM, 2017.
2
ACT 20 OF 2017
THE KERALA  STATE GOODS AND SERVICES TAX ACT, 2017
An Act to pr ovide for levy and collection of tax on intra-S tate supply
of goods  or ser vices or both by the S tate of Kerala and for
matters connected ther ewith or incidental ther eto.
Preamble.—W HEREAS, it is expedient to make provision for levy and
collection of tax on intra-State supply of goods or services, or both by the
State of Kerala and for matters connected therewith or incidental thereto;
BE it enacted in the Sixty-eighth Year of the Republic of India as
follows:—
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.— (1) This Act may be called
the Kerala S tate Goods and Services Tax Act, 2017.
(2) It  extends to the whole of the State of Kerala.
(3) Save as otherwise provided in this Act,—
(a)  sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30,
139, 146 and 164 of this Act shall be deemed to have come into force on
the 22nd day of June, 2017;
(b) sections 6 to 9, 1 1 to 21, 31 to 41, 42 except the proviso
to sub-section (9) of section 42, 43 except the proviso to sub-section (9)
of section 43, 44 to 50, 53 to 138, 140 to 145, 147 to 163, 165 to 174
of this Act shall be deemed to have come into force on the 1st day of
July, 2017;
(c) the remaining provisions of this Act shall come into force
on such date as the Government may , by notification in the Gazette,
appoint.
2. Definitions.— In this Act, unless the context otherwise req uires,––
(1) “actionable claim ”  shall have the same meaning as assigned
to it in section 3 of the Transfer of Property Act, 1882 (Central Act 4 of
1882);
3
(2) “address of delivery” means the address of the recipient of
goods or services or both indicated on the tax invoice issued by a
registered person for delivery of such goods or services or both;
(3) 
“address on record” means the address of the recipient as
available in the records of the supplier;
(4) “adjudicating authority” means any authority , appointed or
authorised to pass any order or decision under this Act, but does not
include the Commissioner, Revisional Authority, the Authority for Advance
Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority
and the Appellate Tribunal;
(5) “agent” means a person, including a factor , broker, commission
agent, arhatia, del cr edere agent, an auctioneer or any other mercantile
agent, by whatever name called, who carries on the business of supply or
receipt of goods or services or both on behalf of another;
(6) “aggregate turnover” means the aggregate value of all taxable
supplies (excluding the value of inward supplies on which tax is payable
by a person on reverse charge basis), exempt supplies, exports of goods
or services or both and inter-State supplies of persons having the same
Permanent Account Number , to be computed on all India basis but
excludes Central tax, State tax, Union territory tax, integrated
tax and cess;
(7) “agriculturist” means an individual or a Hindu Undivided Family
who  undertakes cultivation of land,—
(a)  by own labour , or
(b)  by the labour of family , or
(c)  by servants on wages payable in cash or kind or by hired
labour under personal supervision or the personal supervision of any
member of the  family;
(8) “Appellate Authority” means an authority appointed or
authorised to hear appeals as referred to in section 107;
4
(9) “Appellate Tribunal” means the Goods and Services Tax
Appellate Tribunal constituted under section 109;
(10)  “appointed day” means the date on which the provisions of
this Act shall come into force;
(11) “assessment” means determination of tax liability under this
Act and includes self-assessment, re-assessment, provisional assessment,
summary assessment and best judgment assessment;
(12) “associated enterprises” shall have the same meaning as
assigned to it in section 92A  of the Income Tax Act, 1961 (Central Act
43 of 1961);
(13) “audit” means the examination of records, returns and other
documents maintained or furnished by the registered person under this Act
or the rules made thereunder or under any other law for the time being
in force to verify the correctness of turnover declared, taxes paid, refund
claimed and input tax credit availed, and to assess his compliance with the
provisions of this 
Act or the rules made thereunder;
(14)  “authorised  bank” shall mean a bank or a branch of a
bank authorised by the Central Government to collect the tax or any other
amount payable under this Act;
(15) 
“authorised representative” means the representative as
referred to in section 1 16;
(16) “Board” means the Central Board of Excise and Customs
constituted under the Central Boards of Revenue Act, 1963 (Central Act
54 of 1963);
(17) “business” includes,––
(a)  any trade, commerce, manufacture, profession, vocation,
adventure, wager  or any other similar activity , whether or not it is for a
pecuniary benefit;
(b) any activity or transaction in connection with or incidental
or ancillary to sub-clause (a);
5
(c) any activity or transaction in the nature of sub-clause (a),
whether or not there is volume, frequency , continuity or regularity of such
transaction;
(d) supply or acquisition of goods including capital goods and
services in connection with commencement or closure of business;
(e) provision by a club, association, society , or any such body
(for a subscription or any other consideration) of the facilities or benefits
to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office
which has been accepted by him in the course or furtherance of his trade,
profession or vocation;
(h) services provided by a race club by way of totalisator or
a licence to book maker in such club; and
(i) any activity or transaction undertaken by the Central
Government, a State Government or any local authority in which they are
engaged as public authorities;
(18) “business vertical” means a distinguishable component of an
enterprise that is engaged in the supply of individual goods or services or
a group of related goods or services which is subject to risks and returns
that are different from those of the other business verticals.
Explanation:––For the purposes of this clause, factors that should be
considered in determining whether goods or services are related include,—
(a) the nature of the goods or services;
(b) the nature of the production processes;
(c) the type or class of customers for the goods or services;
(d) the methods used to distribute the goods or supply of
services; and
(e) the nat ure of regulatory environment (wherever applicable),
including banking, insurance or public utilities;
6
(19) “capital goods” means goods, the value of which is
capitalised in the books of account of the person claiming the input tax
credit and which are used or intended to be used in the course or
furtherance of business;
(20) “casual taxable person” means a person who occasionally
undertakes transactions involving supply of goods or services or both in the
course or furtherance of business, whether as principal, agent or in any
other capacity , in the taxable territory where he has no fixed place of
business;
(21) “central tax” means the central goods and services tax levied
under section 9 of the Central Goods and Services Tax Act, 2017 (Central
Act 12 of 2017);
(22) 
“cess” shall have the same meaning as assigned to it in the
Goods and Services Tax (Compensation to S tates) Act, 2017 (Central Act
15 of 2017);
(23) “chartered accountant” means a chartered accountant as
defined in clause (b) of sub-section (1) of section 2 of the Chartered
Accountants Act, 1949 (Central Act 38 of 1949);
(24) “Commissioner” means the Commissioner of State tax
appointed under section 3 and includes the Principal Commissioner or
Chief Commissioner of State tax appointed under section 3;
(25) “Commissioner in the Board” means the Commissioner
referred to in section 168 of the Central Goods and Services Tax Act,
2017 (Central Act 12 of 2017);
(26) “common portal” means the common goods and services tax
electronic portal referred to in section 146;
(27) “common working days” shall mean such days in succession
which are not declared as gazetted holidays by the Central Government or
the Government;
(28) “company secretary” means a company secretary as defined
in clause (c) of sub-section (1) of section 2 of the Company Secretaries
Act, 1980 (Central Act 56 of 1980);
7
(29) “competent authority” means such authority as may be
notified by the Government;
(30) “composite supply” means a supply made by a taxable
person to a recipient consisting of two or more taxable supplies of goods
or services or both, or any combination thereof, which are naturally
bundled and supplied in conjunction with each other in the ordinary course
of business, one of which is a principal supply;
Illustration:—Where goods are packed and transported with insurance ,
the supply of goods, packing materials, transport and insurance is a
composite supply and supply of goods is a principal supply;
(31) “consideration” in relation to the supply of goods or services
or both includes,––
(a) any payment made or to be made, whether in money or
otherwise, in respect of, in response to, or for the inducement of, the
supply of goods or services or both, whether by the recipient or by any
other person but shall not include any subsidy given by the Central
Government or a State Government;
(b) the monetary value of any act or forbearance, in respect
of, in  response to, or for the inducement of, the supply of goods or
services or both, whether by the recipient or by any other person but shall
not include any subsidy given by the Central Government or a State
Government:
Provided that a deposit given in respect of the supply of goods or
services or both shall not be considered as payment made for such supply
unless the supplier applies such deposit as consideration for the said
supply;
(32) “continuous supply of goods” means a supply of goods which
is provided, or agreed to be provided, continuously or on recurrent basis,
under a contract, whether or not by means of a wire, cable, pipeline or
other conduit, and for which the supplier invoices the recipient on a
regular or periodic basis and includes supply of such goods as the
Government may , subject to such conditions, as it may , by notification,
specify;
8
(33) “continuous supply of services” means a supply of services
which is provided, or agreed to be provided, continuously or on recurrent
basis, under a contract, for a period exceeding three months with periodic
payment obligations and includes supply of such services as the
Government may , subject to such conditions, as it may , by notification,
specify;
(34) “conveyance” includes a vessel, an aircraft and a vehicle;
(35) “cost accountant” means a cost accountant as defined in
clause (c) of sub-section (1) of section 2 of the Cost and Works
Accountants Act, 1959 (Central Act 23 of 1959);
(36) “Council” means the Goods and Services Tax Council
established under article 279A of the Constitution;
(37) “credit note” means a document issued by a registered
person under sub-section (1) of section 34;
(38) “debit note” means a document issued by a registered person
under sub-section (3) of section 34;
(39) “deemed exports” means such supplies of goods as may be
notified under section 147;
(40) “designated authority” means such authority as may be
notified by the Commissioner;
(41) “document” includes written or printed record of any sort and
electronic record as defined in clause (t) of section 2 of the Information
Technology Act, 2000 (Central Act 21 of 2000);
(42) “drawback” in relation to any goods manufactured in India
and exported, means the rebate of duty , tax or cess char geable on any
imported inputs or on any domestic inputs or input services used in the
manufacture of such goods;
(43) “electronic cash ledger” means the electronic cash ledger
referred to in sub-section (1) of section 49;
9
(44) “electronic commerce” means the supply of goods or services
or both, including digital products over digital or electronic network;
(45) “electronic commerce operator” means any person who
owns, operates or manages digital or electronic facility or platform for
electronic commerce;
(46) “electronic credit ledger” means the electronic credit ledger
referred to in sub-section (2) of section 49;
(47) “exempt supply” means supply of any goods or services or
both which attracts nil rate of tax or which may be wholly exempt from
tax under section 1 1, or under section 6 of the Integrated Goods and
Services Tax Act, 2017 (Central Act 13 of 2017) and includes non-taxable
supply;
(48) “existing law” means any law , notification, order , rule or
regulation relating to levy and collection of duty or tax on goods or
services or both passed or made before the commencement of this Act by
the Legislature or any Authority or person having the power to make
such law, notification, order, rule or regulation;
(49) “family” means,—
(i) the spouse and children of the person; and
(ii) the parents, grand-parents, brothers and sisters of the
person if they are wholly or mainly dependent on the said person;
(50) “fixed establishment” means a place (other than the
registered place of business) which is characterised by a sufficient degree
of permanence and suitable structure in terms of human and technical
resources to supply services, or to receive and use services for its own
needs;
(51) “Fund” means the Consumer Welfare Fund established under
section 57;
(52) “goods’’ means every kind of movable property other than
money and securities but includes actionable claim including Lotteries
conducted in accordance with the Lotteries Regulation Act, 1998 (Central
Act 17 of 1998) and rules made thereunder ,  growing crops, grass and
 33/3241/2017/S-15.
10
things attached to or forming part of the land which are agreed to be
severed before supply or under a contract of supply;
(53) “Government” means the Government of Kerala;
(54) “Goods and Services Tax (Compensation to S tates) Act”
means the Goods and Services Tax (Compensation to S tates) Act, 2017
(Central Act 15 of 2017);
(55) “goods and services tax practitioner” means any person who
has been approved under section 48 to act as such practitioner;
(56) “India” means the territory of India as referred to in article 1
of the Constitution, its territorial waters, seabed and sub-soil underlying
such waters, continental shelf, exclusive economic zone or any other
maritime zone as referred to in the Territorial Waters, Continental Shelf,
Exclusive Economic Zone and other Maritime Zones Act, 1976 (Central
Act 80 of 1976) and the air space above its territory and territorial waters;
(57) “Integrated Goods and Services Tax Act” means the
Integrated Goods and Services Tax Act, 2017 (Central Act 13 of 2017);
(58) “integrated tax” means the integrated goods and services tax
levied under the Integrated Goods and Services Tax Act, 2017 (Central
Act 13 of 2017);
(59) “input” means any goods other than capital goods used or
intended to be used by a supplier in the course or furtherance of business;
(60) “input service” means any service used or intended to be
used by a supplier in the course or furtherance of business;
(61) “Input Service Distributor” means an office of the supplier of
goods or services or both which receives tax invoices issued under
section 31 towards the receipt of input services and issues a prescribed
document for the purposes of distributing the credit of central tax, State tax,
integrated tax or Union territory tax paid on the said services to a supplier
of taxable goods or services or both having the same Permanent Account
Number as that of the said office;
11
(62) “input tax” in relation to a registered person, means the
central tax, State tax, integrated tax or Union territory tax charged on any
supply of goods or services or both made to him and includes,—
(a) the integrated goods and services tax charged on import of
goods;
(b) the tax payable under the provisions of sub-sections (3)
and (4) of section 9;
(c) the tax payable under the provisions of sub-sections (3)
and (4) of section 5 of the Integrated Goods and Services Tax Act, 2017
(Central  Act 13 of 2017); or
(d)  the tax payable under the provisions of sub-sections (3)
and (4) of section 9 of the Central Goods and Services Tax Act, 2017
(Central Act 12 of 2017);
but does not include the tax paid under the composition levy;
(63) “input tax credit” means the credit of input tax;
(64) “intra-State supply of goods” shall have the same meaning as
assigned to it in section 8 of the Integrated Goods and Services Tax Act,
2017 (Central Act 13 of 2017);
(65) “intra-State supply of services” shall have the same meaning
as assigned to it in section 8 of the Integrated Goods and Services Tax
Act, 2017 (Central Act 13 of 2017);
(66) “invoice” or “tax invoice” means the tax invoice referred to
in section 31;
(67) “inward supply” in relation to a person, shall mean receipt of
goods or services or both whether by purchase, acquisition or any other
means, with or without consideration;
(68) “job work” means any treatment or process undertaken by a
person on goods belonging to another registered person and the expression
“job worker” shall be construed accordingly;
12
(69) “local authority” means,––
(a) a “Panchayat” as defined in clause (d) of article 243 of
the Constitution;
(b) a “Municipality” as defined in clause (e) of article 243P
of the Constitution;
(c) a Municipal Committee, a Zilla Parishad, a District Board
and any other authority legally entitled to, or entrusted by the Central
Government or any State Government with the control or management of
a municipal or local fund;
(d) a Cantonment Board as defined in section 3 of the
Cantonments Act, 2006 (Central Act 41 of 2006);
(e) a Regional Council or a District Council constituted
under the Sixth Schedule to the Constitution;
(f) a Development Board constituted under article 371 of
the Constitution; or
(g) a Regional Council constituted under article 371A of
the Constitution;
(70) “location of the recipient of services” means,—
(a) where a supply is received at a place of business for
which the registration has been obtained, the location of such place of
business;
(b) where a supply is received at a place other than the
place of business for which registration has been obtained (a fixed
establishment elsewhere), the location of such fixed establishment;
(c) where a supply is received at more than one
establishment, whether the place of business or fixed establishment, the
location of the establishment most directly concerned with the receipt of
the supply; and
(d)  in absence of such places, the location of the usual place
of residence of the recipient;
13
(71) “location of the supplier of services” means,—
(a) where a supply is made from a place of business for
which the registration has been obtained, the location of such place of
business;
(b) where a supply is made from a place other than the
place of business for which registration has been obtained (a fixed
establishment elsewhere), the location of such fixed establishment;
(c) where a supply is made from more than one
establishment, whether the place of business or fixed establishment, the
location of the establishment most directly concerned with the provisions of
the supply; and
(d) in absence of such places, the location of the usual place
of residence of the supplier;
(72) “manufacture” means processing of raw material or inputs in
any manner that results in emergence of a new product having a distinct
name, character and use and the term “manufacturer” shall be construed
accordingly;
(73) “market value” shall mean the full amount which a recipient
of a supply is required to pay in order to obtain the goods or services or
both of like kind and quality at or about the same time and at the same
commercial level where the recipient and the supplier are not related;
(74) “mixed supply” means two or more individual supplies of
goods or services, or any combination thereof, made in conjunction with
each other by a taxable person for a single price where such supply does
not constitute a composite supply;
Illustration:— A supply of a package consisting of canned foods,
sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when
supplied for a single price is a mixed supply . Each of these items can be
supplied separately and is not dependent on any other . It shall not be a
mixed supply if these items are supplied separately;
(75) “money” means the Indian legal tender or any foreign
currency, cheque, promissory note, bill of exchange, letter of credit, draft,
pay order, traveller cheque, money order , postal or electronic remittance or
14
any other instrument recognized by the Reserve Bank of India when used
as a consideration to settle an obligation or exchange with Indian legal
tender of another denomination but shall not include any currency that is
held for its numismatic value;
(76) “motor vehicle” shall have the same meaning as assigned to it
in clause (28) of section 2 of the Motor Vehicles Act, 1988 (Central Act
59 of 1988);
(77) “non-resident taxable person” means any person who
occasionally undertakes transactions involving supply of goods or services
or both, whether as principal or agent or in any other capacity , but who
has no fixed place of business or residence in India;
(78) “non-taxable supply’’ means a supply of goods or services or
both which is not leviable to tax under this Act or under the Integrated
Goods and Services Tax Act, 2017 (Central  Act 13 of 2017);
(79) “non-taxable territory” means the territory which is outside the
taxable territory;
(80) “notification” means a notification published in the Official
Gazette and the expressions “notify” and “notified” shall be construed
accordingly;
(81) “other territory” includes territories other than those
comprising in a State and those referred to in sub-clauses (a) to (e) of
clause (114);
(82) “output tax” in relation to a taxable person, means the tax
chargeable under this Act on taxable supply of goods or services or both
made by him or by his agent but excludes tax payable by him on reverse
charge basis;
(83) “outward supply” in relation to a taxable person, means supply
of goods or services or both, whether by sale, transfer , barter, exchange,
licence, rental, lease or disposal or any other mode, made or agreed to be
made by such person in the course or  furtherance of business;
(84) “person”  includes,—
(a) an individual;
15
(b) a Hindu Undivided Family;
(c) a company;
(d) a firm;
(e) a Limited Liability Partnership;
(f) an association of persons or a body of individuals, whether
incorporated or not, in India or outside India;
(g) any corporation established by or under any Central Act,
State Act or Provincial Act or a Government company as defined in
clause (45) of section 2 of the Companies Act, 2013 (Central Act 18 of
2013);
(h) any body corporate incorporated by or under the laws of
a country outside India;
(i)  a co-operative society registered under any law relating
to co-operative societies;
(j) a local authority;
(k) Central Government or a State Government;
(l) society as defined under the Societies Registration Act,
1860 (Central Act 21 of 1860);
(m) trust; and
(n) every artificial juridical person, not falling within any of the
above;
(85) “place of business” includes,––
(a) a place from where the business is ordinarily carried on,
and includes a warehouse, a godown or any other place where a taxable
person stores his goods, supplies or receives goods or services or both; or
(b) a place where a taxable person maintains his books of
account; o r
(c) a place where a taxable person is engaged in business
through an agen t, by whatever name called;
16
(86) “place of supply” means the place of supply as referred to in
Chapter V of the Integrated Goods and Services Tax Act, 2017 (Central
Act 13 of 2017);
(87) “prescribed’’ means prescribed by rules made under this Act
on the recommendations of the Council;
(88) “principal” means a person on whose behalf an agent carries
on the business of supply or receipt of goods or services or both;
(89) “principal place of business” means the place of business
specified as the principal place of business in the certificate of
registration;
(90) “principal supply” means the supply of goods or services
which constitutes the predominant element of a composite supply and to
which any other supply forming part of that composite supply is ancillary;
(91) “proper officer” in relation to any function to be performed
under this Act, means the Commissioner or the of ficer of the S tate tax
who is assigned that function by the Commissioner;
(92) “quarter” shall mean a period comprising three consecutive
calendar months, ending on the last day of March, June, September and
December of a calendar year;
(93) “recipient” of supply of goods or services or both, means,—
(a) where a consideration is payable for the supply of goods
or services or both, the person who is liable to pay that consideration;
(b) where no consideration is payable for the supply of
goods, the person to whom the goods are delivered or made available, or
to whom possession or use of the goods is given or made available; and
(c) where no consideration is payable for the supply of a
service, the person to whom the service is rendered,
and any reference to a person to whom a supply is made shall be
construed as a reference to the recipient of the supply and shall include
an agent acting as such on behalf of the recipient in relation to  the goods
or services or both supplied;
17
(94) “registered person” means a person who is registered under
section 25 but does not include a person having a Unique Identity
Number.
(95) “regulations” means the regulations made by the Government
under this Act on the recommendations of the Council;
(96) “removal’’ in relation to goods, means,—
(a) despatch of the goods for delivery by the supplier thereof
or by any other person acting on behalf of such supplier; or
(b) collection of the goods by the recipient thereof or by any
other person acting on behalf of such recipient;
(97) “return” means any return prescribed or otherwise required to
be furnished by or under this Act or the rules made thereunder;
(98) “reverse char ge’’ means the liability to pay tax by the
recipient of supply of goods or services or both instead of the supplier of
such goods or services or both under sub-section (3)  or sub-section (4) of
section 9, or under sub-section (3) or sub-section (4) of section 5 of the
Integrated Goods and Services Tax Act, 2017 (Central Act 13 of 2017);
(99) “Revisional Authority” means an authority appointed or
authorised for revision of decision or orders as referred to in section 108;
(100) “Schedule” means a Schedule appended to this Act;
(101) “securities” shall have the same meaning as assigned to it in
clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956
(Central Act 42 of 1956);
(102) “services” means anything other than goods, money and
securities but includes activities relating to the use of money or its
conversion by cash or by any other mode, from one form, currency or
denomination, to another form, currency or denomination for which a
separate consideration is charged;
(103) “State” means the State of Kerala;
 33/3241/2017/S-15.
18
(104) “State tax” means the tax levied under this Act;
(105) “supplier” in relation to any goods or services or both, shall
mean the person supplying the said goods or services or both and shall
include an agent acting as such on behalf of such supplier in relation to
the goods or services or both supplied;
(106) “tax period’ ’ means the period for which the return is
required to be furnished;
(107) “taxable person” means a person who is registered or liable
to be registered under section 22 or section 24;
(108) “taxable supply’ ’ means a supply of goods or services or
both which is leviable to tax under this Act;
(109) “taxable territory’ ’ means the territory to which the
provisions of this Act apply;
(110) “telecommunication service” means service of any
description (including electronic mail, voice mail, data services, audio text
services, video text services, radio paging and cellular mobile telephone
services) which is made available to users by means of any transmission
or reception of signs, signals, writing, images and sounds or intelligence of
any nature, by wire, radio, visual or other electromagnetic means;
(111) “the Central Goods and Services Tax Act” means the
Central Goods and Services Tax Act, 2017 (Central Act 12 of 2017);
(112) “turnover in S tate” or “turnover in Union Territory” means
the aggregate value of all taxable supplies (excluding the value of inward
supplies on which tax is payable by a person on reverse charge basis)
and exempt supplies made within a S tate or Union Territory by a taxable
person, exports of goods or services or both and inter-State supplies of
goods or services or both made from the S tate or Union Territory by the
said taxable person but excludes Central tax, S tate tax, Union Territory
tax, integrated tax and cess;
(113)  “usual place of residence” means,––
(a) in case of an individual, the place where he ordinarily
resides;
19
(b) in other cases, the place where the person is incorporated or
otherwise legally constituted;
(114)  “Union Territory” means the territory of,—
(a) the Andaman and Nicobar Islands;
(b) Lakshadweep;
(c) Dadra and Nagar Haveli;
(d) Daman and Diu;
(e) Chandigarh; and
(f) other territory;
Explanation: —For the purposes of this Act, each of the territories
specified in sub-clauses (a) to (f) shall be considered to be a separate
Union Territory.
(115)  “Union Territory tax” means the Union Territory goods and
services tax levied under the Union Territory Goods and Services Tax Act,
2017 (Central Act 14 of 2017);
(116)  “Union Territory Goods and Services Tax Act” means the
Union Territory Goods and Services Tax Act, 2017 (Central Act 14 of
2017);
(117) “valid return” means a return furnished under sub-section (1)
of section 39 on which self-assessed tax has been paid in full;
(118)  “voucher” means an instrument where there is an obligation
to accept it as consideration or part consideration for a supply of goods
or services or both and where the goods or services or both to be
supplied or the identities of their potential suppliers are either indicated on
the instrument itself or in related documentation, including the terms and
conditions of use of such instrument;
(119) “works contract” means a contract for building, construction,
fabrication, completion, erection, installation, fitting out, improvement,
modification, repair, maintenance, renovation, alteration or commissioning of
any immovable property wherein transfer of property in goods (whether as
goods or in some other form) is involved in the execution of such
contract;
20
(120) words and expressions used and not defined in this Act
but defined in the Central Goods and Services Tax Act, 2017 (Central
Act 12 of 2017), the Integrated Goods and Services Tax Act, 2017
(Central Act 13 of 2017), the Union Territory Goods and Services Tax
Act, 2017 (Central Act 14 of 2017) and the Goods and Services Tax
(Compensation to S tates) Act, 2017 (Central Act 15 of 2017) shall have
the same meanings as assigned to them in those Acts.
CHAPTER II
ADMINISTRATION
3. Officers under this Act. —The Government shall, by notification ,
appoint the following classes of of ficers for the purposes of this Act,
namely:—
(a) Commissioner of State tax or Principal Commissioner or
Chief Commissioner of State tax;
(b) Special Commissioners of State tax;
(c) Additional Commissioners of State tax;
(d) Joint Commissioners of State tax;
(e) Deputy Commissioners of State tax;
(f) Assistant Commissioners of State tax; and
(g) any other class of officers as it may deem fit:
Provided that, the of ficers appointed under the Kerala Value Added
Tax Act, 2003 (30 of 2004) and the Kerala General Sales Tax Act, 1963
(15 of 1963)  shall be deemed to be the officers appointed under the
provisions of this Act.
4. Appointment of officers. —(1) The Government may , in addition
to the officers as may be notified under section 3, appoint such persons
as it may think fit to be the of ficers under this Act.
(2) The Commissioner shall have jurisdiction over the whole of
the S tate, the Special Commissioner and an Additional Commissioner in
respect of all or any of the functions assigned to them, shall have
jurisdiction over the whole of the State or where the State Government so
directs, over any local area thereof, and all other officers shall, subject to
such conditions as may be specified, have jurisdiction over the whole of
the S tate or over such local areas as the Commissioner may , by order ,
specify.
21
5. Powers of officers.—(1) Subject to such conditions and limitations
as the Commissioner may impose, an officer of State  tax may exercise
the powers and discharge the duties conferred or imposed on him under
this Act.
(2) An officer of State tax may exercise the powers and
dischar ge the duties conferred or imposed under this Act on any
other officer of State tax who is subordinate to him.
(3) The Commissioner may , subject to such conditions and
limitations as may be specified in this behalf by him, delegate his powers
to any other officer who is subordinate to him.
(4) Notwithstanding anything contained in this section, an
Appellate Authority shall not exercise the powers and dischar ge the duties
conferred or imposed on any other officer of State tax.
6. Authorisation of officers of central tax as pr oper officer in
certain circumstances.—(1) Without prejudice to the provisions of this Act,
the officers appointed under the Central Goods and Services Tax Act, 2017
(Cenrtal Act 12 of 2017) are authorised to be the proper of ficers for the
purposes of this Act, subject to such conditions as the Government shall,
on the recommendations of the Council, by notification, specify .
(2) Subject to the conditions specified in the notification issued
under sub-section (1),—
(a) where any proper of ficer issues an order under this Act,
he shall also issue an order under the Central Goods and Services Tax
Act, 2017 (Central Act 12 of 2017) as authorised by the said Act under
intimation to the jurisdictional officer of Central tax;
(b) where a proper officer u nder the Central Goods and
Services Tax Act, 2017 (Central Act 12 of 2017) has initiated any
proceedings on a subject matter , no proceedings shall be initiated by the
proper of ficer under this Act on the same subject matter .
22
(3) Any proceedings for rectification, appeal and revision,
wherever applicable, of any order passed by an officer appointed under
this Act, shall not lie before an of ficer appointed under the Central Goods
and Services Tax Act, 2017 (Central Act 12 of 2017).
CHAPTER III
LEVY AND COLLECTION OF TAX
7. Scope of supply .— (1) For the purposes of this Act, the expression
“supply” includes,—
(a) all forms of supply of goods or services or both such as
sale, transfer , barter, exchange, license, rental, lease or disposal made or
agreed to be made for a consideration by a person in the course or
furtherance of business;
(b) import of services for a consideration whether or not in
the course or furtherance of business;
(c) the activities specified in Schedule I, made or agreed to
be made without a consideration; and
(d) the activities to be treated as supply of goods or supply of
services as referred to in Schedule II.
(2) Notwithstanding anything contained in sub-section (1),––
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the Central
Government, a State Government or any local authority in which they are
engaged as public authorities, as may be notified by the Government on
the recommendations of the Council, shall be treated neither as a supply
of goods nor a supply of services.
(3) Subject to the provisions of sub-sections (1) and (2), the
Government may , on the recommendations of the Council, specify , by
notification, the transactions that are to be treated as,—
(a) a supply of goods and not as a supply of services; or
23
(b) a supply of services and not as a supply of goods.
8. Tax liability on composite and mixed supplies .—The tax liability
on a composite or a mixed supply shall be determined in the following
manner, namely: —
(a) a composite supply comprising two or more supplies, one of
which is a principal supply , shall be treated as a supply of such principal
supply; and
(b) a mixed supply comprising two or more supplies shall be
treated as a supply of that particular supply which attracts the highest
rate of tax.
9. Levy and collection .— (1) Subject to the provisions of sub-section (2),
there shall be levied a tax called the Kerala State Goods and Services Tax
on all intra-State supplies of goods or services or both, except on the
supply of alcoholic liquor for human consumption, on the value determined
under section 15 and at such rates, not exceeding twenty per cent, as may
be notified by the Government on the recommendations of the Council
and collected in such manner as may be prescribed and shall be paid by
the taxable person.
(2) The State tax on the supply of petroleum crude, high speed
diesel, motor spirit (commonly known as petrol), natural gas and aviation
turbine fuel, shall be levied with effect from such date as may be notified
by the Government on the recommendations of the Council.
(3) The Government may, on the recommendations of the Council,
by notification, specify categories of supply of goods or services or both,
the tax on which shall be paid on reverse charge basis by the recipient
of such goods or services or both and all the provisions of this Act shall
apply to such recipient as if he is the person liable for paying the tax in
relation to the supply of such goods or services or both.
(4) The State tax in respect of the supply of taxable goods or
services or both by a supplier , who is not registered, to a registered
person shall be paid by such person on reverse charge basis as the
recipient and all the provisions of this Act shall apply to such recipient as
if he is the person liable for paying the tax in relation to the supply of
such goods or services or both.
24
(5) The Government may, on the recommendations of the Council,
by notification, specify categories of services the tax on intra-State
supplies of which shall be paid by the electronic commerce operator if
such services are supplied through it, and all the provisions of this Act
shall apply to such electronic commerce operator as if he is the supplier
liable for paying the tax in relation to the supply of such services:
Provided that where an electronic commerce operator does not have
a physical presence in the taxable territory , any person representing such
electronic commerce operator for any purpose in the taxable territory shall
be liable to pay tax:
Provided further that where an electronic commerce operator does
not have a physical presence in the taxable territory and also he does not
have a representative in the said territory , such electronic commerce
operator shall appoint a person in the taxable territory for the purpose of
paying tax and such person shall be liable to pay tax.
10. Composition levy.—(1) Notwithstanding anything to the contrary
contained in this Act but subject to the provisions of sub-sections (3) and
(4) of section 9, a registered person, whose aggregate turnover in the
preceding financial year did not exceed seventy five lakh rupees may opt
to pay, in lieu of the tax payable by him, an amount calculated at such
rate as may be prescribed, but not exceeding,—
(a) one per cent of the turnover in State in case of a
manufacturer,
(b) two and a half per cent  of the turnover in State in case
of persons engaged in making supplies referred to in clause (b) of
paragraph 6 of Schedule II, and
(c) half per cent of the turnover in State in case of other
suppliers, subject to such conditions and restrictions as may be prescribed:
Provided that the Government may , by notification, increase the
said limit of seventy five lakh rupees to such higher amount, not exceeding
one crore rupees, as may be recommended by the Council.
25
(2) The registered person shall be eligible to opt under
sub-section (1), if,—
(a) he is not engaged in the supply of services other than
supplies referred to in clause (b) of paragraph 6 of Schedule II;
(b) he is not engaged in making any supply of goods which
are not leviable to tax under this Act;
(c) he is not engaged in making any inter-State outward
supplies of goods;
(d) he is not engaged in making any supply of goods through
an electronic commerce operator who is required to collect tax at source
under section 52; and
(e) he is not a manufacturer of such goods as may be
notified by the Government on the recommendations of the Council:
Provided that where more than one registered person are having the
same Permanent Account Number issued under the Income-tax Act, 1961
(Central Act 43 of 1961) the registered person shall not be eligible to opt
for the scheme under sub-section (1) unless all such registered persons
opt to pay tax under that sub-section.
(3) The option availed of by a registered person under sub-section (1)
shall lapse with effect from the day on which his aggregate turnover
during a financial year exceeds the limit specified under sub-section (1).
(4) A taxable person to whom the provisions of sub-section (1)
apply shall not collect any tax from the recipient on supplies made by him
nor shall he be entitled to any credit of input tax.
(5) If the proper officer has reasons to believe that a taxable
person has paid tax under sub-section (1) despite not being eligible, such
person shall, in addition to any tax that may be payable by him under any
other provisions of this Act, be liable to a penalty and the provisions of
section 73 or section 74 shall, mutatis mutandis, apply for determination
of tax and penalty .
 33/3241/2017/S-15.
26
11. Power to grant exemption fr om tax. —(1) Where the Government
is satisfied that it is necessary in the public interest so to do, it may , on
the recommendations of the Council, by notification, exempt generally ,
either absolutely or subject to such conditions as may be specified therein,
goods or services or both of any specified description from the whole or
any part of the tax leviable thereon with effect from such date as may be
specified in such notification.
(2)  Where the Government is satisfied that it is necessary in the
public interest so to do, it may , on the recommendations of the Council, by
special order in each case, under circumstances of an exceptional nature
to be stated in such order
, exempt from payment of tax any goods or
services or both on which tax is leviable.
(3)  The Government may, if it considers necessary or expedient so
to do for the purpose of clarifying the scope or applicability of any
notification issued under sub-section (1) or order issued under sub-section (2),
insert an explanation in such notification or order , as the case may be, by
notification at any time within one year of issue of the notification unde r
sub-section (1) or order under sub-section (2), and every such explanation
shall have effect as if it had always been the part of the first such
notification or order , as the case may be.
(4) Any notification issued by the Central Government, on the
recommendations of the Council, under sub-section (1) of section 1 1 or
order issued under sub-section (2) of the said section of the Central
Goods and Services Tax Act,  2017 (Central Act 12 of 2017) shall be
deemed to be a not

Excerpt shown. Open the full act in Lexace.

‹ Prev All Kerala acts Next ›