The Government of Kerala, Taxes (B) Department issued Notification vide G.O.(P) No.174/2024/TD dated December 12, 2024, amending a prior notification to specify rates for settling tax arrears and short-paid amounts under the Kerala Finance Act, 2024. Different rates apply based on payment timing and amount, with lower rates for early payments and higher rates for delays. Applicable periods range from August to December 2024, and all settlements must be completed by March 31, 2025. The notification is effective from September 30, 2024.
Scope and Purpose:
- The notification is issued under the Kerala Finance Act, 2024, exercising powers in Sections 9, 10, and 11.
- It amends the previous notification (G.O.(P) No. 124/2024/TD dated 28th September 2024), detailing updated payment rates for tax arrears and short-paid amounts based on the timing of payment.
Settlement of Arrears:
- Taxpayers can settle arrears of tax or surcharge from specific periods (e.g., 1st August 2024 to 31st December 2024) at different rates, which vary by the amount and timing of payment.
- Tables I-IV outline specific rates based on the period during which the application is made and the payment is completed.
Differential Rates Based on Payment Timelines:
- Payments made earlier have lower rates; delayed payments within 60, 120, 180 days, and up to 31st March 2025 incur progressively higher rates.
- Different rates apply for amounts ranging from ₹50,000 to over ₹1 crore and for admitted versus disputed taxes.
Deadline for Payments:
- The final date for settling arrears or short-paid amounts under this notification is 31st March 2025. Payments beyond this date are not eligible under the specified terms.
Effective Date and Objective:
- The notification is effective retrospectively from 30th September 2024.
- It aims to clarify and streamline the rates and procedures for tax settlements, ensuring compliance and effective tax recovery in public interest.
The Notification can be accessed at: https://a2z-bucket.s3.amazonaws.com/Kerala_GST_NOTIFICATION.pdf