Kerala GST Dept. Issues Notification on Settlement of Tax Arrears Under Kerala Finance Act, 2024
The Kerala Government, through the Taxes (B) Department, issued Notification G.O.(P) No.174/2024/TD on December 12, 2024. This notification amends the earlier one (G.O.(P) No.124/2024/TD dated September 28, 2024). It specifies updated rates for settling tax arrears and short-paid amounts under the Kerala Finance Act, 2024.
1. Purpose and Scope
The notification falls under Sections 9, 10, and 11 of the Kerala Finance Act, 2024. It introduces revised settlement rates based on:
- Payment timelines.
- The amount of tax arrears.
The changes aim to simplify settlements and encourage timely tax payments.
2. Settlement Period and Rates
Taxpayers can settle arrears or surcharges from August 1, 2024, to December 31, 2024. The notification provides rates based on when the application is submitted and payment is completed.
- Tables I-IV detail specific rates for taxpayers.
- Rates vary depending on whether the tax amount is admitted or disputed.
3. Early vs. Delayed Payments
The settlement rates are designed to reward early payments while discouraging delays.
- Lower rates apply to early payments.
- Higher rates apply for delays of 60, 120, and 180 days, with payments allowed until March 31, 2025.
The applicable tax amounts range from ₹50,000 to over ₹1 crore.
4. Payment Deadline
The final date to settle arrears under this notification is March 31, 2025. Payments made after this date will no longer qualify for the specified settlement terms.
5. Effective Date and Objective
The notification takes effect retrospectively from September 30, 2024.
Its main objectives are:
- Streamlining tax settlement procedures.
- Improving compliance.
- Ensuring efficient tax recovery for public interest.
Conclusion
This notification provides taxpayers with a clear opportunity to settle pending tax dues at favorable rates. By offering differentiated rates, it encourages timely payments while simplifying compliance procedures.
