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Kerala Commercial Tax

The Commercial Taxes Department forms one of the main revenue sources for the Kerala government, making up for 3/4th of its revenues. Through its 431 offices, the department caters to 1,83,000 traders across the state. The main functions of the department like tax payment, filing of returns, issue of statutory forms and declaration of consignments, among others, have been completely automated. According to the government of Kerala website, the department’s mission is “to ensure voluntary tax compliance through transparent and simplified procedures; to eliminate corrupt practices and embracing relevant technology for seamless accessibility to services and thereby ensuring trader participation in tax administration.”

The Kerala Commercial Taxes Department include:

1 State Headquarter
221 Assessment Circles
15 Districts Headquarters
74 Check posts
16 Investigation Wings
75 Enforcement Squads
Appellate Tribunal
Total 4615 Employees

The Acts administered by the Department include:

Kerala Value Added Tax Act
Kerala General Sales Tax Act
Kerala Tax on Paper Lotteries Act
Kerala Surcharge on Taxes Act
Kerala Agricultural Income Tax Act
Kerala Money Lenders Act
Kerala Tax on Luxuries Act
Central sales Tax Act

Kerala Commercial Tax Rate

The GST tax rate for some of the goods and services have been listed below:

Goods and services at nil rate are:

Curd; Lassi; Butter milk
Potatoes, fresh or chilled.
Cucumbers and gherkins, fresh or chilled.
Coconuts, fresh or dried, whether or not shelled or peeled
Apples, pears and quinces, fresh.
Live asses, mules and hinnies
Live bovine animals
Meat of swine, fresh, chilled or frozen [other than frozen and put up in unit container]
Services by a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution.

Goods at 0.25% rate are:

Diamonds, non-industrial unworked or simply sawn, cleaved or bruted
Precious stones (other than diamonds) and semi-precious stones, unworked or simply sawn or roughly shaped
Synthetic or reconstructed precious or semi-precious stones, unworked or simply sawn or roughly shaped

Goods at 3% rate are:

Imitation jewellery
Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal
Dust and powder of natural or synthetic precious or semi-precious stones
Pearls, natural or cultured, whether or not worked or graded but not strung, mounted or set; pearls, natural or cultured, temporarily strung for convenience of transport

Goods and services at 5% rate are:

Milk and cream, concentrated or containing added sugar or other sweetening matter, including skimmed milk powder, milk food for babies [other than condensed milk]
Fish, dried, salted or in brine
Edible products of animal origin, not elsewhere specified or included
Natural honey, put up in unit container and bearing a registered brand name
Transport of passengers by rail in first class or air-conditioned coaches
Transport of passengers by air in economy class

Goods and services at 12% rate are:

Cheese
Fruit and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter
Dates, figs, pineapples and avocados
Vegetables, nuts, fruits and other edible parts of plants, prepared or preserved by acetic acid or vinegar
Yeasts and prepared baking powders
Transport of passengers by air in other than economy class
Services provided by foreman of chit fund in relation to chit

Goods and services at 18% rate are:

Condensed milk
Malt, whether or not roasted
Glycerol, crude; glycerol waters and glycerol lyes
Supply of Food/drinks in outdoor catering
Supply of Food/drinks in restaurant having licence to serve liquor
Services by way of admission to exhibition of cinematograph films where price of admission ticket is one hundred rupees or less.

Goods and services at 28% rate are:

Molasses
Cocoa butter, fat and oil
Chocolates and other food preparations containing cocoa
Gambling
Services provided by a race club by way of totalisator or a license to bookmaker in such club

The tax rates have been sourced from keralataxes.gov.in/2017/08/09/rate-of-gst-on-goods/ and keralataxes.gov.in/2017/08/09/rate-of-gst-on-services/

E-Registration Process for Kerala Commercial Tax

Individuals who wish to e-register are required to follow the below steps:

Go to the official website of the Kerala Commercial Taxes Department.
Click on the e-Registration option you see below
Enter District, Application Type, Office Name, List of Value, Constitution of Business, Business PAN, Login Name and Password
Click on “Save Changes” once you are done.

Forms Required

Some of the forms relating to VAT are:
- 1 Application Form For Online Registration
- 1a - Certificate Of Registration
- 1af - Format Of Affidavit To Be Filed By Multi-Level Marketing Entities For Registration
- 1b - Online Application For Salesman Permit / Exhibition Or Exchange Mela / Compounding / Liability Certificate / Registration Renewal
- 1c - Salesman Permit
- 1d - Permission For Conducting Exhibition / Exchange Mela
- 1e - Permission To Pay Tax Under Compounding Scheme Category – Works Contract / Gold / Cooked Food / Bar Hotels - Cooked Food / Bar Hotel Liquor / Metal Crushers / Cd Libraries / Medicine
- 1ee - Liability Certificate
- 1f - Application For Permission To Collect & Pay Tax For Whose Total Turnover Is Below The Limit
- 2 - Form Of Declaration To Be Filed By Partners
- 2a - Form For Furnishing Details Of Authorised Signatures
- 3 - Form Of Declaration To Be Filed By Retiring Partner
- 5b - De-Registration
- 6 - Security Bond
- 6a - Security Bond For Stay Of Collection Of Tax, Fee Etc
- 6b - Indemnity Bond
- 6c - Bank Guarantee
- 6d - Notice For Demanding Security For Registration
- 7a - Salesman Permit
- 7aa - Authorisation For Travelling Salesman
- 7b - Transit Pass
- 7c - Permit For Transport Of Notified Goods
- 8 - Tax Invoice To Vat Dealers
- 8b - Retail Invoice For Customers
- 8c - Invoice For Works Contract
- 8ca - Invoice For Works Contract [For Compounded Category]
- 8d - Sale Bill For Presumptive Tax Payers
- 8e - Purchase Bill
- 8f - Declaration
- 8fa - Declaration Of Goods Brought Through Coastal Cargo/ Railways / Airports

Some of the forms relating to KGST are:
- 1 - Application For Registration
- 1a - Form Of Application For Provisional Registration
- 1b - Form Of Application For Renewal Of Registration
- 2 - Declaration Of Partnership Shares
- 4 - Certificate Of Registration
- 4a - Certificate Of Provisional Registration
- 6 - Security Bond
- 6a - Form Of Application For The Grant/Renewal Of Permit
- 7 - Permit Granted To A Registered Dealer
- 8a - Return Showing Amount Of Price Variation Received
- 9 - Return Of Monthly/Quarterly/Half-Yearly/Annual Turnover
- 10 - Acknowledgment For Receipt Of Return
- 11 - Defect Notice
- 12 - Return Of Turnover By A Casual Trader
- 13 - Notice Of Demand
- 14 - Notice Of Provisional Annual Demand
- 14a - The Estimate Of Turnover Under Section 18 (3a) For The Principal Place Of Business/Branch
- 17 - Refund Adjustment Order
- 18 - Authorisation (For Audit Visit Under Section 18)
- 18a - Notice [ For Audit Visit Under Section 18]
- 19 - Certificate Of Audit
- 20 - Statement Of Claim For Refund Of Tax Paid On Sales Or Purchases Of Declared Goods
- 21 - Application For Permission To Pay Tax Under Section 7
- 21a - Premising For Payment Of Tax Under Ss.7(1)(A), 7(1)(B), 7(7 A)
- 21cc - Admitted Tax Declaration
- 22 - Permission For Payment Of Tax Under Section 7
- 23 - Notice Of Final Assessment And Demand For Payment Of Tax Under Section 7
- 24 - Notice Of Demand Of Penalty/Interest Under Section 23(3)/28(8)/45a/45aa/46a
- 24c - Form Of Warrant To Be Issued By The Magistrate To Recover Sales Tax And Other Amounts Due Under Section 23(2) (B)
- 25 - Form Of Declaration To Be Furnished By A Purchasing Dealer When Goods Taxable At The Point Of Last Purchase In The State Are Purchased By Him

Some of the forms relating to CST are:
- I - Goods Covered By The Certificate Of Registration
- IA - Register Showing Sale & Declaration Forms
- II - Form Of Return
- III - Notice For Provisional Assessment
- IV - Notice Of Final Annual Assessment
- V - Notice Of Final Assessment & Refund Order
- VI - Notice Of Final Assessment & Refund Order
- VII - Declaration Appointing Manager
- VIII - Declaration Appointing Manager
Some of the forms relating to KML are:
- A - Application For Moneylender's Licence.
- AA - Renewal Application For Moneylender's Licence.
- AAA - Declaration For Proof Of Payment Of Fee
- AAAA - Form Of Security Bond
- B - Form Of Licence.
- C - Application For Transfer Of Licence
- D - Declaration To Be Filed By The Transferee.
- E - Form Of Register Showing The Account Of Each Debtor.
- F - Form Of Receipt To Be Given For Payments Made By Debtor.
- G - Form Of Statement Of Accounts.
- H - Form Of Pawn Ticket.
- I - Form Of Sale Book Of Pledgers.
- J - Declaration For Claim Of Pledge By Owner
- K - Declaration For The Loss Of Pawn Ticket.
- L - Receipt For The Redemption Of Pledge
- M - Form Of Pledge Book.
- N - Certificate To Be Filed Along With Accounts By Money Lender / Agent.
- O - Certificate To Be Filed Along With Accounts By A Person Other Than A Money Lender.
- P - Form Of Summons.
- Q - Authorisation For Search.
- R - Notice For Demanding Penalty
- RA - Notice For Forfeiting Excess Collection Of Interest.
- RB - Form Of Application FOR REFUND.
- RC - Refund Payment Order.
- S - Form Of Appeal.
- T - Revision Application Form
- Some of the forms relating to LT are:
- 1 - Form Of Luxury Tax Return
- 1AAA - Return For A Club
- 1B - Application For Registration
- II - Notice Of Assessment & Demand Notice
- IIA - Notice Of Demand Of Penalty
- IIAA - Notice Of Demand Of Interest
- IIB - Form Of Authorisation For Search
- IIC - Form Of Authorisation For A Practitioner
- III - Form Of Appeal
- IIIA - Form Of Appeal To Tribunal
- IIIB - Form Of Application For Impleading
- IIIC - Form Of Application For Setting Aside Abatement
- IV - Form Of Revision Application
- IVA - Form Of Interlocutory Application
Some of the forms relating to CST (R&T) are
- A - Registration Application
- B - Registration Certificate
- C - Interstate Purchase- Concessional Rate
- D - Interstate Purchase- Government
- E-I - Transfer Of Documents Of Title
- E-II - Transfer Of Documents Of Title
- F - Declaration For Stock Transfer
- G - Form Of Indemnity Bond
- I - Certificate For Sales To SEZ
- J - Certificate For Claiming Exemption To Diplomatic Persons

The above-listed information has been sourced from - old.keralataxes.gov.in/forms.aspx

Kerala Commercial Tax Return e-Filing and Payment

Kerala is the first state in the country to put into effect 100% e-filing of VAT returns as well as e-Payment of tax to all registered dealers.
e-filing of returns started on 1 January 2009, while e-payment commenced on 1 September 2009
e-filing of returns is compulsory for all registered dealers.
This facility has been availed by 1.83 lakhs registered dealers.
Integrated CST, VAT & KGST returns.
System generated annual return.
There is the facility to open zero-balance account.
The trader can remit advance tax, tax due as per the periodic return and fee for renewal of registration.

Payment Heads

CST ACT

Tax Collections	0040-00-101-99
Surcharge	0040-00-101-98
Licence and Registration Fees	0040-00-101-97
Other Receipts	0040-00-101-96

KGST ACT

Tax Collections	0040-00-102-99
Surcharge	0040-00-102-98
Licence and Registration Fees	0040-00-102-97
Other Receipts	0040-00-102-95

Kerala VAT ACT

Value Added Tax (VAT)	0040-00-111-99
Licence and Registration Fees under Value Added Tax	0040-00-111-98
Other Receipts	0040-00-111-97

Kerala Tax on Paper Lotteries ACT

Tax on Paper Lotteries

0040-00-800-99

Kerala Tax on Luxuries ACT

Tax Collections	0045-00-105-99
Other Receipts	0045-00-105-98

Kerala Money Lenders ACT

Administration of Money Lenders Act, 1958	1475-00-200-98
Other Items	1475-00-200-96

Kerala Agrl. Income Tax ACT

Tax Collection-99-Gross Receipts	0022-00-101
Surcharge-99-Gross Receipts	0022-00-103
Other Receipts-99-Gross Receipts	0022-00-800

Frequently Asked Questions

To claim input tax credit, what kind of evidence needs to be furnished?

For claiming input tax credit, the dealer has to have a registered VAT dealer issued tax invoice that shows the tax collection separately. The tax invoice needs to also mention the TIN of the buying dealer.

Under what circumstances are refund of input tax credit allowed?

Refund of input tax is permissible where the goods bought are-

Exported or sold interstate
Used to pack materials of goods that are exported or sold interstate
Used for manufacturing of goods. The manufactured goods are then exported or sold interstate.
Used as capital goods with regards to goods exported or sold interstate.
Sent as stock transfer out of the state or the good manufactured or packed with the use the goods bought are sent out of the state as stock transfer (here, tax paid in excess of 4% is eligible for refund)

What is the helpline number(s) of the Kerala Commercial Taxes Department?

To get in touch with the Kerala Commercial Taxes Department, dial 1800 4254777 (toll free number) or 9446505527.

If one trades at 0% GST, will it be necessary to register for GST when the turnover crosses Rs. 20 lakhs?

An individual who deals with 100% exempted supply does not have to register, regardless of what the turnover is.

In GST, is there a concept of area-based exemption?

No. You will not find area-based exemptions under GST.