Kerala GST Dept Holds Seminar on Amnesty Scheme

THIRUVANANTHAPURAM:
Finance Minister K. N. Balagopal said that the Amnesty scheme is a rare opportunity for traders in Kerala as they can utilise the scheme for one-time settlement of their tax arrears.

Balagopal was addressing a seminar on the Amnesty Scheme announced in the state budget for 2025-26 and the welfare schemes for traders here.

The seminar was organised by Kerala Goods and Services Tax Department, in association with the Traders Welfare Board.

Finance Minister reminded the traders that the Government had offered various incentives for them to settle the tax arrears with attractive concessions and that the last date for clearing the dues under the Amnesty Scheme is June 30.

K R Jyothilal, Additional Chief Secretary, Taxes,presided over the function and Shri. Ajit Patil, IAS, Commissioner, State GST Department, welcomed the gathering.

The minister said that after the introduction of GST, the entire country got the same tax structure and as part of this, systems, laws, and software were brought in for the taxes to be paid promptly. The minister said the government considered the traders as an important component of the state and country who contribute substantially to the revenue.

He also revealed that Kerala had requested the GST Council to take a strong stand on online trading.

Balagopal said that after the implementation of Amnesty scheme in 2024, all arrears below Rs 50,000 were waived off, which was a great relief to small traders.

Noting that government institutions were providing financial aid to the trade sector, Balagopal said through Kerala State Financial Enterprises (KSFE) alone, various incentives worth Rs 475 crore were given to traders last year.

Holding that the government would provide all supports to the growth of the trading sector, Shri. Balagopal reminded thetraders to be prepared to face the challenges in case there was a tariff war.

The Minister also interacted with the stakeholders from the trading sector who attended the seminar and replied to their queries regarding various schemes.

In his address, Jyothilal said that taxpayers contributed significantly to the development of the nation and the Amnesty schemes provided good opportunities for them to settle arrears.

Urging the participants to make use of the opportunity, Jyothilal said the government wanted to work with taxpayers and reduce their burden.

Abraham Renn S, Special Commissioner, State GST Department, briefed the participants on the salient features of the schemes. R Sreelakshmi, Additional Commissioner, SGST Department, also spoke.

Raju Apsara, Vice Chairman, Traders Welfare Board and state president of Kerala Vyapari Vyavasayi Ekopana Samiti (KVVES); E. S. Biju, Vice Chairman, Traders Welfare Board and state general secretary Kerala Vyapari Vyavasayi Samiti (KVVS), and Vineeth Krishna U, CEO, Traders Welfare Board, also attended.

The budget, presented by K.N. Balagopal in the State Assembly in February 2025, had announced four categories of Amnesty – General Amnesty, Flood Cess Amnesty, Bar Hotel Amnesty and Distillery Arrears Settlement scheme.

The General Amnesty scheme was envisaged as a comprehensive measure for enabling businesses to settle the arrears relating to various tax laws that existed before the implementation of the SGST Act.

The Amnesty schemes that came into effect on April 1, 2025 has imparted an impetus to the trade sector in the state. The deadline for the schemes, which offered attractive concessions, would expire on June 30.

The SGST Department had also set up help desks to clear the queries regarding Amnesty Scheme 2025 and various welfare schemes being implemented for the trade sector as part of the Seminar.

The General Amnesty scheme provided an opportunity for settling arrears dating back to the period of previous tax laws like Kerala Value Added Tax Act, Kerala General Sales Tax Act, the Kerala Surcharge on Taxes Act, Kerala Agricultural Income Tax Act, Kerala Tax on Luxuries Tax Act and Central Sales tax Act.

The beneficiaries availing the General Amnesty schemes are entitled to certain percentage of deduction on tax arrears, besides getting complete waiver of the penal charges and interest. The scheme operates under three slabs based on the quantum of arrears.

The arrears can be paid through the e-treasury portal www.treasury.kerala.gov.in and the details of the payment, including the challan, along with online application shall be submitted through the SGST department’s website www.keralataxes.gov.in on or before June 30, 2025.

Arrears of Flood Cess for the period from August 2019 to July 2021 are also eligible for waiver of interest and penalty if arrears are settled under the Amnesty Scheme and payment details are informed to the assessing authority.

Bar hotels are also eligible for a waiver of penalty and 50% of the interest on turnover tax arrears for the period from 2005-06 to 2020-21, provided they pay the full amount of turnover tax, cess, and 50% of the interest through the e-Treasury portal and submit the payment details to the assessing authority.