The Government of Kerala on June 27, 2026, issued the Kerala Finance (No.3) Bill, 2026 to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2026-2027.
The following amendments have been stated:
• In the Kerala Stamp Act, 1959 (17 of 1959), in section 45B, after sub-section (6), the following sub-sections shall be added, namely:-
“(7) Where the person liable to pay the deficient amount of duty determined under this section fails to pay the amount within sixty days from the date of the final order passed by the Collector under sub-section (2) or sub-section (3) or by the Appellate Authority under sub-section (6), as the case may be, he shall be liable to pay interest on the deficient amount of duty at the rate of one per cent per month from the date immediately following the expiry of the said period until the date of payment.
(8) Any deficient amount of duty determined under this section by the Collector or by the Appellate Authority, as the case may be, remaining unpaid within the period specified in sub-section (7) shall constitute a charge on the property to which the instrument relates and such charge shall continue until the liability towards the deficient amount of duty with interest, if any, is discharged. The procedure for fixing charge on the property shall be in such manner as may be prescribed.”.
• In the Kerala General Sales Tax Act, 1963 (15 of 1963),-
(1) in section 5, in sub-section (1), in the explanation, in clause (b), after the words and symbol “Horti-wine,”, the words and symbol “low alcoholic beverage,” shall be inserted;
(2) in the schedule, in serial number 2,-
(i) after item (iv), the following item shall be inserted, namely:-
“(iva) Low Alcoholic Beverage,- (a) having strength of alcohol between 0.5% v/v to 10% v/v 120 (b) having strength of alcohol between 10% v/v to 20% v/v 175”;
(ii) in item (v), for the word, letters and bracket “and (iv)”, the symbol, letter, word and brackets “, (iv) and (iva)” shall be substituted;
(iii) after the explanation (ia), the following shall be inserted, namely:-
“(ib) “Low Alcoholic Beverage” shall have the same meaning as assigned to it in the explanation to rule 3A of the Foreign Liquor Rules, 1953.”.
In the Kerala State Goods and Services Tax Act, 2017 (20 of 2017),-
(1) in section 15, in sub-section (3), for clause (b), the following clause shall be substituted, namely:-
“(b) after the supply has been effected, if for such discount, a credit note has been issued by the supplier and input tax credit as is attributable to such discount has been reversed by the recipient of the supply, in accordance with the provisions of section 34.”;
(2) in section 34, in sub-section (1), after the words “both supplied are found to be deficient”, the words, brackets, letter and figures “or where a discount referred to in clause (b) of sub-section (3) of section 15 is given” shall be inserted;
(3) in section 54 ,-
(i) in sub-section (6), after the words “supply of goods or services or both”, the words, brackets and figures “or of unutilised input tax credit allowed under clause (ii) of the first proviso to sub-section (3)” shall be inserted;
(ii) in sub-section (14), after the words, brackets and figures “sub-section (5) or sub-section (6)”, the words and symbols “, other than cases where refund of tax is claimed on account of goods exported out of India with payment of tax,” shall be inserted.
[Notification No. KLS/3654/2026-Legin1]
