The Kerala government's decision to promulgate the Kerala Taxation Laws Amendment 2024 Ordinance has sparked debates about the appropriateness of the move, especially with the next Assembly session scheduled to begin on October 4. The State has approached the Governor for the ordinance to amend key taxation laws, including the Kerala Finance Act 2008, Kerala Finance Act 2024, and the Kerala State Goods and Services Tax Act 2017.
While the amendments to the first two Acts focus on amnesty schemes for tax defaulters, the changes to the Kerala GST Act introduce penal provisions for traders failing to follow mandatory registration procedures. The ordinance is essential for enforcing penal provisions mandated by recent amendments to the central GST Act, effective from October 1, 2024.
Law Minister P. Rajeeve defended the decision, explaining that the regular legislative process would not meet the October 1 deadline, as it would take weeks to pass an amendment Bill. The ordinance ensures the penal provisions take effect as scheduled, without retroactive complications.
Should the Governor decline the ordinance, the State could face a legal deadlock. If cleared, the bill must pass in the upcoming Assembly session or be re-promulgated within 42 days after the session begins.
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