Government of Kerala has notified the Kerala Amnesty Rules, 2025, introducing a comprehensive framework to operationalise the General Amnesty Scheme, 2025. This scheme is intended to provide relief by settling outstanding arrears of tax, surcharge, penalty, and interest under various State laws for the periods up to 2017–2018.

The scheme covers enactments such as the Kerala General Sales Tax Act, Kerala VAT Act, Central Sales Tax Act, and other now-repealed state laws. Eligible taxpayers must not have pending appeals on the application date unless withdrawal permissions are obtained.

Key Highlights:

1. Eligibility & Scope: The scheme applies to all arrears up to 2017-18 under specified Acts such as the Kerala VAT Act, KGST Act, Kerala Surcharge Act, and related legislation.

2. Application Process (Forms NSTY-I to XI):
The rules introduce a series of standardised forms that govern the entire settlement procedure:

• • NSTY-I: Application for settlement.
  • NSTY-II: Acknowledgement of receipt.
  • NSTY-III: Notice from authority requiring additional payment.
  • NSTY-IV: Certificate of Settlement.
  • NSTY-V: Intimation of Certificate Issuance to Authorities (e.g., Tribunal, Courts).
  • NSTY-VI: Intimation of defects or omissions.
  • NSTY-VII: Order of Refusal of application.
  • NSTY-VIII: Intimation of refusal to relevant authorities.
  • NSTY-IX: Form of Memorandum of appeal.
  • NSTY-X & XI: Revocation Certificate and its intimation if false/misleading information was found.

3. Waiver Details:
Upon successful settlement, a waiver is granted for the remaining unpaid portion of arrears after the approved payment. The certificate includes a clear breakup of tax, penalty, and interest components waived.

4. Rejection & Appeal Mechanism:
If the application has defects or is non-compliant, the authority may reject it, giving the applicant a chance to rectify issues. The decision can be appealed to an appellate authority using Form NSTY-IX.

5. Revocation Clause:
If it is discovered that the applicant secured a settlement by suppression or falsehood, the designated authority may revoke the Certificate of Settlement under Form NSTY-X.

6. Digitally Signed Gazette:
All notifications and forms are issued through a digitally signed platform, enhancing transparency and traceability.

This rule notification finalises the procedural aspects of the scheme as envisaged under Section 16 to 22 of the Act, enabling eligible taxpayers to regularise old disputes and avoid prolonged litigation.