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     THE CENTRAL SALES TAX

(REGISTRATION AND TURNOVER) RULES, 1957*

In exercise of the powers conferred by sub-section (1) of Section 13 of the Central Sales Tax Act,1956 (74 of 1956), the Central Government hereby makes the following rules, namely: -.

.

            1.Short title:- These rules may be called the Central Sales Tax (Registration and Turnover)

Rules, 1957.

2.Definition:- In these rules, unless the context otherwise requires­

(a) "Act' means the Central Sales Tax Act, 1956;

1[(aa) "authorised officer' means an officer, authorised by the Central Government under clause (b) of sub-section (4) of Section 8];

                2[ (aaa) "company' means a company as defined in Section 3 of the Companies Act, 1956 (1 of1956) and includes a foreign company within the meaning of Section 591 of that Act].

(b) "form" means a form appended to these rules;

      (c)"notified authority' means the authority specified under sub-section (1) of Section 7;

1[(cc) "prescribed authority' means the authority empowered by the Central Government under 3[sub-section (2) of Section 9], or the authority prescribed by a State Government under clause (e) of sub­section (4) of Section 13, as the case may be;

(d)"section" means a section of the Act.

4[(dd) x x x x]

(e) "warehouse" means any enclosure, building or vessel in which a dealer keeps a stock of

goods for sale.

            3.Certificate of Registration:- (1) An application for registration under Section 7 shall be made by a dealer to the notified authority in Form 'A' and shall be-         '

(a) signed by the proprietor of the business, or in the case of a firm by one of its partners or, in the case of a Hindu Undivided Family, by the Karta or manager of the family, or, in the case of a company 5[XXXX] by a director, managing agent or principal officer thereof, or, in the case of a Government, by an officer duly authorised by that Government, or in the case of any other association of individuals, by the principal officer managing the business; and

(b) verified in the manner provided in the said Form 'A'.

(2) Where a dealer has more than one place of business within a State, he shall make a single application in respect of all such places, name in such application one of such places as the principal place of business for the purposes of these rules and submit such application to the notified authority specified in respect of the principal place of business so named:

Ammendments------------------------------------------------------------------------------------------------------------------------

*Published under Notification S.O.R. No. 644, dt 28-2-1957, Gazette of India, Extraordinary Part II, Section 3.
 1. Clause (aa) & (cc) inserted by Noti: No. G.S.R. 896 dt 23-9-1958.

2. Clause (aaa) inserted by Noti: No. F. 28/54/73-ST dt 1-2-1974.

3. Substituted for .Sub-section (3) of section 9" by Noti: No. G.S.R. 56 (E), dt 9-2-1973, w.e.f. 1-4-1973.

4.Clause (dd) omitted by Noti: No. G.S.R. 56 (E) dt 9-2-1973. Prior to the omission Clause (dd) as inserted by Noti: No.     G.S.R. 896 dt 23-9-1958 read as under:

"(dd) 'transferor' means any person who effects a sale in the mode referred to in Clause (b) of Section 3".

5.The words "incorporated under the Companies Act, 1956" omitted by Noti: No. G.S.R. 26-E dt 1-2-1974.

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Provided that any place so named shall not in any case be different from the place, if any, declared by him to be principal place of business, by whatever name called, under the general sales tax law of the State.

               4.(1) An application for registration under sub-section (1) of Section 7 shall be made not later than thirty days from the date on which the dealer becomes liable to pay tax under the Act.

                 (2) An application for registration under sub-section (2) of Section 7 may be made at any time after the commencement of the Act.        '

  6[(3) A fee of 7[rupees twenty five] shall be payable in respect of every application for registration under sub-rule (1) or sub-rule (2), and such fee may be paid in the form of court fee stamps affixed to such application.]

5. (1) When the notified authority is satisfied, after making such enquiry as it thinks necessary, that the particulars contained in the application are correct and complete, 8[and the fee referred to in sub-rule (3) of Rule 4 has been paid] it shall register the dealer and grant him a certificate of registration in Form 'B' and also a copy of such certificate for every place of business within the State other than the principal place of business mentioned therein.

9[(2) When the said authority is not satisfied that the particulars contained in the application are correct and complete, or where the fee referred to in sub-rule (3) of rule 4 has not been paid, he shall reject the application for reasons to be recorded in writing:

       Provided that before the application is rejected, the applicant shall be given an opportunity of being heard in the matter and, as the case may be, of correcting and completing the said particulars or complying with the requirements of sub-rule (3) of Rule 4.]

6.The certificate of registration granted under sub-rule (1) of Rule 5 shall be kept at the principal place of business mentioned in such certificate and a copy of such certificate granted under the said sub-rule shall be kept at every place of business within the State other than the principal place of business, mentioned in such certificate.

             7. (1) Where a dealer desires the certificate of registration granted to him under these rules to be amended, he shall submit an application for this purpose to the notified authority setting out the specific matters in respect of which he desires such amendment and the reasons therefore, together with the certificate of registration and the copies thereof., if any, granted to him; and such authority may, if satisfied with the reasons given, make such amendments, as it thinks necessary, in the certificate of registration and the copies thereof, if any, granted to him.

             (2) The provisions of Rule 6 shall apply in relation to such amended certificate and copies

    thereof, as they apply in relation to the original certificate and copies thereof.,                                            . ,

            8. (1) Where the certificate of registration granted to a dealer is lost, destroyed, defaced or mutilated, he may on application made in this behalf to the notified authority and on payment of a fee of 10[five rupees] obtain a duplicate copy of such certificate.

(2) The fee payable under sub-rule (1) shall be paid in the form of 11[court fee stamps.]

12[9. Amendment or cancellation of certificate of registration: - [(1) A notified authority shall,

Ammendments-----------------------------------------------------------------------------------------------------------------------

6.Sub-rule (3) inserted by Noti: No. G.S.R. 896 dt 23-9-1958.

7.Substituted for "Rupees five" by Noti: No. G.S.R. 395(E) dt 14-4-1987) w.e.f. 14-4-1957.

8.Inserted by Noti: No. G.S.R. 896 dt 23-9-1958.

9.Sub-rule (2) Substituted by ibid. Prior to the substitution it read as under:

"(2) when the said authority in not satisfied that the particulars contained in the application are correct and complete, it       shall reject the application for reasons to be recorded in writing:

Provided that such rejection shall not be made before giving the applicant any opportunity of being heard In the matter".

Ammendments
10. Substituted for "two rupees" by Noti: No. G.S.R. 395(E) dt 14-4-1987.

11. Substituted for "local revenue stamps" by Noti: No. G.S.R. 401 dt 9-3-1963.

12. Rule 9 substituted by Noti: No. G.S.R. '896 dt 23-9-1958. Prior to the substitution it read as under:

"(9) Cancellation of registration:- A notified authority shall before canceling the registration of a dealer under sub­section (4) of Section 7, give him an opportunity of being heard, wherever practicable, and if the registration is cancelled, the dealer shall forthwith surrender to the notified authority the certificate of registration and the copies thereof, if any, granted to him".

-------------------------------------------------------------------------------------------------------------------------before amending or canceling, as the case may be, the certificate of registration of a dealer under sub­section (4) of Section 7, give him an opportunity of being heard in the matter.      .

(2) If the certificate of registration is proposed to be amended, the dealer shall forthwith produce to the notified authority the certificate of registration and copies thereof; if any, granted to him, for having them amended.

(3) If the certificate of registration is cancelled, the dealer shall forthwith surrender to the notified authority the Certificate of registration and the copies thereof, if any, granted to him.]

10.lf any dealer desires to apply under sub-section (5) of Section 7 for the cancellation of his registration, he shall submit within the time specified in that sub-section to the notified authority an application in that behalf together with the certificate of registration and copies thereof, If any, granted to him; and such application shall be dealt with in accordance with the provisions of that sub-section.

11. Determination of turnover:- 13[(1) The period of turnover in relation to any dealer liable to pay tax under this Act shall be the same as the period in respect of which he is liable to submit returns under the general sales tax law of the appropriate State:

Provided that in relation to a dealer who is not liable to submit returns under the General Sales Tax Law of the appropriate State, the period of turnover shall be a quarter ending on the 30th June, 30th September, 31st December and 31st March, as the case may be, in a financial year.]

14[(2) xxxx]

12. (1) The declaration and the certificate referred to in sub-section (4) of Section 8 shall be in form 'C' and '0' respectively:

[Provided that form C in force before the commencement of the Central Sales Tax (Registration and Turnover) (Amendment). Rules, 1974, or before the commencement of the Central Sales Tax (Registration and Turnover) (Amendment) Rules, 1976, may also be used up to  

 31st December (1980), with suitable modifications.

15[x x x x]

16[Provided further that a single declaration may cover all transactions of sale which take place in one financial year between the same two dealers]

17[Provided also that where, in the case of any transaction of sale, the delivery of goods is spread over to different financial years it shall be necessary to furnish a separate declaration or certificate in respect of goods so delivered in each financial year.]

(2). Where a blank or duly completed form of declaration is lost, whether such loss occurs while it is in the custody of the purchasing dealer or in the transit to the selling dealer, the purchasing dealer shall furnish in respect or every such form so lost an indemnity bond 18[in Form G] to the notified authority from whom the said form was obtained, for such sum as the said authority may, having regard to the circumstances of the case, fix. Such indemnity bond shall be furnished by the selling dealer to the notified authority of his State if a duly completed form of declaration received by him is lost, whether such loss occurs while it is in his custody or while it is in transit to the notified authority of his State.

18[Provided that where more than one form of declaration is lost, the purchasing dealer or the selling dealer, as the case may be, may furnish one such indemnity bond to cover all the forms of declarations so lost.]

Ammendments ------------------------------------------------------------------------------------------------------------------

13. Original rule 11 renumbered as sub-rule (1) of that rule and inserted sub-rule (2) by Noti: No. G.S.R. 3613 dt 6-11­-1957.

14. Sub-rule (2) omitted by Noti: No. G.S.R. 1362 dt 9-6-1969. In effect the omitted sub-rule is enacted in Section 8A of the Act.            .

15. Second proviso omitted by G.S.R. 695(E) dt. 20-11-1998. The omitted proviso as inserted by Noti: No. G.S.R. 2017, dt 4-11-1968 read as under:

"Provided further that no single declaration or certificate shall cover more than one transaction of sale, except in cases where the total amount of sales made in a financial year covered by one declaration or certificate is equal to or less than A[Rupees one lakh] or such other amount as the Central Government may, by a general order, notify in the Official Gazette          

  

                               A. Substituted for °Rs: 25,000/-" by Noti: F. No. 28/4/92 - ST dt 30-9-1993.                               .

16. Proviso inserted by G.S.R. 483(E) dt. 7-8-1998.

17. The third proviso inserted by Noti: F. No. 28/54/75/ST dt 30-12-1975.

18. Inserted by Noti: ENo. 28/53/73-ST dt 1-2-1974.

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(3) Where a declaration form furnished by the dealer purchasing the goods or the certificate furnished by the Government has been lost, the dealer selling the goods may demand from the dealer' who purchased the goods or, as the case may be, from the Government, which purchased the goods or,as the case may be, form the Government, which purchased the goods, a duplicated of such form or certificate, and the same shall be furnished with the following declaration recorded in red ink and signed by the dealer or authorised officer of the Government, as the case may be, on all the three portions of such form or certificate:-   '

"I hereby declare that this is the duplicate of the declaration form/ certificate No……….Signed on,        and issued to............. who is 'registered dealer of..................................................... (State) and whose registration certificate number is……………”]

           (4) The certificate referred to in sub-section (2) of Section 6 shall be in Form E-I or Form E II as the case may be.

           19[(5) The declaration referred to in sub-section (1) of Section 6A shall be in Form "F".

20[Provided further that a single declaration may cover transfer of goods, by a dealer, to any other place of his business or to his agent or principal, as the case may be, effected during a period of one calendar month:

 
           Provided further that if the space provided in Form "F" is not sufficient for making the entries, the particulars specified in form 'F' may be given in separate annexures attached to that form so long as it indicated in the form that the annexures form part thereof and every such annexure is also signed by the person signing the declaration in Form "F":

Provided further that Form 'F' in force before commencement of the Central Sales Tax (Registration and Turnover) (Second Amendment) Rules, 1973 may continue to be used up to 31st December, 1980, with suitable modifications.]

(6) Form 'C' referred to in sub-rule (1), or as the case may be, Form 'F' referred to in sub-rule (5) shall be the one obtained by the purchasing dealer or, as the case may be, the transferee in the State in which the goods covered by such form are delivered.

21 [Explanation:- Where, by reason of the purchasing dealer not being registered under Section 7, in the State In which the goods covered by Form 'C' referred to in sub-rule (1) are delivered, he is not able to obtain the said form in that State, in Form 'C' may be the one obtained by him in the State in which he is registered under the said Section.]

             (7) The declaration in Form 'C' or Form 'F' or the certificate in Form 'E-I' or Form 'F-II' shall be furnished to the prescribed authority upto the time of assessment by the first assessing authority:

Provided that if the prescribed authority is satisfied that the person concerned was prevented by sufficient cause from furnishing such declaration or certificate within the aforesaid time, authority may allow such declaration or certificate to be furnished within such further time as that authority may permit.

(8) (a) The person referred to in clause (a) of sub-rule (1) of Rule 3 shall alone be competent to sign the declaration in Form 'C' or Form 'F' or the certificate in Form 'E-I' or Form 'E-II'.

22[Provided that where such person is a proprietor of any business or 'a partner of a firm or a Karta or manager of a Hindu Undivided Family, any other person authorised by him in writing may also sign such declaration or certificate.]

23[Provided further that in the case of 24[a company, such declaration or certificate] can also be signed by any other officer of the company authorised under the Memorandum or Articles of Association of the company or under any other special or general resolution of the company or under a resolution passed by the Board of Directors of the company to authenticate any document on behalf of such company.]

Ammendments----------------------------------------------------------------------------------------
19. Sub-rules (5) to (9) inserted by Noti: ENo. 2813O172-ST-1I dt 9-2-1973.

20. Proviso inserted by Noti: E No. 28139f73 -ST dt 11-12-1973.

21. Explanation inserted by Noti: E No. 28/53173 - ST dt 1-2-1974.

22. Proviso substituted by Noti: No. F 28/53/73 - ST dt 1-2-1974.

23. Second proviso inserted by Noti: No. F 28/39(73- ST dt 13-12-1973.

24. Substituted for "a company incorporated under the Companies Act, 1956 (1 of 1956), the declaration in Form 'C' or Form 'F'" by Noti: No. F. 28/53(73 - ST dt 1-2-1974.

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           (b) Such person shall signify on such declaration or certificate his status and shall make a

verification in the manner provided in such declaration or certificate.

          (9) (a) The provisions of 25[XXXX] sub-rule (2) and sub-rule (3) shall, with necessary

modifications, apply to the declaration in Form 'F' or the certificate in Form 'E-I' or Form 'E-II'.

           26[(b) The provisions of. the second and third proviso to sub-rule (1) shall with necessary

modifications, apply to certificates in Form E-I or Form E-I!.]

27[(10) (a) A dealer may in support of his claim that he is not liable to pay tax under this Act in respect of any sale of goods on the ground that the sale of such goods is a sale in the course of export of those goods out of the territory of India within the meaning of sub-section (3) of Section 5, furnish to the prescribed authority a certificate in Form H duly filled and signed by the exporter along with evidence of export of such goods.

27A[x x x x]

          (b) The provisions of the rules framed by the respective State Governments under sub-section (3), (4) and (5) of Section 13 relating to the authority from whom and the conditions subject to which any form of certificate in Form H may be obtained, the manner in whi9h such form shall be kept in custody and records relating thereto maintained and the manner in which 'any such forms may be used and any such certificate may be furnished in so far as they apply to declaration in form C prescribed under these rules shall mutatis mutandis apply to certificate in form H.]

27B[(11) The dealer, selling goods in the course of inter-state trade or commerce to a registered dealer under sub-section (6) or under sub-section (8) of section 8 or under sub-section (1) of section 5 of the Central Sales Tax Act, 1956 read with section 76A of the Customs Act, 1962 (52 of 1962), shall furnish a declaration for the purposes of sub-section (8) of the said section 8 in "Form I" duly countersigned and certified by the Authority specified by the Central Government authorizing the establishment of the unit in the Special Economic Zone (notified under section 76A of the Customs Act, 1962 (52 of 1962) that the sale of goods is for the purpose of establishing a unit in such Zone]

28[13. Prescription of goods for certain purposes.- The goods referred to in clause (b) of sub­

section (3) of section 8, which a registered dealer may purchase, shall be, goods intended for use by him, as raw materials, processing materials, machinery, plant, equipment, tools, stores, spare parts, accessories, fuel or lubricants, in the manufacture or processing of goods for sales or in mining, or in the generation or distribution of electricity or any other form of power.

29[14. If any person commits a breach of any of these rules, he shall be punishable with fine, which may extend to five hundred rupees and when the offence with a daily fine, which may extend to fifty rupees for every day during which the offence continues.]

Ammendments--------------------------------------------------------------------------------------------------------
25. Omitted the words "the second and the third proviso to sub-rule (i)" by Noti: No. G.S.R. 395(E) dt 14-4-1987.

26. Clause (b) inserted by Noti: No. G.S.R. 395(E) dt 14-4-1987.

27. Sub-rule (10) inserted by Noti: No. G.S.R. 762(E) dt 17-12-1977.

27A.Proviso inserted by Noti: No. G.S.R. 36(E) dt. 16-1-2003 and omitted by G.S.R. 431(E) dt. 23-5-2003. The omitted proviso read as under:

       "Provided that where the claim of the dealer relates to sub-section (8) of Section (8), the dealer shall get the Form'H' duly countersigned and certified by the authority specified by the Central Government authorising the establishment of the unit in the Special Economic Zone (notified under section 76A of the Customs Act, 1962) (52 of 1962), that the sale of goods is for the purpose of establishing a unit in such Zone, and the declaration in Form 'H' prescribed under this rule shall, mutatis mutandis apply to the declarations of the dealer and certificate to be obtained from the said authority notified under section 76A of the Customs Act, 1962"

27B. Inserted by GSR 431 (E) dt. 23-5-2003.

28. Rule 13 inserted by Noti: No. G.S.R. 896 dt 23-9-1958.

29. Rule 14 inserted by Noti: No. F. 28/30/72 – ST-ll, dt 9-2-1973.

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THE CENTRAL SALES TAX(KERALA) RULES, 1957

In exercise of the powers conferred by sub-section (3) and (4) of Section 13 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956 the Government of Kerala hereby make the following rules,      namely:­

1. These rules may De called the Central Sales Tax (Kerala) Rules, 1957.

2. In these rules unless the context otherwise requires­

(a) "Act' means the Central Sales Tax Act, 1956 (Central Act 74 of 1956);

(b) "Assessing Authority' means the assessing authority under the General Sales Tax Law for the time being in force in the State of Kerala;

             (c) "Central Sales Tax Rules" means the rules passed by the Central Government under sub­section (1) of Section 13 of the Act;

             (d) "Form" means a form appended to these rules;

             (e) "Registering authority' means the authority specified under sub-section (1) of Section 7 of the Act;

(f) "Sales Tax Rules" means the rules made by the State Kerala under sub-section (3) and (4) of Section 13 of the Act;

(g) "Section" means a Section of the Act;

(h) "State" means the State of Kerala.

3. 1[XXXX]

4. 2[XXXX]

5. (1) Every dealer registered under Section 7 of the Act and every dealer liable to pay tax under the Act shall keep and maintain separately, a true and correct account in one of the following languages, Viz Malayalam, Tamil, Kannada, Gujarathi or English showing the goods sold and bought by him and the value thereof, in respect of the transactions under the Act. He shall maintain an accounts showing the day-to-day purchase, sales, deliveries and stocks of each kind of goods.

             3[(1A) Every registered dealer making sales in the course of Inter-State trade or commerce shall maintain correct and complete accounts for all such transactions in Form IA].

            (2) Every such dealer shall in respect of each transaction under the Act prepare in duplicate a voucher showing the date of transaction, the name, address, registration number, if any, and the State of Registration, of both the seller and the purchaser, the sale price, quantity and description of goods, and issue the original thereof, to the buyer. The voucher shall also specify the mode of despatch and delivery of goods with appropriate details.

(3) The vouchers of each kind shall be serially numbered, separately.

(4) Every dealer shall maintain all vouchers relating to stocks, purchases, sales and deliveries relating to all transactions under the Act for a period of three years after the close of the year to which they relate.

(5) Every dealer shall keep current books of account at the place or places of business.

Ammendment---------------------------------------------------------------------------------------------------------------------

  1. Rule 3 omitted by notification in K.G. dt. 21-6-1960.
  2.  Rule 3 omitted by notification in KG. dt. 17-5-1960.
  3. Sub-rule (1 A) inserted by notification in K.G. dt. 27-1-1959.

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            (6) Every dealer shall maintain separate accounts in respect of goods liable to different rates of tax under Section 8 of the Act

            4[5A. Every principal, who claims exemption on the sales of goods on consignment account

through agents outside the State shall maintain the following -records namely:­

(a) A register showing the name and full address of the agent to whom goods were consigned together with description of the goods so. despatched for sale, on each occasion and their quantity and value; 

(b) The originals of authorizations sent to the agent for the sale 6f the goods;

Note:- Copies of these authorizations and description of goods despatched for sale on each occasion with particulars of their quantity and value should be simultaneously furnished to the assessing officer concerned,

(c) the originals of the written contract, if any, entered into between the principal and the agent;

(d) Copies of bills issued by the agents to the purchasers;

(e) Pattials, namely, accounts rendered by the agents' to the principals from time to time showing the gross amount of the bill and deduction on account of commission and incidental charges;

             (f) Extract of the ledger account of the principal maintained in the books of the agents duly

            signed by such agents;

(g) Copies of railway receipts or lorry receipts under which the goods were so despatched; and;
(h) A register showing the date and mode of remittance of the amount to the principal].

           6. 5[(1) Every dealer other than a dealer referred to in the proviso to rule 11 of the Central Sales Tax (Registration and Turnover) Rules, 1957, registered under Section 7 of the Act shall submit a return of his transactions in Form II together with the connected 6 declaration forms in Form C and /or F] and the certificates in Forms 0, EI and Ell prescribed under sub-rules (1) and (2) of rule 12 of the said rules so as to reach the assessing authority 7[on or before 10th day of every month in respect of a special circle and on or before 15th day of every month in respect of other circles] showing the turnover for the preceding month and the amount or amounts collected by way of tax together with proof for the payment of the tax due thereon under the Act]                                                                                                        .                                               .

(1-A) Every dealer liable to pay tax under the Act other than a dealer to whom sub-rule (1) applies shall submit, so as to reach the assessing authority on or before the 20th day of the month succeeding the quarters ending 30th June, 30th September, 31st December and 31st March as the case may be, a return of his transactions in form II together with the connected 6[declaration forms in Form C and l/or F] and the certificates in Forms OJ EI and Ell showing the turnover for the preceding quarter and the amount or amounts collected by way of tax together with proof for the payment of tax due thereon under the Act.

8[(1-B) Notwithstanding anything contained in Sub-rules (1) & (1 A), the selling dealer who has not obtained the 6[declaration forms in form C and /or F] and the certificate referred to in Sub- rules (1) and (1 A) from the purchasing dealer by the due date for the submission of the return may obtain such 6[declaration forms in form C and /or F] and the certificates relating to any assessment year and produce the same before the assessing authority at any time before the assessment for the year is made].

(2) Every such dealer who discontinues his business during the course of the year shall submit to the assessing authority concerned within 30 days of such discontinuance a return in Form II in the manner 9[prescribed in sub-rule (1) or (1 A) for the month or quarter in which his business was discontinued].

10[(2A. If any dealer, having furnished return under 11[sub-rules (1), (1-A), or (2) discovers any omission or wrong statement therein, he may furnish a revised return at any time before the assessment is made.]

Ammendment------------------------------------------------------------------------------------------------------------------

4. Rule 5A inserted by SRO. No.199/73 dt. 27-3-1973.

5.Sub-rule (1) substituted by notification in K.G. Ex. dt.29-5-1962.

6. Substituted by SRO. No.196/73 dt. 23-3-1973.

7. Inserted by SRO. No.125/95, w.e.f. 10-10-1995.

8. Sub-rule (1 B) substituted by SRO No..209/68, dt. 4-6-1968.

9. Substituted by notification in K.G. No.23 dt. 4-6-1962.

10. Sub-rule (2A) inserted by notification in K.G. dt. 14-1-1858.

11. Substituted by notification in K.G. dt. 29-5-1962.

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(3) The return in Form II so filed shall subject to the following sub-rule be provisionally accepted.

            12[(4) If no return is submitted in respect of any month or quarter 13[on or before the 10th day of every month in respect of a special circle and on or before the 15th day of every month in respect of other circle] or the 20th day of the succeeding month of the quarter, as the case may be, or if the return is submitted without proof for the payment of the full amount of the tax payable or if the return submitted appears to be incorrect or incomplete, the assessing authority shall, after making such enquiry as he considers necessary, and after giving the dealer an opportunity of proving the correctness and completeness of the return where the return has been submitted by the dealer, determine the turnover to the best of his judgment and provisionally assess the tax or taxes payable for the month or quarter, as the case may be, and shall serve upon the dealer a notice in Form III and the dealer shall thereupon pay the tax so assessed at the time and in the manner specified in the notice].

(5) After the close of the year the assessing authority shall after such scrutiny of the accounts and after such enquiry as he considers necessary satisfy himself that the return or returns filed are correct and complete and finally assess under a single order the tax or taxes payable under the Act for the preceding year or for the year to which the return submitted relates as the case may be provided that if no return or returns have been submitted by the dealer as required by 14[sub-rules (1), (1-A) and (2)] or if any return or returns submitted by him appear to the assessing authority to be incorrect or incomplete the assessing authority shall, after making such enquiry as he considers necessary and after giving the dealer an opportunity of proving the correctness and completeness of the return submitted by him, determine the turnover to the best of his Judgment and finally assess under a single order the tax or taxes payable under the Act for the preceding year or the year concerned. Such action may be taken in respect of a dealer who discontinues his business during the course of a year soon after such discontinuance.

(6) If, on final assessment made under sub-rule (5). any sum is still due from the dealer, a notice in Form IV shall be issued and, if any sum is due to the dealer, a notice in Form V shall be served upon the dealer.

(7) 15[(i)] If for any reason, the whole or any part of the turnover of business of a dealer has escaped assessment to tax in any year, the assessing authority may at any time [within four years from the expiry of the year to which the tax relates proceed to] determine to the best of his judgment the turnover which has escaped assessment and assess the tax payable on such turnover after issuing a notice to the dealer and after making such enquiries as he considers necessary.

15[(ii) Where an assessment or re-assessment has been deferred on account of any stay order granted by the High Court or any competent authority in any case, or by reason of the fact that an appeal or other proceeding is pending before the High Court or the Supreme Court involving a question of law having a direct bearing on the assessment in question, the period during which the stay order was in force or such appeal of proceeding was pending shall be excluded in computing the period of four years specified in clause (i).

(iii) Where an assessment or re-assessment has been set aside by the Appellate Tribunal or the High Court or the Supreme Court for any reason, the period between the date of such assessment and the date on which it has been set aside shall be excluded in computing the period of four years specified in clause (i).]

(8) If, for any reason, any tax has been assessed at too Iowa rate in any year, the assessing authority may 16[within four years from the expiry of the year to which the tax relates, proceed to] revise the assessment after issuing a notice to the dealer and after making such enquiry as he considers necessary.

Ammendments-----------------------------------------------------------------------------------------------------------------12. Sub-rule (4) inserted by notification in KG. dt.29-5-1962.

13. Substituted for "before the 20th day of the succeeding month" by SAO No.1254/95, w.e.f. 10-10-1995.

14. Substituted by. notification in KG: dt. 29-5-1962.
15. Original sub-rule (7) renumbered as clause (i) thereof and added clause (ii) & (iii) by SAC. No.60/67 dt. 7-3-1967.

16. Substituted by SAC. No.88/64, dt.31-3-1964.

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            (9) An assessing authority may, at any time within three years from the date of and order passed by him, rectify and mistake apparent from the record:

Provided no such rectification which has the effect of enhancing the assessment shall be made unless the assessing authority has given a notice to the dealer of the intention to do so and has allowed him a reasonable opportunity of being heard.

(10) The powers under sub-rules (7), (8) and (9) can be exercised by an assessing authority even though the original assessment, if any, passed in the matter has been the subject matter of an appeal or revision.

7. Any officer not below the rank of an assessing authority may require any dealer carrying on Inter-State sales or purchases, to produce before him, the accounts and other documents and to furnish any other information relating to such business.

8. All accounts and registers maintained by registered dealers the goods in their possession and their offices, shops, godowns, vessels or vehicles shall be open to inspection at. all reasonable time by such officers who have been authorised to exercise similar powers under the General Sales Tax Law for the time being in force in the State of Kerala.

9. Any officer duly authorised under the Kerala General Sales Tax Law for the time being in force in the State of Kerala in this behalf shall have powers to enter at all reasonable times for the purpose of searching for any such books, accounts or documents kept or suspected to be kept in any office, shop, godown, vessel, vehicle or any other place in which business is done.

10. If any officer not below the rank of an assessing authority, has reason to suspect that any dealer is attempting to evade the payment of any tax or fee due from him under the Act, he may, for reasons to be recorded in writing seize such accounts, registers or documents of the dealer, as may be necessary and shall grant a receipt for the same. The officer who seizes such accounts, registers or documents shall return them within ten days from the date of seizure unless they are required for prosecution.

11. (1) A registered dealer, who wishes to purchase goods from another such dealer on payment of tax at the rate applicable under the Act to sales of goods by one registered dealer to another, for the purpose specified in the purchasing dealers certificate of registration shall obtain from the registering, authority .17[blank declaration forms] prescribed under rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957 18[on payment of a fee] 19[at the rate of 20[20A[rupees fifty] per book of twenty five forms and 20A[rupees two hundred] per book of one hundred forms] for furnishing it to the selling dealer. Before furnishing the declaration to the selling dealer the purchasing dealer, or any responsible person authorised by him in his behalf, shall fill in all required particulars in the form and shall also affix his signature in the space provided in the Form for this purpose. Thereafter, the counterfoil of the Form shall be retained by the purchasing dealer and the other two portions marked "Original" and "Duplicate" shall            be made over by him to the selling dealer.

21[ x x x x]

22[(1 A) Purchasing dealer shall issue the declaration in form 'C' obtained from the registering authority as provided in sub-rule (1), only if the goods purchased are to be delivered to the dealer in this State and not to any other branch or other place of business of the dealer in any other State:

Provided that in a case where Head Officer of a dealer in this state is ordering goods for a factory situated in another State of the dealer does not hold a registration under Central Sales Tax Act, 1956 in the State in which the factory is situated, the declaration in the form C shall be supplied by the Head Office or the branch that places the order]

Ammendments----------------------------------------------------------------------------------------------------------
17. Substituted by "a blank declaration form" by SAO No. 917/81 dt. 3-8-1981.

18. Inserted by notification in KG. dt. 1-10-1958.

19. Inserted by SAO No.616/75, dt. 25-7-1975.

20. Substituted for "rupees twelve per book of twenty five forms and rupees forty per book of one hundred forms by SAO No.394/82 dt. 14-19-1982 the original entry was "rupees ten per book of as forms".

20A.Substituted for "rupees twenty" & "rupees eighty" respectively by S.RO. No. 226/99 w.e.f. 10-3-1999.

21. Proviso omitted by notification in K.G. No.23 dt. 4-6-1968.

22. Sub-rule (1A) inserted by notification in K.G. No.50 dt. 20-12-1996.

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(2) A registered dealer who claims to have made a sale to another registered dealer shall, in respect of such claim, attach to his return to the assessing authority the portion marked 'Original' of the declaration received by him from the purchasing dealer. The assessing authority may, in its discretion; also direct the selling dealer to produce for inspection the portion of the declaration marked 'Duplicate'.

(3) No purchasing dealer shall give, nor shall a selling dealer accept, any declaration except in a Form obtained by the purchasing dealer, on application from the Registering Authority and not declared obsolete and invalid by the Board of Revenue, Kerala State under the provisions of sub-rule

 (4) Every declaration Form obtained from the Registering Authority by a registered dealer shall be kept by him in safe custody and he shall be personally responsible for the loss, destruction or theft of any such form or the loss of Government revenue, if any, resulting directly or indirectly from such theft or loss.

(5) 23[(i)] Every registered dealer to whom any Declaration Form is issued by a Registering Authority shall maintain, in a register in Form VI a true and complete account of every such Form received from the Registering Authority. If any such Form is lost, destroyed or stolen, the dealer shall report the fact to the Registering Authority immediately, shall make appropriate entries in the remarks column of the register in Form VI, and take such other steps to issue public notice of the loss, destruction or theft as the Registering Authority may direct

23 [(ii) If any declaration form which has been filled in and put to use, but subsequently lost in transit and in lieu of which a duplicate declaration form has been issued under sub-rule (3) of rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957, the dealer shall report the fact to the registering authority immediately].

             24[XXXXX]

             (6) Any unused declaration forms remaining in stock with a registered dealer on the cancellation of his registration certificate shall be surrendered to the Registering Authority].

(7) No registered dealer to whom a Declaration Form is issued by the Registering Authority shall, either directly or through any other person, transfer the same to another person except for the lawful purpose of sub-rule (1).

(8) A Declaration Form in respect of which a report has been received by the Registering Authority under sub-rule (5) shall not be valid for the purpose of sub-rule (1).

(9) The Board of Revenue': Kerala State shall from time to time publish in the Official Gazette the particulars of the declaration form in respect of which a report is received under sub-rule (5).

25[(10) The State Government may by notification to be published In the Official Gazette, declare that the declaration .forms of the particular series, design or colour shall be deemed as obsolete and invalid with effect from such date as may be specified in the notification. The State Government may also furnish information regarding such declaration forms to other State Government and to the Government of India for publication in their Gazettes].

(11) When a notification, declaring declaration forms of a particular series, design or colour, obsolete and invalid, Is published under sub-rule (10) all registered dealers shall on or before the date with effect from which the declaration forms are so declared obsolete and invalid, surrender to the Registering Authority all unused declaration forms of that series, design or colour which may be in their possession and obtain In exchange such new declaration forms as may be substituted for the declaration forms declared obsolete and invalid.

26[(12) Every  registered dealer shall submit to the Assessing Authority a true copy of the register in Form VI maintained by him so as to reach the assessing authority on or before the 30th April succeeding the previous financial year].

Ammendmnts-----------------------------------------------------------------------------------------------------

23. Sub-rule (5) renumbered as clause (i) thereof and inserted clause (ii) by SAO No.19172 dt. 11-1-1972.

24. Clause (iii) inserted by notification in KG. dt. 16-12-1958 and later omitted by notification in KG. No.16 dt.22-4­-1969, with effect from 1-12-1968.

25. Sub-rule (10) substituted by notification in KG. dt.27-12-1960.

26. Sub-section (12) added by S.RO. No.1680/87 dt. 8-12-1987.

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           27[11 A. (1) An authorised Officer of the Central or the State Government to whom goods are sold in respect of which the rate of tax prescribed under sub-section (1) of Section 8 in applicable shall furnish a certificate provided for in clause (b) of sub-section (4) of Section 8 in the Form '0'

prescribed under rule 12( 1) of the Central Sales Tax (Registration and Turnover) Rules, 1957. Before furnishing the certificate to the selling dealer the purchasing officer shall fill in all the required particulars in the form and also affix his signature and office Seal in the space provided in the form for that purpose. The counterfoil of the form shall be retained by the purchasing officer and the other two portions marked "original" and "duplicate" shall be made over by him to the selling dealer.

28[ xxxx ]

29[XXXX]

(2) A registered dealer who claims to have made a sale to a Government, not being a registered dealer shall In respect of such claims attach to his return to the assessing authority the portion marked "original" of the certificate received by him from the purchasing officer. The assessing authority may in its discretion also direct the selling dealer to produce for inspection of the certificate marked "duplicate".

30[11B. (1) (a) In the case of a first sale referred to in31[sub-section (2) of Section 6] the selling dealer shall issue a certificate as provided for in the proviso to sub-section (2) of Section 6 of the Act In form E-I prescribed under Rule 12(2) of the Central Sales Tax (Registration and Turnover) Rules, 1957, to the registered dealer to whom the sale is effected. Before furnishing the certificate to such purchasing dealer he or any person authorised by him in this behalf shall fill in all the required particulars in the form and shall also affix his signature in the space provided in the form for that purpose. Thereafter the counterfoil of the form shall be retained by the selling dealer ,and the portions marked 'original' and 'duplicate' shall be made over to the registered dealer who effects the purchase.

32[X x x x]

(b) The selling registered dealer shall pay the tax due under the Act to the State from which the movement of his goods commenced.

(c) The purchasing registered dealer who claims to have made a further subsequent sale by transfer of documents of title to the goods shall in respect of such claims under sub-section (2) of Section 6 furnish to the prescribed authority the portion marked 'original' of the Form E-I received by him from the selling dealer along with the original of declaration in Form 'C' received from the registered dealer to whom the sale is effected.

(2) (a) A registered dealer who effects 33[a second or subsequent sale referred to in sub-section (2) of Section 6] shall issue a certificate in Form E-II prescribed under Rule 12 (2) of the Central Sales Tax (Registration and Turnover) Rules, 1957. Before furnishing the certificate the selling dealer shall fill in all the required particulars in the form and shall also affix his signature in the space provided in the form for that purpose. Thereafter the counterfoil of the forms shall be retained by the selling dealer and the portions marked "original" and "duplicate" shall be made over by him to the purchasing dealer to whom the subsequent sale is effected.           

34[xxxx]

(b) The purchasing registered dealer at this link in the chain of sales who claims to have made

a subsequent sale to another registered dealer by transfer of documents of title to the. goods, in respect of such claim under sub-section (2) of Section 6 shall furnish to the assessing authority the portion marked "original" of the Form E-II along with the original of the portion marked "original" of the Form E­li along with the original of the declaration in Form "C" received from the registered dealer to whom the sale is effected.

34A[(C) The purchasing registered dealer who claims to have made a second or subsequent sale by transfer of documents of title to the goods shall, in respect of such claim furnish to

Ammendmnts------------------------------------------------------------------------------------------------------------

27. Rule 11 A inserted by notification in K G. dt. 1-10-1958.

28. First proviso omitted by notification in KG. dt. 4-6-1968.

29. Second proviso omitted by notification in KG. dt. 25-7-1961.

30 Rule 118 added by notification in K.G. Ex. dt. 1-10-1958.

31. Substituted by SAC. No.196n3 dt. 20-3-1973.

32. Proviso omitted by SAC. No.209/68 dt.4-6-1968.

33. Substituted by SAC. No.196n3 dt. 23-5-1973.

34. Proviso omitted by SAC. No.209/68 dt. 4-6-1968.

34A.Clause(c) inserted by S.R.O. No. 848/99, w.e.f. 23-10-1999

the assessing authority a photocopy of the consignee copy of the Lorry Receipt. Railway Receipt. Bill of lading bearing endorsement made by such dealer or cash receipt in favour of the purchaser taking delivery of goods.]

(3) The procedure prescribed in sub-rule (2) shall be followed in respect of all other subsequent sales by transfer of documents of title to the goods during the movement of such goods from one State to another effected by a registered dealer to another registered dealer and a certificate in Form E-II shall be used in respect of such sales.

(4) The procedure for the supply, use, custody, maintenance and submission of declaration forms prescribed in Rule 11 shall apply mutatis mutandis to the supply, use, custody, maintenance and submission of the certificates in Forms E-I and E-II

35[xxxx]

         Provided further that no fee shall be charged for the supply of forms of Certificate E-I and E-II:

Provided that new declaration forms shall not be issued to a dealer until he has rendered account of the old declaration forms lying with him and returned the balance. if any, in his hand to the Registering Authority].

36[11 C. (1) A dealer who claims that he is not liable to pay tax in respect of any goods on the ground that the movement of such goods from one State to another was occasioned by reason of transfer of such goods by him to any other place of business. or his agent or principal as the case may be, and not by reason of sale in the course of inter-state trade of commerce shall obtain a declaration in form 'F' in duplicate duly filled and signed by the principal officer of the other place of business of his agent or principal, as the case may be, and shall attach to his return to the assessing authority the portion marked 'Original'. The assessing authority may in its discretion; also direct the dealer to produce for inspection the portion of the declaration marked 'Duplicate'.

(2) When goods are received on transfer and not by reason of sale or purchase in the course of interstate trade or commerce, from a Head Office, branch, agent or principal in another State by the branch, head office, principal or agent within the State, the person empowered under sub-section (1) of Section 6A or clause (a) or sub-rule (7) of Rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957, as the case may be, shall issue a declaration in form 'F' obtained from the registering authority and duly filled and signed by him to the head office, branch, agent, or principal, as the case may be, in the other State.

                                            .

(3) The blank declaration Form 'F' shall be issued by the registering authority, only to dealers registered under the Act on payment of a fee 37[at the rate of] 38[38A[rupees fifty] per book of twenty five forms and 38A[rupees two hundred] per book of one hundred forms]. .

             (4) No registered dealer shall give nor shall a dealer accept any declaration in Form 'F' except in a Form obtained by the registering authority and not declared obsolete and invalid by the Government of Kerala under the provisions of sub-rule (10) of rule 11 read with sub-rule (5) of this rule.

(5) The procedure for the supply use custody, maintenance and validity of declaration forms.prescribed in sub-rule (4) to (11) of rule 11 shall apply mutates mutandis, to the supply use, custody, maintenance and validity of declaration forms in form 'F'].

39[11 D. (1) The blank certificate in Form 'H' prescribed by the Central Sales Tax (Registration and Turnover) Rules. 1957 shall be issued by the registering authority only to dealers registered under the Central Sales Tax Act, 1956 or under the Kerala General Sales Tax Act, 1963 on payment of a fee at the rate of 40[38A[rupees fifty] per book of twenty five forms and 38A[rupees two hundred] per Book of one hundred forms].

Ammendmnts-------------------------------------------------------------------------------------------------------
35. First proviso omitted by SRO No.209/68 dt. 4-6-1968.

36. Aule 11C inserted by SRO. 196/73 dt.23-3-1973.

37. Substituted by SRO. No.616/75 dt. 25-7-1975.

38. Substituted for "rupees twelve per book of twenty five forms and rupees forty per book of one hundred forms by SAO No.394/82 dt. 14-19-1982 the original entry was "rupees ten per book of as forms".

38A.Substituted for "rupees twenty" & "rupees eighty" respectively by S.R.O. No. 226/99 w.e.f. 10-3-1999.

39. Aule 11D added by SRO. No.917/81 dt. 3-8-1981,

40. Substituted for "rupees twelve per book of twenty five forms and rupees forty per book of one hundred forms by SRO No.394/82 dt. 14-19-1982 the original entry was "rupees ten per book of as forms".

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(2) The provisions regarding the supply, use, custody, maintenance of account and validity of declaration forms in sub-rules (4) to (11) of rule 11 shall apply, mutatis mutandis, to the supply, use, custody, maintenance of account and validity of Form H].

12. Every dealer liable to registration under the Act and who is an undivided Hindu Family, an Association or Club, Society, Firm or Company or who carries on business as a guardian or trustee or otherwise on behalf of another person shall along with the application for registration send to the Registering Authority a declaration in Form VII stating the name of the person who shall be deemed to be the Manager of such dealer's business for the purpose of the Act. All statements and returns submitted by such manager shall be binding on the dealer. Such declaration may be revised from time to time.

41[12A (1) The security or additional security referred to in sub-section (2A), (3A), (3C) and (3E) of Section 7 shall be furnished in, any of the following modes as may be specified by the registering authority in the order passed by him, Viz­

             (a) by depositing as 'security in the Government treasury the amount fixed by the said authority; or

             (b) by depositing with the said authority Government securities for the amount fixed by the said authority; or

             (c) by depositing security amount in the Post Office Savings Bank and pledging the Pass Book to the said authority; or

 (d) by furnishing to the said authority a guarantee from a Bank, approved in this behalf by the said authority, agreeing to pay to the State Government, on demand, the amount of security fixed by the said authority; or

             (e) by furnishing two sureties, acceptable to thE3 said authority executing a security bond for such amount; or

      (f) by furnishing security of immovable property to the satisfaction of the said authority.

(2) Where an order of forfeiture of the whole or any part of the security is passed under sub­section (3D) of Section 7, the dealer shall within 30 days of the service of such order on him, make up the deficiency by furnishing additional security in any of the forms specified in sub-rule (1), as may be specified security by the registering authority, for an amount equal to the amount so forfeited.

12B(1) The appeal under sub-section 3(H) of Section 7 shall be preferred to the Appellate Assistant Commissioner appointed under Section 3 of the Kerala General Sales Tax Act, 1963, having jurisdiction over the area concerned. The appeal shall be in Form VIII and shall be verified in the manner specified there in.

             (2) The appeal may be sent to the appellate authority by Post or may be presented to that

authority by the appellant or his authorised agent or a legal practitioner.

             (3) The Appellate Authority shall after giving the appellants a reasonable opportunity of being heard, pass such orders on the appeal as such authority thinks fit.

(4) The procedure for hearing and disposal of the appeals under the Kerala General Sales Tax Act, 1963 and the rules thereunder, shall apply mutatis mutandis to the hearing and disposal of the appeals under sub-section 3(H) of Section 7].

13. If at any time a dealer liable to pay tax under the Act;

             (a) discontinues or sells or otherwise disposes of the whole or any part of any business carried  on by him, or

             (b) changes his place of business, or

             (c) changes the nature of any business carried on by him, he shall notify the fact to the Registering Authority within thirty days thereafter.

 14. Any person who contravenes any of the provisions of these rules shall on conviction by a Magistrate of the First Class, be liable to a fine which may extend to five hundred rupees and if the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which with the offence continues.

Ammendmnts--------------------------------------------------------------------------------------------------------
41. Rule 12A and 128 inserted by SRO, No, 196/73 dt. 23-3-1973. ­

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