Section 18C(2) in The Kerala Value Added Tax Act, 2003
(2)Notwithstanding anything contained in section 6 and section 18B, hospitals not covered under sub-section (1), shall be exempted from further tax liability on their sale of medicines and other consumables subject to the following conditions:-(i)All the purchases of medicines shall be from dealers paying compounded tax as per clause (e) of section 8;(ii)all the purchases of other consumables are made from dealers registered under this Act at the maximum retail price; and(iii)They shall file option for availing this exemption before 30th April of every year:Provided that if such hospitals pay the entire tax assessed/determined on or before 31st March, 2014, they shall not be liable to pay any penalty and /or interest under this Act.
