The law department has approved the amendment of the Goa Value Added Tax Act, 2005, to allow liquor retailers, small bars and taverns to opt into a tax composition scheme just once, instead of renewing it every year. This change comes into effect from April 1.
According to a senior official from the state tax department, the option is to be exercised only once by paying Rs 700 as a fee, which is valid for a lifetime until the bar or liquor store voluntarily opts out of the composition slab. At present, liquor stores, taverns and bars renew their composition enrolment every year by paying an annual renewal fees of Rs 500. This is said to be a big relief for liquor retailers and bars under VAT.
A liquor store or bar can exit the composition scheme enrolment only by submitting a written application to the registration authority, specifying the date from which they wish to opt out.
The amendment also states that a dealer’s composition option is automatically invalidated if their aggregate turnover during a financial year exceeds the prescribed limit, or if they violate any other eligibility conditions attached to the scheme.
Bars and alcohol stores under the composition scheme are barred from claiming input tax credit, from charging tax on sales, and from issuing tax invoices to others.
If the VAT assessee has more than one business activity, the turnover limit for each class of business applies separately. For the purpose of calculating total turnover under the VAT composition scheme, any turnover of goods that falls under GST is not counted, the department said.
Separately, the amendment inserts a new sub-section into Section 33 of the principal Act, capping the window for filing VAT refund applications at two years from the close of the financial year to which the refund pertains.
