(1) Any registered dealer covered under Schedule 'E' to the Act may apply to the Appropriate Assessing Authority in Form VAT-XIII to compound the tax assessable, within thirty days from the date of commencement of financial year or from the date of commencement of validity of registration certificate, or from the date of notification issued by the Government under sub-section (4) of section 5 of the Act and a new class of dealers or class of goods are included in the Schedule 'E' to the Act,as the case may be:

Provided that the Appropriate Assessing Authority may entertain an application for composition of tax filed by the dealer beyond said thirty days but not later than 60 days from the date of commencement of financial year or from the date of commencement of validity of registration certificate as the case may be, on payment of late fee of Rs.50/- per day of delay or a sum of Rs.1000/-, whichever is higher.

Provided further that upon an application made by the dealer to the Commissioner, the Commissioner may, by order, for reasons to be recorded in writing, direct the Appropriate Assessing Authority to entertain the application for composition of tax made after said sixty days but within one hundred and fifty days, from the date of commencement of financial year or from the date of commencement of the validity of registration certificate, as the case may be, on payment of late fee of Rs. 100/- per day of delay beyond said 60 days or a sum of Rs.5,000/-, whichever is higher,in addition to the late fee for the period specified in first proviso above. The dealer shall submit his application to the Commissioner alongwith application in Form VAT XIII and copy of the e-challan in proof of payment of late fee and court fee stamps of the value specified in rule 46 towards processing fee.

(2) The dealer of the class specified in Schedule 'D' to the Act, other than that covered by entry against serial number (5) of the said Schedule shall not be eligible for composition of tax in case he.-

(i) makes sales in the course of inter-State trade or commerce within the meaning of section 3 of the Central Sales Tax Act, 1956, (Central Act 74 of 1956);

(ii) brings any goods in the State of Goa or to whom any goods are dispatched from any place outside the State;

(iii) makes consignment sale/stock transfers;

(iv) makes sales in the course of import of goods into or export of the goods out of the territory of India, within the meaning of section 5 of the said Central Sales Tax Act, 1956;

(v) receives any goods for sale on consignment basis or effects sales on behalf of the principal;

(vi) manufactures any goods for sale other than covered under entries (3), (4) and (6) of Schedule 'E' to the Act;

(vii) is a non-resident dealer; and

(viii) exceeds the limit of turnover, specified in column 3 of Schedule 'E' to the Act at any time during the year.

(2A) The dealer shall be eligible for composition of tax under entry (5) of Schedule 'E' to the Act, subject to the conditions that,-

(a) the agreements which are entered into on or after the 1st day of November, 2015 shall be covered under the composition scheme;

(b) the dealer shall make payment of the amount of composition of tax for the return period in which the agreement is entered into and include the amounts stipulated as payable in the respective tax periods as per agreement as turnover of sales in the said return;

(c) the dealer shall not be entitled to change the method of computation of tax liability in respect of contract for which he has opted for the composition scheme;

(d) the dealer shall not procure the goods from outside the State under sub-section (4) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956);

(e) the dealer shall not issue tax invoice.

(2B) The dealer covered by entry against serial number (5) of Schedule 'E' to the Act, if also carries on other business, may opt for separate composition of tax in respect of the business covered by entry against serial number (5) of said Schedule 'E'.

(3) (i) The Appropriate Assessing Authority upon scrutiny of application received from the dealer under sub-rule (1) is satisfied that it is in order shall grant him the certificate in Form VAT XIV, which shall be displayed at the place of business at a conspicuous place.

(ii) The dealer to whom such registration certificate is granted shall display the following message at least at two prominent and visible places at his place of business with minimum letter size of not less than 10 cms., namely:-

"COMPOSITION DEALER HENCE NOT AUTHORISED TO COLLECT VALUE ADDED TAX (VAT)"

(4) The permission so granted shall be valid initially for a period of one year and thereafter be renewed every year upon application in that behalf from the concerned dealer alongwith the declaration as regards to his turnover during the immediate preceding year. The application for renewal of the certificate shall be made within a period of 30 days from the date of expiry of the said certificate.

Provided that the Appropriate Assessing Authority may entertain an application for renewal of certificate of composition of tax beyond said thirty days but not later than sixty days from the date of expiry of the said certificate, on payment of late fee of Rs. 50/- per day of delay or a sum of Rs. 1000/-, whichever is higher.

Provided further that upon an application made by the dealer to the Commissioner, the Commissioner may, by order, forreason to be recorded in writing direct the Appropriate Assessing Authority to entertain the application for renewal of the said certificate, made beyond sixty days, but within one hundredand fiftydays from the date of expiry of said certificate, on payment of late fee of Rs. 100/- per day of delay beyond 60 days, or a sum of Rs. 5000/-, whichever is higher in addition to the late fee for the period specified in first proviso above. The dealer applying to the Commissioner for renewal of certificate of Composition of tax shall make an application on plain paper and submit the copy of the e-challan in proof of payment of late fee, the certificate issued to him by the Appropriate Assessing Authority and court fee stamps of the value specified in Rule 46 towards processing fees.

The dealer applying for renewal of his certificate of composition of tax shall submit the certificate issued to him to the Appropriate Assessing Authority alongwith the application.

(5) A dealer to whom a certificate of composition of tax in Form VAT - XIV has been granted if found covered any time during the year under any of the contingencies as stated in sub-rule(2) above, such certificate shall stand withdrawn from the date of such contingency.

The input tax credit on the stock held by the dealer on the date of such withdrawal shall be allowed to him in accordance with the provisions of sub-rule(1) of rule 7 of these rules.

(6) The payment of the amount of composition tax at the rate specified in Schedule 'E' to the Act shall be made by the respective dealer every month by e-challan, within 25 days from the expiry of each month to which the payment relates.

(7) The dealer to whom the composition benefit has been granted shall file return of his sales for every quarter in Form VATV online, through electronic system, by using a system code availed from the Appropriate Assessing Authority, within 30 days from the end of the quarter alongwith copies of e-challans acknowledging receipt of tax paid. In case the tax payment has been effected through cyber treasury so notified by the Government or any other electronic system (e-payment) of payment available within the bank as notified by the Government, then such payment shall be listed in the returns as per the acknowledgements received for every e-payment:

Provided that the dealer to whom composition benefit has been granted and whose total turnover does not exceed rupees twenty-five lakhs during the previous year, shall file return of his sales for the year in Form VAT IV online, through electronic system, by using a system code availed from the Appropriate Assessing Authority, within thirty days from the end of the year to which the return relates alongwith copies of e-challans acknowledging the receipt of tax and the return so filed shall be deemed as filed in accordance with the provisions of the Act.

Provided further that the dealer, other than the one dealing in alcoholic liquor for human consumption, to whom composition benefit has been granted and whose total turnover does not exceed rupees twenty-five lakhs during the financial year immediately before commencement of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017) shall file a single return of his sales for a period commencing from the first day of the financial year upto the day immediately before commencement of the said Act, 2017, in Form VAT IV online, through electronic system, by using a system code availed from the Appropriate Assessing Authority, within thirty days from the last day of the period to which the such return relates, alongwith copies of e-challans acknowledging the receipt of tax. The return so filed shall be deemed as the return filed in accordance with the provisions of the Act.