Body Trade Circular No. CCT/26-2/2023-24/3975 (GVAT No. 05 of 2023-24) Dated 19th February, 2024.

Read:- Notification No. 4/1/2024-Fin (R&C)/5039 dated 14-02-2024 published in Official Gazette, Extraordinary No. 2, Series I No. 45 dated 14-02-2024.

Sub.:- Option of composition under GVAT Act, 2005 made available for class of dealers doing business of Bar/Tavern whose annual turnover does not exceed rupees ten lakhs.

Attention of Trade & Industry is invited to the above read Notification issued by the Government inserting entry No. 02 in the Schedule 'E' appended to the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005).

Vide the said Notification, a new class of dealers i.e. Bar or Tavern which purchases all goods for resale only from registered dealers within the State of Goa and whose annual turnover does not exceed rupees ten lakhs has been added w.e.f. 14-02-2024 for availing composition by filing application in Form VAT XIII to concerned ward office. The rate of composition for such class of dealers is 2% of the total turnover of the dealer.

All the terms and conditions as laid down under Section 7 of the Goa Value Added Tax Act, 2005 and

Rule 6 of the Goa Value Added Tax Rules, 2005 shall be applicable and binding for availing composition.

The above mentioned Notification has come into force from 14th February, 2024 and as per Rule 6 of GVAT Rules, 2005 any existing eligible dealer may apply to Appropriate Assessing Authority (STO/ /ASTO) of concerned ward where dealer is registered in Form VAT XIII within 30 days from 14-02-2024 i.e. the date of Notification including a new class of dealers issued u/s 5(4) of GVAT Act.

Therefore, if any existing dealer (Bar/Tavern) is desirous of opting for composition, then application is required to be submitted on or before 15-03-2024 to respective ward office where dealer is registered.

The amount of composition tax @ 2% of total turnover for the concerned month is required to be paid monthly by e-challan by 25th day of succeeding month. The return by composition dealer in Form VAT IV will be required to be filed yearly by the above said category i.e. Bar or Tavern whose annual turnover does not exceed rupees ten lakhs.

It is appealed to all eligible dealers to avail the benefit of composition scheme by timely filing application to the concerned ward office.

In case of any difficulty, the dealers may approach helpdesks setup at each of 8 ward offices in Goa. This Trade Circular is intended only for facilitation of the stake holders and not meant for interpreting any legal provisions.

The Commissioner of State Tax,

Vishant S. N. Gaunekar.