The Goa Value Added Tax Act was mainly responsible for the implementation of Value Added Tax in the country. The VAT has now been replaced with the uniform tax regime - known as the Goods and Services Tax(GST), established by the Narendra Modi Government!
Goa, the tourist capital of India has a long history of trade, being one of the biggest trade centres of the country for centuries. Today, the state government imposes VAT on goods and products in the state, aiming to increase revenue and streamline trade activities. The Goa Value Added Tax Act of 2005 forms the basis for the Commercial Tax Department to levy and collect VAT in the state. This Act came into existence in 2005 and has been suitably amended to keep pace with changing trends.
Goa VAT Rates
VAT rates in Goa are determined by the Goa Value Added Tax Act, which has provisions for different rates for different products. Multiple Schedules have been created, with each one having specific products and unique VAT rates. Precious stones, gold and silver in various forms are included in Schedule A and attract VAT at the rate of 1%.
Items under Schedule B are charged 5% VAT and include automatic agricultural implements, acids, bricks, biscuits, combs, coffee, cheese, cotton, locally manufactured handicrafts, etc. A total of 160 articles are enclosed within this schedule, all of them attracting the same VAT.
Schedule C contains items like aviation fuel, foreign and Indian liquor, diesel, lotteries, petrol, electronics like LCDs, ACs, etc. Products under this list attract different VAT, ranging from 1% to 22%, with the highest imposed on alcohol.
Schedule D contains a list of all the products which are considered essential and thereby exempted from VAT. These include manually operated agricultural implements, bread, milk, fresh fruits, ginger, garlic, rice, meat, etc. A total of 70 such products find a mention in this list.
Goods which do not find a mention under the aforementioned schedules attract VAT at the rate of 12.5%.
Goa VAT Registration
All dealers engaging in trade of items which fall under the ambit of VAT need to register themselves before they carry such trade. The VAT registration process is simple and straightforward, with people required to fill up the VAT Registration form, i.e. Form VAT-I. One should provide personal details like name, date of birth, nature of business, amount paid, etc. With respect to the business, details like address, make up of business (partners, directors, etc.), PAN details, turnover, date of incorporation, TIN and account details should be provided. This form will be scrutinised by relevant authorities and a registration certificate will be given if all details match the expectation.
Goa VAT Forms
The Goa Value Added Tax Act has a provision for various forms, each intended to perform a particular task. These forms can be used by individuals based on their requirement, with an option to download them from the official website of the Commercial Tax Department of Goa. There are over 25 different forms for people to choose from, with the most important ones being VAT-I which is for registration, VAT-VII for TDS, VAT-XX for VAT declaration and VAT-XXXI for raising any objections.
Goa VAT Return e-Filing and Payment
In a bid to streamline and fast-track implementation and collection of VAT, the Department of Commercial Taxes has provided provisions for e-filing and payment of VAT. Individuals who wish to utilise these services can do so by logging on to the official website of the department of commercial taxes and navigate to the E-services section. Here, they will have to register themselves post which they can utilise the requisite forms to e-file their VAT.
Payment can also be made through the internet, and a registered user will have to provide his/her login information to proceed. Once successfully logged in, one will need to enter certain basic information including period for which payment is being made, PAN details, bank account details, etc. and choose to pay the amount. An e-challan number will be required to initiate payment proceedings and on successful payment a payment receipt will be generated.
Goa VAT FAQ's
Are there any advantages of VAT?
Yes, there are certain advantages of VAT, which include lesser rates, self-assessment by dealers, distribution of burden across the supply chain, no additional tax, etc.
What are basic requirements to be eligible for VAT registration?
Dealers need to register themselves based on their turnover for a financial year. Non-resident dealers with a turnover of Rs 10,000, manufacturers with a turnover of Rs 1 lakh and any other dealers with a turnover of Rs 5 lakh and over should register.
What is the registration fee one should pay to register for VAT?
The registration fee depends on the turnover of a particular business, with the amount ranging between Rs 1,000 for turnovers under Rs 5 lakh to Rs 10,000 for turnovers over Rs 1 crore.
How often should one file his/her VAT returns?
Eligible individuals should file their returns every quarter using Form VAT-III.
Is there a time limit to pay VAT?
Yes, VAT should be paid within 30 days of a quarter getting over.