Staff Reporter

Panaji

Small bar and tavern owners, whose annual turnover does not exceed `10 lakh, have been given a deadline until March 15 to register as ‘composition taxpayers’ and pay a lower tax of 2%.

Pushing for ease in compliance, the office of the commissioner of state taxes has given small bar and tavern owners, which purchase goods (liquor) for resale only from registered dealers within the state and who are within the said turnover limit, the option of being taxed under the composition scheme under the GVAT Act, 2005.

For availing composition, the establishments have been asked to apply in Form VAT XIII to the concerned ward office. The rate of the composition tax is 2% of the total turnover of the said establishment.

The composition tax will have to be paid monthly by e-challan by the 25th day of the month. The return by composition dealer in Form VAT IV is required to be filed yearly, says the order issued by commissioner of state tax Vishant SN Gaunekar.

The department of state taxes has appealed to all eligible dealers to avail the benefit of composition scheme by timely filing of application to the concerned ward office.

In case of any difficulty, the dealers can approach helpdesks set up at each of eight ward offices in the state, says the circular.

On February 14, the state government amended Schedule E of the Goa Value Added Tax Act, 2005, introducing a new class of dealers, viz. bar or tavern which purchases all goods for resale only from registered dealers within the state and whose annual turnover is less than `10 lakh.

Subsequently the new class of dealers has been placed in the composition tax category.

The composition scheme offers businesses the benefits of reduced paperwork and compliance as well as lower tax liability. For instance, normal taxpayers have to submit three monthly GST returns (GST-1, GST-2, and GST-3) and one annual return (GST) while composition taxpayers have to file one return annually.