The Goa Value Added Tax Act, 2005
Goa · state statute
Open in Lexace · Ask the AI about this act---1--- GOVERNMENT OF GOA Department of Law & Judiciary Legal Affairs Division — Notification 7/6/2005-LA The Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005), which has been passed by the Legislative Assembly of Goa on 13-01-2005 and assented to by the President of India on 31-03-2005, is hereby published for general information of the public. S. G. Marathe, Under Secretary (Drafting). Panaji, 31st March, 2005. The Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) [31-3-2005] AN ACT to provide for and consolidate the law relating to the levy and collection of Value Added Tax on sales of goods in the State of Goa. BE it enacted by the Legislative Assembly of Goa, in the Fifty-Sixth year of Republic of India as follows: 1. Short title, extent and commencement.— (1) This Act may be called the Goa Value Added Tax Act, 2005. 2) It extends to the whole of the State of Goa. 3) It shall come into force on such date as the Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference under any such provision to the appointed date, shall be construed as a reference to date of enforcement of that provision. 2. Definition:— In this Act, unless the context otherwise requires,— (a) 1[***] (b) 2[***] (c) “appointed day” means the day on which this Act shall come into force; (d) “business” includes,— (i) any trade, commerce or manufacture; (ii) any adventure or concern in the nature of trade, commerce or manufacture; (iii) any transaction in connection with, or incidental to or ancillary to trade, commerce, manufacture, adventure or concern; (iv) any transaction in connection with, or incidental to or ancillary to the commencement or closure of such business; ---2--- (v) any occasional transaction in the nature of trade, commerce, manufacture, adventure or concern whether or not there is volume, frequency, continuity or regularity of such transaction, whether or not trade, commerce, manufacture, a dventure, concern or transaction is effected with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure, concern or transaction. Explanation. — For the purpose of this clause, (i) the ac tivity of raising of man -made forest or rearing of seedlings or plants shall be deemed to be business. (ii) any transaction of sale of capital goods pertaining to such trade, commerce, manufacture, adventure, concern or transaction shall be deemed to be a trans action comprised in business. (iii) sales of any goods, the proceeds of which are credited to the business shall be deemed to be transactions comprised in business; (e) “business premises” means any place where a dealer or a transporter sells, transports, books or delivers goods and includes any place where stores, processes, produces or manufactures goods or keeps books of accounts; (f) “capital goods” means plant and machinery (including spares and components) and equipment used in or in relation to manufacture or pro cessing of goods for sale or any other goods which is notified by the Government and used in furtherence of any business excluding such civil structures as may be prescribed; (g) “casual trader” means a dealer who, whether as principal, agent or in any other capacity, has occasional or seasonal transaction involving the selling, supplying or distribution of goods or conducting any exhibition -cum-sale in Goa whether for cash or for deferred payment, commission, remuneration or other valuable consideration; (h) “Company” means a company as defined in section 3 of the Companies Act, 1956 (Central Act 1 of 1956) and includes a body corporate or corporation within the meaning of clause (7) of section (2) or Foreign Company referred to in section 591 of that Act; (i) “Commissioner” means the person appointed to be the 3[Commissioner of State Tax] 4[ ] for the purposes of this Act; (j) 5[***] (k) “dealer” means any person who carries on the business of buying, selling, supplying or distributing goods, executing works contract, deliver ing any goods on hire purchase or any system of payment by instalments, transferring the right to use any goods or supplying by way of or as part of any service, 6[any goods directly or other wise, or organizing or conducting exhibition or any event or pro gramme either for sale of goods or for promoting goods for sale,] whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration and includes; (a) a casual trader; (b) a commission agent, a broker or a del -credere agent or an auctioneer or any other mercantile agent, by whatever name called; (c) a non-resident dealer or an agent of a non-resident dealer, or a local branch of a firm or company or association or body of persons whether incorporated or not, situated outside the State; ---3--- (d) a person who, whether in the course of business or not,— (i) sells goods produced by him by manufacture, agriculture, horticulture or otherwise; or (ii) transfers any goods, including controlled goods whether in pursuance of a contract or not, for cas h or for deferred payment or for other valuable consideration; (iii) supplies, by way of or as part of any service or in any other manner whatsoever, goods, being food or any other articles for human consumption or any drink (whether or not intoxicating), where such supply or service is for cash, deferred payment or other valuable consideration; Explanation:— (a) an agriculturist who sells exclusively agricultural produce grown on land cultivated by him personally shall not be deemed to be a dealer within the meaning of this clause; (b) government or departments of Union Governments or Other State Governments and Union territories which whether or not in the course of business, sells, supplies or distributes, goods directly or otherwise, for cash or for deferred payment or for commission, remuneration or other valuable consideration, shall, in relation to any sale, supply or distribution of surplus, unserviceable or old stores or materials or waste products or obsolete or discarded machinery or parts or accessories thereof, be deemed to be a dealer for the purpose of this Act; (c) each of the following persons and bodies who dispose of any goods including goods as unclaimed or confiscated or as unserviceable or as scrap, surplus, old, obsolete or discarded material or waste pr oducts whether by auction or otherwise, directly or through an agent for cash or for deferred payment, or for any other valuable consideration, shall notwithstanding anything contained in clause (d) or any other provision of this Act, be deemed to be a dea ler, to the extent of such disposals, namely:— (i) Port Trust; (ii) Municipal Corporation/Council, and other Local authorities; (iii) Railway Administration as defined under the Railway Act, 1989 (Central Act 24 of 1989); (iv) Shipping Transport and Construction Companies; (v) Air Transport companies and Airlines; (vi) Transporters, holding permit for transport vehicles granted under the Motor Vehicles Act, 1988 (Central Act 59 of 1988) which are used or adopted to be used for hire; (vii) Customs and Central Excise Department of Government of India administering the Customs Act, 1962 (Central Act 52 of 1962) and the Central Excise Tariff Act, 1985 (Central Act 5 of 1986); (viii) Insurance and Financial Corporations or companies and Banks included in the Second Schedule to the Reserve Bank of India Act 1934 (Act 2 of 1934); (ix) Advertising agencies; (x) Any other corporation, company, body or authority owned or set up by, or subject to administrative control of the Government; ---4--- (xi) Income Tax Department of Government of India administering the Income Tax Act, 1961 (Central Act 43 of 1961); (xii) Any other body as may be notified by the Government from time to time. (l) 7[***] (m) “director” in relation to a company, include any person occupying the position of director by whatever name called; (n) “document” includes written or printed records of any sort, title deeds and data stored electronically in whatever forms; (o) “earlier law” means the Goa Sales Tax Act, 1964 (Act 4 of 1964) as amended from time to time, and includes enactments which have validated anything done or omitted to be done under any of the above mentioned laws; (p) 8[“goods” means— (i) petroleum crude; (ii) high speed diesel; (iii) motor spirit (commonly known as petrol); (iv) natural gas; (v) aviation turbine fuel; and (vi) alcoholic liquor for human consumption].; (q) “importer” means a person who brings any goods into the State or to whom any goods are despatched from any place outside the State; (r) “Input-tax” means tax charged under this Act by a registered dealer to another registered dealer on purchases of goods in the course of business; (s) “manufacture” includes any activity that brings out a change in an article or articles as a result of some process, treatment, labour and results in transformation into a new and different article so understood in commercial parlance having a distinct name, character, use and includes extracting any goods but does not include such activity of manufacture as may be notified; (t) “non-resident dealer” means a dealer who has no place of business in the State of Goa but who sells or delivers goods in the State of Goa for sale therein; (u) “notification” means any notification issued under the Act; (v) “Output tax” in relation to any registered dealer, means the tax charged in respect of sale or supply of goods made by that dealer; (w) “person” includes an individual, any Government, any company or society or club or association or body of individuals whether incorporated or not, and also a Hindu undivided family, a firm and a local authority and every artificial juridical person not falling within any of the preceding descriptions; (x) “prescribed” means prescribed by the rules made under this Act; (y) “raw materials” means goods used as ingredients in the manufacture of other goods and includes processing materials, consumable stores and material used in the packing of the goods so manufactured; (z) “registered dealer” means a dealer registered under this Act; (aa) “resale” means a sale of purchased goods— ---5--- (i) in the same form in which they were purchased; or (ii) without doing anything to them, which amounts to, or results in, a manufacture, and the word “resell” shall be construed accordingly; (ab) “rules” means rules made under this Act; (ac) “sale” with all its grammatical variations and cognate expressions means every transfer of the property in goods (other than by way of a mortgage, hypothecation, charge or pledge) by one person to another in the course of trade or business for cash or for deferred payment or other valuable consideration, and includes— (a) transfer, otherwise than in pursuance of a contract, of property, in goods for cash, deferred payment or other valuable consideration; 9[(b) transfer of property in goods (whether as goods or in some other form) involved in execution of a works contract including an agreement for carrying out the work of building, construction, manufacture, processing, fabrication, erection, installation, fitting, improvement, modification, repair or commissioning of any movable or immovable property, for cash, deferred payment or other valuable consideration;] (c) delivery of any goods on hire purchase or any other system of payment by instalments; (d) transfer of the right to use any goods for any purpose (whether or not for a specified period), for cash, deferred payment or any other valuable consideration; (e) a supply, by way of or as part of any s ervice or in any other manner whatsoever, of goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration; Explanation:— A sale shall be deemed to take place in Goa if the goods are within Goa,— (i) in the case of specific or ascertained goods, at the time the contract of sale made; and (ii) in the case of unascertained or future goods, at the time of their appropriation to the contract of sale; by the seller, whether the assent of the buyer to such appropriation is prior or subsequent to the appropriation: Provided that where there is a single contract of sale in respect of goods situated in Goa as well as in places outside Goa, provisions of this Explanation shall apply as if there were a separate contract of sale in respect of the goods situated in Goa. (ad) “sale price” means the amount of valuable consideration received or receivable by a dealer for the sale of any goods less any sum allowed as cash discount, according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before delivery thereof, excise duty, special excise duty or any other duty or taxes except the tax imposed under this Act; 10[Provided that in case of transfer of property in goods (whether as goods or in some other from) involved in the execution of a works contract, the sale price of such goods shall be de termined in the prescribed manner by making such deductions from the total consideration for the works contract as may be prescribed and such price shall be deemed to be the sale price for the purpose of this clause.] ---6--- (ae) “Schedule” means the Schedule appended to this Act; (af) “State” means the State of Goa; (ag) “Government” means the Government of Goa; (ah) “tax” means a tax, payable under this Act; (ai) “taxable goods” means goods other than those specified in Schedule D; (aj) “tax period” means such period as may be prescribed as tax period; (ak) “Tribunal” means the Tribunal constituted under section 14 of this Act; (al) “taxable turnover” means the turnover on which a dealer shall be liable to pay tax as determined after making such deductions fro m his total turnover and in such manner as may be prescribed, but shall not include the turnover of sale in the course of interstate trade or commerce or in the course of export of the goods out of the territory of India or in the course of import of the g oods into the territory of India and the value of goods transferred or dispatched outside the State otherwise than by way of sale; (am) “turnover” means the aggregate amount of sale price for which goods are sold or supplied or distributed by a dealer, either directly or through another, whether on own account or on account of others, whether for cash or for deferred payment, or other valuable consideration; (an) “taxable sale” means sale which is taxable under the provisions of this Act; (ao) “taxable p erson” means every person who is registered or is liable to be registered and liable to pay tax under this Act; (ap) “vehicle” includes every wheeled conveyance used for the carriage of goods solely or in addition to passengers; (aq) “Works contract” shall include any agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, manufacturing, processing, fabrication, erection, installation, fitting out improvement, modification, repair or commissioning of any movable or immovable property; (ar) “year” means, the financial year or from the date of commencement of validity of registration certificate, as the case may be; (as) “Quarter” means the period of three months ending on the 30th June, 30th September, 31st December or 31st March. CHAPTER II 3. Incidence of Tax. — 11[(1) Every dealer who is engaged in business of sale of goods shall be liable to pay tax under this Act on his turnover of sales, until such liability ceases under sub-section (3): Provided th at a dealer who was engaged in business of sale of goods before commencement of the Goa Value Added Tax (Second Amendment) Act, 2023 but was not liable to pay tax under section 3 and who has not obtained certificate of registration under subsection (3) of section 18, before such commencement, shall be liable to pay tax from the date of commencement of the Goa Value Added Tax (Second Amendment) Act, 2023 and he shall obtain a certificate of registration under section 18 within a period of 12[192 days] from t he date of commencement of the Goa Value Added Tax (Second Amendment) Act, 2023] 13[(2) Every dealer who engages in a business of sale of goods after commencement of the Goa Value Added Tax (Second Amendment) Act, 2023 shall be liable to pay tax ---7--- under this Act with effect from the date of his engagement in such business till his liability ceases under sub-section (3)] (3) Every dealer who has become liable to pay tax under this Act, shall continue to be so liable until his registration is duly cancelled; and upon such cancellation his liability to pay tax, shall cease other than tax, already levied or leviable: 14[***] 15[***] (4) Notwithstanding anything contained in any contract or any law for the time being in force, but subject to the provisions of this Act, any person covered by sub-clauses (a), (b) and (c) of clause (k) of section 2 shall be liable to pay tax under this Act, whether or not the principal is a dealer and whether or not such principal is liable to pay tax under this section and whether or not the principals are disclosed. (5) Liability of dealers registered under the Central Sales Tax Act, 1956 (Central Act 74 of 1956)— Every dealer shall, notwithstanding that he is not liable to pay tax under any of sub-sections (1) to (3) of section 3, be liable to p ay tax under this Act so long as he is registered under the Central Sales Tax Act, 1956 (Central Act 74 of 1956), on all sales effected by him or on his behalf within Goa, on or after the date of his liability or the date of his registration, whichever is earlier, under the Central Sales Tax Act, 1956 (Central Act 74 of 1956): Provided that no tax shall be payable in respect of sales in any period prior to commencement of liability under this Act. (6) Liability of exporters and dealers effecting stock transfers outside the State: — Every dealer exporting any goods outside India or effecting stock transfers to any States and Union territories within India, shall, notwithstanding that he is not liable to pay tax under any of sub-sections (1) to (3) of section 3, be liable to pay tax under this Act on all taxable sales effected within the State. 16[(9) Special liability of person organizing or conducting exhibition or event or programme.— Any person organizing or conducting exhibition or event or programme either for sale of goods or for promoting goods for sale, by providing stalls or space to other persons or dealers under the banner of specific name or otherwise or under a common roof or otherwise shall be liable to pay tax on all taxable sales effected by all such persons or dealers participating in such exhibition or event or programme other than the dealers who are already registered under this Act and self help groups participating in such exhibition or event or programme: Provided that no person shall be allowe d to carry on such exhibition or event or programme without obtaining prior written permission of the Commissioner as per the procedure prescribed and payment in advance of estimated tax. The advance estimated tax shall be adjusted towards the output tax l iability payable by the person organizing or conducting exhibition or event or programme so conducted: Provided further that the owner of the property where the exhibition or event or programme is to be held, shall be jointly and severally liable to pay tax that may become due on sale of goods made in such exhibition or event or programme if he fails to inform the Commissioner about renting/leasing/letting out of his property, whether residential or commercial, or any open space, alongwith the details of dealer or person conducting the exhibition or event or programme as well as the conditions subject to which the said property is rented/leased/let out and any other relevant information. ---8--- Explanation:— (1) Self Help Groups means Self Help Groups registered with the Rural Development Agency or with the Registrar of Co -operative Society or any other Government Department as Self Help Groups within the State of Goa and are selling goods manufactured by themselves. (2) For the purpose of calculation of tax to be paid in advance, the stalls occupied by dealers holding valid registration under this Act, and the self help groups shall not be included while making such calculation, provided prior permission of the Commissioner is obtained by them for their participation in s uch exhibitions, event, or programme in a prescribed manner.] 4. Taxes Payable by a Dealer or a Person. — Subject to the provisions of this Act and of any rules or notifications, there shall be paid by every dealer or, as the case may be, every person who is l iable to pay tax under this Act, the tax or taxes leviable in accordance with the provisions of this Act. 5. Levy of Value Added Tax on Goods specified in the Schedule. — (1) Levy of Value Added Tax on Goods specified in the Schedule (Output Tax).- There shall be levied a Value Added Tax (output tax) on the turnover of sales of goods at rates hereinafter provided: (a) In respect of goods specified in Schedule ‘A’, @ 1 paisa in a rupee. (b) In respect of goods specified in Schedule ‘B’, @ 4 paise in a rupee. (c) In respect of goods specified in Schedule ‘C’, at the rates shown against each of the entry. (d) In respect of goods specified in Schedule ‘D’, exempt from tax. (e) In the case of any other goods, at the rate of 121/2 paise in a rupee. (2) Zero Rate for Exports. — (a) When calcul ating the output tax in relation to any dealer, sale of goods in course of export outside the territory of India shall be deemed as taxable at the zero rate. (b) The Government may, by notification published in the Official Gazette and subject to such term s and conditions as may be specified in this behalf, extend zero rate of tax for transactions effected from 17[Domestic Tariff Area] to Special Economic Zone or for 100% export oriented units or Software Technology Park units or Electronics Hardware Technology Park units or for any such manufacturing or processing units as it may deem fit. (3) Rate of Tax on Packing Materials. — Where any goods are sold and such goods are packed in any materials, the tax shall be payable on the sales of such packing material, whether such materials are separately charged for or not, at the same rate of tax, if any, at which tax is payable on the sales of goods so packed. (4) Amendment to the Schedule. — (i) The Government may, by notification in the Official Gazette,— (a) reduce any rate of tax, (b) enhance any rate of tax, and may, by like notification, 18[add to, or omit from, or otherwise amend any entry of, the Schedule] and thereupon the Schedule shall be deemed to have been amended accordingly. ---9--- (ii) Any notification issued under clause (i) shall take effect prospectively, either from the date of publication thereof in the Official Gazette or from such later date as may be mentioned therein. (iii) The provisions contained in sub -section (4) of section 83 regarding rules made by the Government s hall apply mutatis mutandis to any notification issued under clause (i), as they apply to rules made by the Government. 19[(5) Determination of rate of tax on Industrial Inputs. — The Commissioner may, on an application made by a registered dealer who is a manufacturer, by way of Notification in the Official Gazette, declare certain types or class of goods as industrial inputs for that dealer, in order to avail concessional rate of tax.] 6. Reimbursement and Exemption of Tax. — (1) Tax collected under this Act on purchases made by specialized agencies of United Nations Organizations or Diplomatic Mission/Consulates or Embassies of any other country and their diplomats shall be reimbursed in such manner and subject to such conditions as may be prescribed. (2) In respect of any goods not entitled for input tax credit and covered by Schedule ‘C’ appended hereto purchased within the State on payment of tax under this Act, the Government may subject to such conditions as it may impose , 20[by Notification in the Official Gazette, to take effect, either prospectively or retrospectively, from the date as may be mentioned therein], exempt subsequent sales thereof from payment of output tax for such period as may be notified. 21[(3) In resp ect of any goods other than capital goods and such other goods as specified in Schedule ‘G’ appended to this Act, or in sub-section (2) of section 9, used in the manufacturing or processing of finished products dispatched other than by way of sales, the Go vernment may, notwithstanding anything contained in section 9, by notification, allow input tax credit in excess of the rate of tax specified in sub -section (1) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) on such goods purchased within the State subject to such terms and conditions as may be specified in the notification.] 22[(4) Notwithstanding anything contained in sub -section (2), the Government may, in respect of any goods covered by Schedule “G” appended to this Act, by notification, exempt the sales inter -se dealers thereof, from levy and payment of output tax, when effected within the State, on such conditions as may be specified therein, and any such sales shall not be treated as “subsequent sale” as provided, in sub-section (2).] 23[6A. Reimbursement of tax paid by tourists on purchases and by airlines operating on domestic sector on Aviation Turbine Fuel. — (1) The Government may, by notification in the Official Gazette, frame a scheme for refund of tax paid by tourist s holding Indian or foreign passport or both on purchases made by them within the State. (2) The Government may, by notification in the Official Gazette, frame a scheme for refund of tax paid by airlines operating on domestic sector on purchase of aviation turbine fuel.] 7. Composition of Tax.— (1) Subject to such conditions and in such circumstances as may be prescribed, if any registered dealer, of the class specified in Schedule E, whose total turnover in the previous year does not exceed the limit specified in the said Schedule and who is liable to pay tax under 24[sub-section (1), (2) and (3) of] section 3, so elects, the Commissioner may accept towards composition of tax, in lieu of the net amount of tax payable by him under this Act, during the y ear, an amount at the rate shown against respective class of dealers in the said Schedule calculated on total turnover, either in full or in instalments, as may be prescribed. ---10--- 25[Provided that any dealer of the class specified in Schedule ‘E’ who is liab le to pay tax under sub -sections (2) and (3) of section 3, may, at any time during the year, by making self declaration that his turnover of sales during the said year will not exceed the limit specified in the said Schedule ‘E’ apply for composition of tax under this section.] 26[(1A) In the event of transfer of business under any of the circumstances as provided under section 19, the total turnover for the purposes of sub -section (1) shall be the aggregate of the turnover of the transferor as well as the transferee during the year and the prescribed conditions, if any, shall be applicable with reference to such aggregate of the turnover.] (2) Any dealer eligible for composition of tax under sub-section (1) shall not:— (a) be permitted to claim any input tax credit on purchases and on stock held on the appointed day or on the day from which he is held liable to pay tax under this Act or on the day on which his Registration Certificate is made valid, as the case may be; (b) charge any tax under this Act in his sales bill or sales invoice in respect of sales made by him, (c) issue tax invoice to any dealer who has purchased the goods from him. N. B.:— Total turnover for the purposes of this section will include aggregate sales of taxable and non-taxable goods. 27[(3) Any dealer who is eligible for composition of tax under sub -section (1), fails to file return within the time prescribed, for the period for which composition is granted, he shall not be eligible for composition of tax for next one year: Provided that the Commissioner, upon an application made by such dealer to continue in the composition scheme, shall first determine the dealer’s liability for the preceding year within a period of 30 days from the date of such application. After payment of dues as determined by the Commissioner, the Commissioner may consider the said application and upon imposing a penalty of an amount equal to 10% of the tax so determined, by order in writing, permit the dealer to avail composition of tax.] 28[7. Composition of Tax— (1) Subject to such conditions and in such circumstances as may be prescribed, if any registered dealer, of the class specified in Schedule E, whose total turnover in the previous year does not exceed the limit specified in the said Schedule and who is liable to pay tax under sub -section (1), (2) and (3) of Section 3, so elects, the Commissioner may accept towards composition of tax, in lieu of the net amount of tax payable by him under this Act, an amount at the rate shown against respective class of dealers in the said Schedule calculated on total turnover, either in full or in instalments, as may be prescribed: Provided that any dealer of the class specified in Schedule ‘E’ is liable to pay tax under sub- section (2) and (3) of Section 3, may, at any t ime during the year, by making self-declaration that his turnover of sales during the said year will not exceed the limit specified in the said Schedule ‘E’ apply for composition of tax under this section. (2) In the event of transfer of business under any of the circumstances as provided under Section 19, the total turnover for the purposes of sub -section (1) shall be the aggregate of the turnover of the transferor as well as the transferee during the year and the prescribed conditions, if any, shall be applic able with reference to such aggregate of the turnover. ---11--- (3) Any dealer eligible for composition of tax under sub-section (1) shall not:— (a) be permitted to claim any input tax credit on purchases and on stock held on the appointed day or on the day from which he i s held liable to pay tax under this Act or on the day on which his Registration Certificate is made valid, as the case may be; (b) charge any tax under this Act in his sales bill or sales invoice in respect of sales made by him; (c) issue tax invoice to any dealer who has purchased the goods from him. (4) The option of composition availed of by a registered dealer under sub -section (1) shall continue to be in force till the time dealer voluntarily opt out of composition scheme by making an application in writing and submitting the same to the registration authority mentioning the date from which the dealer voluntarily opts out of composition. The date of opting out of composition scheme voluntarily shall be the date on or after submission of such written application. (5) The option of composition availed of by a registered dealer under sub -section (1) shall be automatically invalid with effect from the date from which the dealer ceases to be eligible to continue under the composition scheme due to his aggregate turnover during the financial year exceeding the limit specified under sub -section (1) or for violating any other eligibility conditions to continue under composition scheme. (6) In case of dealer opting for composition for more than one class of business from those specified in schedule E, the turnover limit as specified in schedule E for each of the class of business shall be separately applicable for each class of business and the dealer shall be liable to maintain separate clear and legible accounts in respect of tu rnover of each such class of business. (7) For the purposes of this section, the total turnover of a dealer shall be the turnover as defined under clause (am) of Section 2 of this Act and any turnover of goods under the ambit of the Goa Goods and Services Tax Act, 2017 (Goa Act No. 4 of 2017) shall not be taken into consideration while computing the total turnover. (8) A registered dealer shall not be eligible to opt for composition under this section unless such dealer opts for composition for all types of busines ses dealing with goods under this Act undertaken by him as one legal person in the State of Goa] 8. Net Tax of a Registered Dealer.— (1) Subject to provisions of section 9, the net tax payable by a registered dealer for a tax period shall be calculated accord ing to the following formula:— A – B, Where,— A = total of the tax payable in respect of taxable turnover made by the registered dealer during the tax period; and B = total input tax credit allowed to the registered dealer for the tax period. (2) Where the amount determined by the formula in sub -section (1) is a negative amount, the registered dealer may carry forward the amount to the next tax period as per provisions of section 10. ---12--- (3) Every registered dealer shall pay in full the net tax payable by him for th e tax period at the time that dealer is required to file his return as may be prescribed. 9. Input Tax Credit. — (1) Subject to such conditions and restrictions as may be prescribed Input Tax Credit either partially or wholly shall be allowed for the tax paid during the tax period in respect of goods including capital goods purchased and/or taken on hire or leased to him within Goa, other than those specified in Schedule ‘G’ and/or such other goods as may be notified from time to time by the Government, provide d, the goods purchased are for resale in Goa or for sale in course of Inter State Trade or in course of export outside the territory of India or used by him as raw materials/capital goods in the manufacture or processing of taxable goods in Goa or for sale by transfer of right to use. 29[Provided that when any goods purchased in the State are subsequently sold at lower price than the purchase price, the excess of input tax credit over output tax credit in respect of such goods shall be refunded only on prop er verification by the Assessing Authority, in the manner prescribed: Provided further that if the Assessing Authority has any doubt as to the genuineness of such claim, he shall refer to the Commissioner and the Commissioner shall decide the same by order in writing and after giving an opportunity of being heard to the dealer: Provided also that a dealer whose certificate of registration is suspended shall not be entitled to claim any input tax credit during the period of suspension of the certificate of registration: Provided also that a dealer who purchases goods from another dealer, whose certificate of registration is suspended, as notified in Official Gazette shall not be eligible for input tax credit on such purchases of goods made during the period o f suspension of the certificate of registration.] (2) No input tax credit under sub -section (1) shall be claimed or be allowed to a registered dealer:— (i) in respect of goods purchased on payment of tax if such goods are not sold because of theft or destruction for any reason; (ii) in respect of stock of goods remaining unsold at the time of closure of business; (iii) in respect of any taxable goods under the Act purchased by him from another registered dealer for resale but given away by way of free samples or gifts; (iv) 30[in respect of capital goods/industrial inputs and packing materials], covered under Schedule ‘B’ of the Act, if said goods are utilized for the purposes other than those covered in the prescribed declaration; (v) in respect of goods purchased from a dealer who ha s opted for composition of tax under sub-section (1) of section 7; (vi) 31[in respect of capital goods or capital assets ]:— (a) purchased or paid prior to appointed day; (b) capital expenditure incurred prior to the date of registration under this Act; (c) capital goods not connected with the business of the dealer; (d) capital goods used in the manufacture of goods or providing services which are not liable to tax under this Act; (e) capital goods used in generation of energy/power including captive power; ---13--- (f) motor cars, its accessories and spare parts. 32[(vii) in respect of taxable goods sold within the State or 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), exempted from payment of tax under any specific notification issued under this Act or under the said Central Sales Tax Act, 1956; 33[(viii) in respect of goods used in the manufacture or processing of finished goods dispatched other than by way of sales outside the State except in case of input tax credit claimed against entry tax paid under sub-section (6) of this section;] 34[(ix) in respect of purchase of motor vehicle including car, three wheeler and two wheeler under this Act or tax paid under the Goa Tax on Entry of Goods Ac t, 2000 (Act 14 of 2000) on import of such motor vehicle before grant of registration mark under the Motor Vehicles Act, 1988 (Central Act 58 of 1988 ), when such vehicle is resold as true value vehicle or otherwise by a registered dealer under this Act. (x) in respect of raw material used in the manufacture of read mixed concrete;] 35[(xi) in respect of naptha and furnace oil used either as raw material or fuel by chemical fertilizer industry.] 36[(xii) ice cream, alcoholic beverages including beer and wine and non -alcoholic beverages including packed juice, aerated water and soft drinks served in party, factory or industrial canteens, clubs, or served by catered, for consumption at any place other than hotel/restaurant; (xiii) condemned vehicles.] (3) If goods purchased are intended for use specified under sub -section (1) and are subsequently used fully or partly, for purposes other than those specified under the said sub-section, or loss of goods arising out of theft or destruction for any reason or the stock of goods remaining unsold at the time of closure of business, the input tax credit availed at the time of such purchase shall be reduced from the tax credit for the period during which the said utilization has taken place provided that if part of the goods purchased are utilized otherwise, the amount of reverse tax credit shall be proportionately calculated. (4) Input tax credit shall be allowed to the registered dealer, subject to restrictions of sub-section (2), in respect of tax charged to him by a regi stered seller on taxable sales of goods made to him for the purpose of the business within three months prior to the date of his registration provided that no input tax credit shall be allowed in respect of goods which have been sold or otherwise disposed of prior to the date of registration. (5) (a) where a registered dealer has availed of the input credit on any goods and the same goods are not used in the course of his business, input tax credit so availed becomes repayable in the tax period following the da te on which these goods were put to such other use; (b) where such goods were wholly or mainly used or are intended for use in sale of taxable goods prior to change of use, tax shall be calculated on the prevailing market value of such goods at the time of change of use. 37[(6) Any registered dealer who has paid entry tax under the Goa Tax on Entry of Goods Act, 2000 (Goa Act 14 of 2000), either on raw material or on capital goods, other than on goods covered by Schedule ‘G’ and/or sub-section (2) of this section, brought by him into the local area for use or consumption in the manufacture or processing of goods within the State, shall be entitled for input tax credit under sub-section (1) of this section.] 38[Provided that in respect of finished products dispatched by way other than sales, the ---14--- input tax credit on goods other than those covered by Schedule ‘G’ shall be to the extent it exceeds the rate specified under sub -section (1) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956).] (7) Balance unclaimed input tax credit of capital goods shall not be allowed in case of closure of business. (8) The registered dealer shall be liable for input tax credit on stock held on the appointed day, towards the tax paid under the earlier law subject to su ch conditions as may be prescribed. The period and the date from which such input tax credit is to be apportioned shall be as notified. (9) The deduction of input tax credit on capital goods under this section shall be allowed in two equal annual instalments after the close of the respective year as under: (i) in case of existing units, upon installation of such capital goods, and (ii) in case of new units, upon commencement of commercial production. 10. Input Tax Credit Exceeding Tax Liability. — (1) Subject to the provisions of sub-section (2), if the input tax credit of a registered dealer, determined under section 9 of this Act for a period exceeds the tax liability for that period, the excess credit shall be set off against any outstanding tax, penalty or interest under this Act or earlier law 39[***] or under the Central Sales Tax Act, 1956 ( Central Act 74 of 1956 )]. 40[(2) After adjustment under sub-section (1), the excess input tax credit of a registered dealer other than those covered under sub-section (3), proportionate to the closing stock at the end of financial year, shall be reversed and such amount shall be carried forward to the succeeding financial year as input tax credit corresponding to the opening stock.] 41[(2A) After adjustment under sub-section (1) and (2) the excess input tax credit of a registered dealer other than those covered under sub-section (3) shall lapse.] 42[(2B) Notwithstanding anything contained in sub -sections (2) and (2A) after adjustment under sub-section (1), the excess of input tax credit as on the 30th day of June, 2017, in case of a dealer,— (a) dealing in goods not covered under clause (p) of section 2, and (b) who has not applied for carry forward of unutilized/excess input tax credit by filing application under the provisions of section 140 of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017) and the rules made thereunder, shall be refunded in the prescribed manner and subject to the following conditions:— (i) dealer should have completed migration in accordance with section 139 of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017); (ii) he should have filed all returns in accordance with the provisions of sections 37, 38, 39 and 44 of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017) for the period commencing from 1st July, 2017 till the date of submitting application for refund, as may be applicable; and (iii) dealer should not have any outstanding liability towards payment of tax, cess, interest, late fee, penalty, etc. under the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017), the Central Goods and Services Tax Act, 2017 (Central Act 12 of 2017), the Integrated Goods and Services Tax Act, 2017 (Central Act 13 of 2017) and the Goods and Services Tax (Compensation to States) Ac t, 2017 (Central Act 15 of 2017) as on the date of filing the application for refund claim under this subsection.] 43 [ (2C) Notwithstanding anything contained in sub -sections (2), (2A) and (2B), after ---15--- adjustment under sub -section (1), the excess of input t ax credit, as determined in assessment or re-assessment or appeal or revision for any year upto the year ending on the 31st day of March, 2017, in case of a dealer,— (a) dealing in goods not covered under clause (p) of section 2, and (b) who has not applied for carry forward of unutilized/excess input tax credit by filing application under the provisions o
Excerpt shown. Open the full act in Lexace.