VAT in Goa: Rates, Eligibility, Registration Process & Fees
Goa, being the tourist capital of India, has always been one of the important trade centres in India. There has been a slightly different integration of tax rules and regulations when it comes to Goa. Value Added Tax in Goa was launched in 2005 and has been under modifications as and when required.
Recently this tax has been replaced by a uniform tax regime or GST introduced by the Central Government in 2017. Nonetheless, this blog will take you through all the necessary details related to VAT in Goa.
What Is Value Added Tax?
Value Added Tax or VAT is levied and collected by the respective State Government and forms a large part of its revenue generation. As this tax is levied by the state governments, the tax rates vary from one state to another, which is not the case with the central taxes. This tax is one of the main sources of revenue for the state governments.
What Are the VAT Rates for Goods and Services in Goa?
There are four different schedules for VAT rates of goods and services in Goa which come under the regulation of the Goa Value Added Tax Act. The schedules are discussed below in the given table:
| Schedule | Applicable Goods or Services | VAT Rates in Goa |
| Schedule A | Gold, silver and precious stones | 1% |
| Schedule B | 160 categories of products such as non-manual agricultural implements, acids, comb, brick, cotton, cheese, coffee and locally made handicrafts | 5% |
| Schedule C | Petrol, diesel, aviation fuel, Indian liquor etc. | 1% to 22% (highest on alcohol) |
| Schedule D | 70 categories of essential products such as manual agricultural implements, bread, milk, garlic, fruits, rice, meat and many more | VAT exempted |
Who Should Pay VAT in Goa?
Following are the individuals who should pay VAT in Goa upon fulfilling the mentioned criteria:
- Producers with a turnover of Rs. 1 lakh
- Dealers with a turnover of Rs. 5 lakh and more
- Non-resident dealers with a turnover of Rs. 10000
How to Register for VAT in Goa Online?
Every producer who is involved in the trade of items mentioned in VAT schedules needs to register themselves prior to engaging in such activity. Following are the steps one needs to follow to register for VAT in Goa online:
Step 1: Visit the web portal of Goa State Tax.
Step 2: Fill in personal details such as name, date of birth, contact details, address etc.
Step 3: Provide details of the business such as an address, incorporation date, make-up and turnover of the business, PAN details, TIN etc.
Step 4: Submit the form upon completion and wait for the registration certificate, which will be provided after successful verification of the associated details.
How to Pay for VAT Registration Fee in Goa Online?
For ease of payment and collection of VAT, Goa Government has implemented a process of online payment or e-filing of Goa VAT registration fees. Further, the fee may range from ₹ 1000 to ₹ 10000 depending on the business turnover, which can be under ₹ 5 lakhs to ₹ 1 crore. The Individuals who wish to avail of the services can do the same by following the given steps:
Step 1: Log in to the e-filing portal with the unique login credentials.
Step 2: Provide details such as PAN details, bank account details and the period for which the payment is being made.
Step 3: Choose your preferred payment method.
Step 4: If paying online, an e-challan number will be required to complete the transaction.
Step 5: A receipt will be generated upon successful payment.
How to File a Return Against VAT Payment in Goa?
Follow the step-wise guide to file a return against VAT payment in Goa online:
Step 1: Log in to the website of the Department of Commercial Taxes, Government of Goa. Go to the ‘e-Services’ section.
Step 2: Now, register for VAT payment and then select the appropriate form to file a return against VAT payment.
How Is VAT Different From GST in Goa?
VAT is state specific and is a main source of revenue for the State Government. VAT is implied at every stage of production of a product, and the customers pay the accumulated tax on the final product. Whereas GST is mostly uniform in all the states, and both the Central and the State governments have their share in it. Unlike VAT, the government levies GST on the final product only.
Upon implementation of the uniform tax regulations, VAT is almost obsolete in most states.
The above blog discusses all the minor and major information regarding VAT in Goa. Paying attention to the deadline for tax payment and doing the same regularly will save you from any tax complications and penalties in future.
Frequently Asked Questions
Is it compulsory to pay VAT in Goa?
Yes, it is mandatory to pay VAT in Goa which is implemented through the Goa Value Added Tax Act of 2005.
What is the VAT rate for liquors in Goa?
Goa has the lowest VAT rate in the country but still the highest among all the other commodities and services which come under the VAT regime. Liquors have a tax rate of 22% in Goa.