Panaji, Jan 14 (PTI) The Goa government has introduced a bill in the assembly to make tax rules easier for small dealers, cut down on repeated paperwork, and set clear deadlines for settlement applications.

The Goa Value Added Tax (Amendment) Bill, 2026, tabled by Chief Minister Pramod Sawant on Tuesday during the ongoing winter session of the assembly, proposes sweeping changes to Section 7 of the Goa VAT Act, 2005, governing the composition of tax for dealers.

The amendment aims to reduce the compliance burden on small traders and promote ease of doing business.

The bill seeks to allow small dealers to opt for the composition scheme only once, instead of renewing the option every financial year as required under the existing law.

Once exercised, the option will remain valid until the dealer voluntarily opts out or becomes ineligible due to breach of turnover limits or other prescribed conditions.

Under the proposed amendment, dealers covered under Schedule E whose turnover remains within the specified limit will be allowed to pay tax at a fixed rate on total turnover in lieu of the regular VAT liability, subject to prescribed conditions. The commissioner may accept such tax either in full or in instalments.

The bill also allows dealers liable to pay tax under certain provisions to opt for composition during the course of the year by filing a self-declaration that their turnover will not exceed the prescribed threshold.

To prevent misuse, it bars composition dealers from claiming input tax credit, charging VAT on invoices, or issuing tax invoices to other dealers. Dealers opting for composition for multiple classes of business will be required to maintain separate accounts for each category.

The bill also proposes to close the window for filing fresh applications under Section 31B, which deals with certain settlement-related provisions. It sets June 30, 2026, as the last date for filing such applications.

Further, the amendment introduces a right of appeal before the VAT Tribunal against any order passed under Section 31B, strengthening procedural safeguards for affected dealers.

Another significant change proposed in the bill is the introduction of a two-year limitation period for filing VAT refund applications.

Under the new provision, refund claims will have to be filed within two years from the close of the financial year to which the refund pertains. However, the limitation will not apply to refunds determined through assessment, rectification, review or appellate orders passed within the prescribed timeframe.

The government said the amendments are intended to bring certainty to tax administration while ensuring time-bound resolution of claims without any financial implication for the state. PTI RPS GK

VAT amendment bill eases compliance for small dealers with a one-time composition option and two-year refund limit. The bill allows eligible small dealers a one-time election into the composition scheme that remains effective until voluntary exit or loss of eligibility; Schedule E dealers within the turnover limit may pay tax at a fixed rate, payable in lump sum or instalments. Composition dealers cannot claim input tax credit, charge VAT on invoices, or issue tax invoices to other dealers, and must maintain separate accounts for multiple business classes. The amendment also sets a final filing date for Section 31B settlement applications, creates a right of appeal to the VAT Tribunal for Section 31B orders, and imposes a two-year limitation for VAT refund claims from the close of the relevant financial year, subject to limited exceptions.