Team Herald
PANJIM: The Goa Chamber of Commerce and Industry (GCCI) has called on the government to amend the Goa VAT law to prevent additional taxes on incentives and discounts received by liquor dealers.
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In a letter to the State Commissioner for Commercial Taxes, GCCI Taxation Committee Chair Rohan Bhandare highlighted concerns over the Tax Department’s interpretation of the law. Bhandare explained that liquor dealers purchase goods from suppliers and claim input tax credit on the taxes paid. Suppliers often offer incentives or discounts, such as sales promotions or cash rebates.
“The Tax Department views these incentives as taxable in the hands of liquor dealers and has reversed input tax credits from their balances while also demanding interest on these amounts,” Bhandare stated.
According to Bhandare, taxing incentives effectively leads to double taxation, as dealers have already paid VAT on the full invoice amount at the time of purchase.
