PANJIM: Resentment is brewing among small traders and tavern owners for bringing them under what they call a “draconian: amendment to the Value Added Tax (VAT) by the government.
The sum and substance of the amendment is shocking. It basically means that whether a trader collects tax from the people or not, he will have to pay tax otherwise a penalty will be imposed.
The penalty for the unregistered dealers which can go up to Rs 25,000
A small trader from a rural area in Valpoi in the North Goa district said that it would be a headache for the small traders as they will have to file returns.
“In villages it is difficult to get good business as the majority of the people consume alcohol on credit. We hardly cross an income of Rs 1,000 a day,” the trader said.
Thomas Fernandes, who runs a retail liquor shop in Panjim, said that he had already registered and obtained an excise licence. “I had to register as I am selling both, country and IMFL liquor. Otherwise it was difficult for me to run the trade.”
Another trader Anthony Fernandes said that the government has amended the act to bring those organising various events and selling liquor. But it would affect the small traders who will now go for VAT registration and that too online. The government should reconsider the decision and provide some solace to small traders considering their annual turnover.
The State has made registration compulsory for those selling alcohol for human consumption and five petroleum products within 90 days of the enactment of the Goa Value Added Tax (Second Amendment) Act 2023.
Speaking to O Heraldo, Vishant Naik Gaunekar, Commercial Tax Officer, North Goa, said that around 500 small liquor traders have registered themselves for paying VAT online. The 90 days’ time limit given to traders to register for VAT online will end on the midnight of Wednesday, December 20.
He said, “We took details from the Excise Department of those who were holding excise licences and we found that around 3,600 traders were not paying VAT.”
“We asked these unregistered traders to get the registration done within 90 days, otherwise a fine would be imposed. We told them that whether you collect tax from the people or not, you will have to pay tax to the government, otherwise a penalty will be imposed on you. There is a penalty for the unregistered dealers which can go up to Rs 25,000,'' he said.
Chandresh Kunkalkar, Commercial Tax Officer in-charge for South Goa, said, “Earlier there was a threshold of turnover. It was Rs 5 lakh for the manufacturer and Rs 10 lakh for the retailer. But after the second amendment to Goa VAT Act the threshold has been removed. Irrespective of the income limit, whoever is holding an excise licence has to do VAT registration. The registration fee has been fixed at Rs 2,000.
Kunkalkar said that return is filed annually and tax on monthly basis. If the income is Rs one lakh or above then it should be filed within 20 days. VAT is charged at the rate of 22 per cent for foreign liquor or IMFL and 5 per cent for country liquor.