Goa's Tax Overhaul: Easing the Burden on Small Dealers

The Goa government has proposed an amendment to the VAT Act, aiming to simplify tax rules for small dealers and encourage ease of doing business. The bill suggests a one-time composition scheme for small traders, introduces a deadline for settlement applications, and establishes a right to appeal for procedural safeguards.

The Goa government is set to revolutionize tax rules for small dealers with the introduction of a new bill designed to streamline processes and cut bureaucratic paperwork. Chief Minister Pramod Sawant presented the Goa Value Added Tax (Amendment) Bill, 2026, during the ongoing winter assembly session, proposing transformative changes to the existing tax framework.

The amendment targets Section 7 of the Goa VAT Act, 2005, offering small dealers the option to choose a composition scheme just once, valid until they voluntarily withdraw or breach specified conditions. Dealers maintaining turnovers within prescribed limits can pay tax at a fixed rate instead of dealing with regular VAT liabilities, with the option for instalment payments.

Significantly, the bill sets June 30, 2026, as the final date for certain settlement application filings and strengthens procedural safeguards by introducing an appeal right before the VAT Tribunal. It also establishes a two-year limitation for refund applications, ensuring a fair and prompt resolution of tax-related issues.