The Government of Goa has notified vide Notification No. 7/9/2026-LA/42 dated February 25, 2026 the Goa Value Added Tax (Amendment) Act, 2026 (Goa Act 6 of 2026) following its passage by the Legislative Assembly of Goa on 15 January 2026 and assent by the Governor of Goa on 18 February 2026. The Act has been published in the Official Gazette for the information of the general public.
The amendment has been enacted to further amend the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) with the objective of streamlining provisions relating to the composition scheme, settlement applications, and refund procedures under the Act. The provisions of the amendment will come into force on such date as may be notified by the Government in the Official Gazette.
Substitution of Section 7 – Composition of Tax
The amendment substitutes Section 7 of the principal Act relating to the composition of tax for registered dealers. Under the revised provision, eligible registered dealers whose total turnover in the previous year does not exceed the prescribed limit as specified in Schedule E may opt to pay tax under the composition scheme at a rate prescribed for the respective class of dealers. The composition amount shall be calculated on the total turnover and may be paid either in full or in instalments, as prescribed.
The amended provision further clarifies that dealers opting for the composition scheme will not be entitled to claim input tax credit, cannot charge tax separately in their sales invoices, and cannot issue tax invoices to purchasing dealers. Additionally, the option for composition shall remain valid until the dealer voluntarily opts out or becomes ineligible due to exceeding the turnover limit or violating eligibility conditions.
In cases involving transfer of business, the turnover of both transferor and transferee shall be aggregated for determining eligibility under the composition scheme. The amendment also requires dealers engaged in more than one class of business specified in Schedule E to maintain separate accounts for each class of business, while the turnover limits will apply separately to each category.
Furthermore, the definition of total turnover for this section excludes turnover relating to goods covered under the Goa Goods and Services Tax Act, 2017, ensuring that only VAT-related transactions are considered for eligibility under the composition scheme.
Amendment to Section 31B – Settlement Applications
The Act also amends Section 31B relating to settlement applications. The revised provision stipulates that applications for settlement must be submitted on or before 30 June 2026 on plain paper, along with a non-refundable processing fee of ₹10,000. Separate applications are required for each assessment year or assessment period. Applications filed after 1 July 2026 will not be entertained.
Additionally, a new provision has been inserted allowing any person aggrieved by an order passed under Section 31B to file an appeal before the Tribunal under Section 36 of the Act, with the same procedural framework applicable to such appeals.
Amendment to Section 33 – Time Limit for Refund Applications
The amendment also introduces sub-section (3) in Section 33 relating to refund applications. As per the new provision, any application seeking refund must be filed within two years from the end of the financial year to which the refund pertains. Applications filed after this period shall not be entertained, and no refund shall be granted in such cases.
However, the limitation period of two years will not apply to refunds determined through orders issued during assessment, rectification, review, or appeal proceedings, provided such orders are passed within the prescribed statutory time limits.
Objective of the Amendment
The Goa Value Added Tax (Amendment) Act, 2026 seeks to simplify compliance, clarify procedural provisions, and enhance administrative efficiency under the VAT framework in the State. The amendments provide greater clarity regarding eligibility under the composition scheme, introduce a structured timeline for settlement applications, and establish a clear limitation period for refund claims.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/Goa-VAT-Amendment-Act.2026.pdf
