The Government of Goa publishes The Goa (Recovery of Arrears of Tax through Settlement) (Amendment) Bill, 2020

The Government of Goa has notified The Goa (Recovery of Arrears of Tax through Settlement) (Amendment) Bill, 2020. The Bill was notified on 10^th August 2020. It shall be deemed to have come into force on the 20th day of May, 2020

The Bill contemplates the following changes:

• Expeditious enforcement of payment of arrears of tax relating to the period until 31st  March, 2016 or 31st January, 2020, as the case may be, under Sales Tax Law, Central Sales Tax Law, Luxury Tax Law and Entry Tax Law. Prior to this change, the specified period was until 31^st March, 2015.

• The definition of ‘specified period’ has been made more comprehensive. It deals with two scenarios:

1. The assessment period till 31^st March, 2016 and such assessment is finalized by an assessment order by or on 31^st January, 2020. Further such order is not disputed in Appeal, Review or Revision.
2. The assessment period till 30^th June, 2017 and such assessment is disputed before 31^st January, 2020.

Prior to this change “specified period” meant any period of assessment until 31^st March, 2015.

• The amendment also brings changes to the eligibility for a settlement. It does not permit an application for settlement of arrears if:

1.  the appellate or revisional authority or court has remanded the case for fresh assessment which has not been completed by 31^st January, 2020,
2. the case is assessed/ reassessed under the Goa Value Added Tax Act, 2005 or
3. the case is already decided and settled before the commencement of the Goa (Recovery of Arrears of Tax through Settlement) (Amendment) Act, 2020.

• The application for settlement of arrears tax, interest or penalty must be made in the prescribed form before the expiry of 6 months, from the date of coming into force of the Goa (Recovery of Arrears of Tax through Settlement)(Amendment) Act, 2020.

Prior to this amendment, the application had to be made within 3 months from the date of coming into force of the Goa (Recovery of Arrears of Tax through Settlement) (Amendment) Act, 2016.

• An applicant for settlement of arrears, being a dealer, whose appeal is pending before the Appellate Authority under the relevant Act or before Tribunal, as on the 31st day of January, 2020 and who has paid 10 % or 50 % of the disputed amount of tax under the Goa Value Added Tax Act, 2005 as the case may be is required to pay the balance by e-challan and submit a self-attested photocopy to the designated authority.

The Amendment now also incorporates the payment of 10% of tax under the Goa Value Added Tax Act, 2005 in addition to the 50% that was recognised prior to the amendment.

• Furthermore, the amendment also revises the Forms I (Application for Settlement) and Form II (Intimation to the applicant by the designated authority)