Shop in Goa, refund VAT; from Sept

GOANEWS DESK, PANAJI | 26 April 2013 20:17 IST

Goa plans to develop the tourist state as a high value shopping destination by refunding the Value Added Tax on their purchases at the air port.

The unique scheme would begin with a tourist season beginning in September, initially only for the foreign tourists.

“Once the experiment is successful, it would also be extended to domestic tourists from within India”, said chief minister Manohar Parrikar.

The cabinet meeting held today gave powers to the Commissioner of Commercial Taxes to formulate the scheme.

In his budget speech, Parrikar has spoken about this scheme that would provide refund of VAT charged at the time of departure, at the air port, against the valid tax invoices.

The scheme is also combined with an Aviation Turbine Fuel (ATF) scheme, in order to attract more tourists to Goa.

Under the scheme, the VAT charged for ATF would also be refunded, while retaining only 5 per cent VAT with the state authorities.

Goa government had already reduced last year the VAT on ATF from 22 per cent to 12.5 per cent.

Now, the airline carriers would get a refund of 7.5 per cent when they fill fuel in Goa.

“Both the schemes would be introduced together”, said Parrikar.

Following this, the state government plans to organise exhibitions in Goa of rich items like jewellery etc.

“The scheme would be applicable only for the listed items while putting a minimum quantity of items purchased in Goa”, he informed.

The idea is to make Goa a favourite shopping destination for valuable items.

On the other hand, the state government has decided to impose VAT on all the exhibitions held in Goa.

“Both – the organisers of the exhibitions as well as those providing space for exhibitions would be liable for VAT”, said the chief minister.

Parrikar had said in his budget speech that the dealers from the rest of the country along with the local dealers only arrang such exhibitions but actually do not conduct sale.

The government would now make it compulsory to obtain prior permission from the Commercial Tax Department with an advance deposit, which would be later adjusted against the sales.

The registered dealers and recognised Self Help Groups selling their own products would however be exempted from it. 

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