(1) Subject to such conditions and in such circumstances as may be prescribed, if any registered dealer, of the class specified in Schedule E, whose total turnover in the previous year does not exceed the limit specified in the said Schedule and who is liable to pay tax under 24[sub-section (1), (2) and (3) of] section 3, so elects, the Commissioner may accept towards composition of tax, in lieu of the net amount of tax payable by him under this Act, during the year, an amount at the rate shown against respective class of dealers in the said Schedule calculated on total turnover, either in full or in instalments, as may be prescribed.
---10--- 25[Provided that any dealer of the class specified in Schedule ‘E’ who is liable to pay tax under sub-sections (2) and (3) of section 3, may, at any time during the year, by making self declaration that his turnover of sales during the said year will not exceed the limit specified in the said Schedule ‘E’ apply for composition of tax under this section.]
26[(1A) In the event of transfer of business under any of the circumstances as provided under section 19, the total turnover for the purposes of sub-section (1) shall be the aggregate of the turnover of the transferor as well as the transferee during the year and the prescribed conditions, if any, shall be applicable with reference to such aggregate of the turnover.]
(2) Any dealer eligible for composition of tax under sub-section (1) shall not:—
(a) be permitted to claim any input tax credit on purchases and on stock held on the appointed day or on the day from which he is held liable to pay tax under this Act or on the day on which his Registration Certificate is made valid, as the case may be;
(b) charge any tax under this Act in his sales bill or sales invoice in respect of sales made by him,
(c) issue tax invoice to any dealer who has purchased the goods from him.
N. B.:— Total turnover for the purposes of this section will include aggregate sales of taxable and non-taxable goods.
27[(3) Any dealer who is eligible for composition of tax under sub-section (1), fails to file return within the time prescribed, for the period for which composition is granted, he shall not be eligible for composition of tax for next one year:
Provided that the Commissioner, upon an application made by such dealer to continue in the composition scheme, shall first determine the dealer’s liability for the preceding year within a period of 30 days from the date of such application. After payment of dues as determined by the Commissioner, the Commissioner may consider the said application and upon imposing a penalty of an amount equal to 10% of the tax so determined, by order in writing, permit the dealer to avail composition of tax.]
28[7. Composition of Tax— (1) Subject to such conditions and in such circumstances as may be prescribed, if any registered dealer, of the class specified in Schedule E, whose total turnover in the previous year does not exceed the limit specified in the said Schedule and who is liable to pay tax under sub-section (1), (2) and (3) of Section 3, so elects, the Commissioner may accept towards composition of tax, in lieu of the net amount of tax payable by him under this Act, an amount at the rate shown against respective class of dealers in the said Schedule calculated on total turnover, either in full or in instalments, as may be prescribed:
Provided that any dealer of the class specified in Schedule ‘E’ is liable to pay tax under sub- section (2) and (3) of Section 3, may, at any time during the year, by making self-declaration that his turnover of sales during the said year will not exceed the limit specified in the said Schedule ‘E’ apply for composition of tax under this section.
(2) In the event of transfer of business under any of the circumstances as provided under Section 19, the total turnover for the purposes of sub-section (1) shall be the aggregate of the turnover of the transferor as well as the transferee during the year and the prescribed conditions, if any, shall be applicable with reference to such aggregate of the turnover.
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(3) Any dealer eligible for composition of tax under sub-section (1) shall not:—
(a) be permitted to claim any input tax credit on purchases and on stock held on the appointed day or on the day from which he is held liable to pay tax under this Act or on the day on which his Registration Certificate is made valid, as the case may be;
(b) charge any tax under this Act in his sales bill or sales invoice in respect of sales made by him;
(c) issue tax invoice to any dealer who has purchased the goods from him.
(4) The option of composition availed of by a registered dealer under sub-section (1) shall continue to be in force till the time dealer voluntarily opt out of composition scheme by making an application in writing and submitting the same to the registration authority mentioning the date from which the dealer voluntarily opts out of composition. The date of opting out of composition scheme voluntarily shall be the date on or after submission of such written application.
(5) The option of composition availed of by a registered dealer under sub-section (1) shall be automatically invalid with effect from the date from which the dealer ceases to be eligible to continue under the composition scheme due to his aggregate turnover during the financial year exceeding the limit specified under sub-section (1) or for violating any other eligibility conditions to continue under composition scheme.
(6) In case of dealer opting for composition for more than one class of business from those specified in schedule E, the turnover limit as specified in schedule E for each of the class of business shall be separately applicable for each class of business and the dealer shall be liable to maintain separate clear and legible accounts in respect of turnover of each such class of business.
(7) For the purposes of this section, the total turnover of a dealer shall be the turnover as defined under clause (am) of Section 2 of this Act and any turnover of goods under the ambit of the Goa Goods and Services Tax Act, 2017 (Goa Act No. 4 of 2017) shall not be taken into consideration while computing the total turnover.
(8) A registered dealer shall not be eligible to opt for composition under this section unless such dealer opts for composition for all types of businesses dealing with goods under this Act undertaken by him as one legal person in the State of Goa]