The primary reason for this strict new rule is the observation that outside agencies frequently host short-term events in Goa without obtaining the mandatory registration as a “Casual Taxable Person” (CTP).
Under GST law, any person who occasionally undertakes taxable supplies in a state where they have no fixed place of business must register as a CTP at least five days before starting their business, regardless of their turnover. The government has found that many of these organisers leave the state after an event without paying tax, and that property owners often fail to cooperate with officials once the event is over.
Consequently, the government now views property owners who allow such events on their land as “abettors” of tax evasion if the proper procedures are not followed. This order is particularly dangerous for property owners because it shifts the financial and legal burden of tax compliance directly onto them. If an owner fails to submit the required information within the stipulated timeframe, the law will “deem” that all supplies made during the event were made by the property owner themselves.
This means the owner will be assessed for the total tax liability, interest, and penalties arising from the event’s turnover. Furthermore, non-compliance is treated as a criminal offence under the GST Act. On conviction, a property owner could face a fine or even imprisonment for a term of up to six months.
To stay compliant and avoid these heavy risks, property owners must follow a specific reporting protocol at least three days before any event begins:
First, the owner is required to verify and obtain the Permanent Account Number (PAN) of the event organiser.
They must also determine whether the organiser has a valid GST Identification Number (GSTIN) in Goa and keep a copy of their Registration Certificate.
If the organiser claims they are not liable for registration, the property owner must obtain a written self-declaration from them to that effect.
Once this information is gathered, it must be submitted to the designated tax officials using the “Annexure” format provided in the gazette.
This report must include the informant’s contact details, the organiser’s legal name, and specific details about the venue and timing of the event.
The information must be sent via email to the Additional Commissioner of State Tax (Enforcement) for the relevant district”North Goa, South Goa, or Kushavati”and a signed hard copy must also be submitted in writing.
After filing, owners should ensure they receive and retain an official acknowledgement as evidence of their compliance.
Ultimately, these new regulations represent a major shift in how the Goa tax department handles event-based commerce, moving the burden of proof from the state to the property owner. To protect yourself from being unfairly labelled a “tax evader” or a “deemed supplier”, you must submit the required documentation to the Additional Commissioner of State Tax (Enforcement) in North Goa, South Goa, or Kushavati at least three days before any event begins.
Ignoring these instructions is a serious risk; non-compliance is an offence under sections 122, 124, and 132 of the GST law, which can result in heavy fines or even up to six months of imprisonment. By strictly adhering to these reporting protocols and securing an official acknowledgement, property owners can ensure they remain facilitators of local culture rather than accidental targets for the organiser’s unpaid tax bills.
(The writer, a Fellow Chartered Accountant (FCA), specialising in Goods, Services tax, Transfer Pricing and Income tax, is the co-author of the book ‘Comedium of Industrial Policy for MSMEs in Goa’ released by ICAI)
