Goa government has decided to cancel registration of those traders frequently evading Value Added Tax (VAT) to plug revenue loses to the state exchequer.

The state Chief Minister Manohar Parrikar told reporters today that the commercial tax department will commission its officials to send as decoy customers to visit shops.

"If shops are found not offering bills resulting in the evasion of VAT payment, they will be fined Rs 1000," he said.

It was also decided that if a trader is fined ten times in a year, his registration would stand cancelled forever, Parrikar said.

The state cabinet today amended Goa Value Added Tax Act, 2005, providing teeth to the government to act against such violators.

Parrikar said that the enforcement of the amendments to the act would result in additional revenue mobilization of Rs 150 crore in the form of VAT for the state government.

The amendments, which were approved by state cabinet today would be placed before the House during the ongoing State Legislative Assembly session, next week.

The cabinet also approved scaling down VAT on industrial input from 12.5 per cent to five per cent for providing relief to industrialists, he said.

Parrikar reasoned that VAT on industrial input is refunded to industries after three years.

"But by the time it is refunded, the money is blocked with the government, inconveniencing industrialists. With VAT being decreased to five per cent, industries will not be forced to face hardship," he said.

The amendment in VAT act has given rights to the Commissioner of Commercial Taxes to identify industrial inputs to each industry and provide a lowered VAT rate, he said.