Goa Beach Shack Licence 2026-27: Policy Extension, Private-Land Shacks, GST and the Monsoon Close
Goa’s 2023-26 beach shack policy has been extended by one season, so 2026-27 shacks on government beaches run on the same terms and fees, with licences issued from 10 September 2026. Shacks on private land in the coastal zone are a separate track: they renew with the Tourism Department every season, and a 2026 amendment to the Tourist Trade Act makes their registration a legal duty with penalties of up to ₹1 lakh. This guide covers the licence, the rules that most often cost shack owners money, and the GST and income tax side of a season that runs from September to June.
Government-beach shacks: the 2026-27 position
- One-year extension. The government extended the Goa State Shack Policy 2023-26 to the 2026-27 season on the same terms, by notification No. 7/7(1273)2026/DT/3212 dated 24 September 2026. Licences were issued from 10 September with no fee increase reported.
- A longer season. Shacks may stay open until 10 June 2027, weather permitting, instead of closing on 31 May.
- A court challenge. The Bombay High Court at Goa issued notice to the Tourism Department on the extension in August 2026. No stay was reported. In 2022 the court rejected a similar challenge to an earlier extension.
- The policy covers 364 shacks: 259 in North Goa and 105 in South Goa, allotted by draw of lots stretch by stretch.
Fees under the 2023-26 policy
| Item | Stretch A | Stretch B |
|---|---|---|
| Annual licence fee, year 1 (2023-24) | ₹1,50,000 | ₹1,25,000 |
| Annual licence fee, year 2 (2024-25) | ₹1,65,000 | ₹1,37,500 |
| Annual licence fee, year 3 (2025-26) | ₹1,81,500 | ₹1,51,250 |
| Deck beds, per season | ₹30,000 | ₹30,000 |
| Security deposit | ₹1,00,000 | ₹50,000 |
An application fee of ₹10,000 and a processing fee of ₹13,000 apply at allotment. The annual fee is due by 15 August. With no increase reported for 2026-27, expect the year-3 figure, but check your demand note.
Who can get a shack
- Ten per cent of shacks go to applicants with no experience, ten per cent to those with 1 to 4 years’ experience in the district, and the rest to those with 5 or more years.
- The applicant must have no job, pension or other business. Only one shack per family (husband, wife and unmarried children).
- No pending charge sheet and no earlier penalty for subletting.
The rules that cost shack owners the most
| Rule | What happens if you break it |
|---|---|
| No subletting | ₹25 lakh penalty, deposit forfeited, demolition and a permanent blacklist |
| Dismantle by 10 June | Deposit forfeited and 10 years’ debarment under the policy; ₹5,000 a day under the 2024 Act |
| Deck beds only within 15 m, fenced and numbered | ₹5,000 per unauthorised item |
| Clean portable toilet | ₹10,000, then ₹20,000, then cancellation |
| Turtle-nesting beaches: nothing after 6 pm | ₹1 lakh per violation |
The policy also limits the shack to 18 m by 8 m by 5.5 m with no concrete and no mezzanine, sets hours of 7 am to 11 pm, requires CCTV with 30 days of footage, and bans foreign staff. Music must not be audible outside the shack.
Enforcement is real. In March 2025 the department shut 23 shacks out of 110 issued show-cause notices. The reasons included subletting, payments landing in someone else’s name, missing GST registration and unmarked deck beds.
Shacks on private land in the coastal zone
- Renew every season. For 2026-27 the window closed on 15 July 2026, at the Registration Facilitation Centres in Panaji and Margao. You need ownership or lease proof, a site plan, an affidavit, NOCs, fire clearance and GCZMA clearance.
- Fees. For 2025-26 the total was ₹34,500 up to 150 sq m and ₹79,000 for larger structures, including GST and processing.
- The 2026 amendment. The Goa Registration of Tourist Trade (Amendment) Bill, 2026 (Bill No. 59 of 2026) was passed on 2 September 2026. Its new section 13C makes registration compulsory for any temporary shack on private property in a CRZ area. The new section 22 sets a penalty of up to ₹1 lakh for an unregistered private shack, penal interest of ₹500 a day for the first 30 days and ₹1,000 a day after that, plus sealing and disconnection of water and power. It starts on a date to be notified.
- Why it matters. The minister told the House that about 450 of 742 private CRZ shacks were unregistered.
The same Bill also writes the government-beach system into the Act: applications for three seasons at a time, a one-season licence renewable twice, and a draw of lots where applicants outnumber shacks.
The other permissions every shack needs
- Tourism Department permission or registration.
- Panchayat or municipal NOC and trade licence.
- Health Officer NOC.
- Fire NOC. After the Arpora fire in December 2025 the state issued a fire-safety advisory, and inspectors now check this first.
- Excise licence if you serve liquor. It is seasonal, October to May, and needs the Tourism, GCZMA and local-authority approvals first.
- Pollution Control Board consent to operate.
- FSSAI registration, or a state licence above ₹1.5 crore turnover.
GST for a shack
- Rate: food and drink served in a shack is restaurant service at 5% GST without input tax credit. Liquor is outside GST and carries state excise and VAT instead.
- Registration: the threshold for services in Goa is ₹20 lakh. Most shacks cross it in a good season, and the policy requires printed bills carrying a GST number anyway.
- Composition: a restaurant with turnover up to ₹1.5 crore can opt for composition at 5% of turnover with simpler quarterly returns. You cannot collect GST from customers under composition, so price accordingly.
- Payments: the policy requires a POS machine, UPI and a dedicated bank account, with statements to the department every three months. Those receipts are the first thing a GST or income tax officer compares with your returns.
Income tax and the monsoon close
A shack season runs from September to June, so every season straddles 31 March. October to March income goes into one year’s return and April to June into the next. Book the licence fee, deposit and structure costs in the year you pay them, and keep the deposit as an asset until it comes back.
Most shack owners can use presumptive taxation under section 58 of the Income-tax Act, 2025 (the old section 44AD). It deems profit at 8% of turnover, or 6% of receipts that come digitally, for turnover up to ₹2 crore, or ₹3 crore where cash is 5% or less of receipts. If you opt out after using it, you cannot return for five years. With UPI and card sales now mandatory, most of your receipts qualify for the 6% rate.
Close the books in June when the shack comes down, not in March. Reconcile the season’s UPI and card receipts with your GST returns while the bank statements are fresh.
Frequently asked questions
Has the Goa shack policy been extended for 2026-27?
Yes. The 2023-26 policy was extended by one year on the same terms, with licences from 10 September 2026 and operation allowed until 10 June 2027, weather permitting.
Do private-land shacks in Goa need registration?
Yes. They already renew with the Tourism Department every season, and the 2026 amendment makes registration a statutory duty with penalties of up to ₹1 lakh once it is notified.
What GST does a beach shack charge?
5% without input tax credit on food and drink, or 5% of turnover under composition. Liquor is outside GST.
TAXAJ’s Goa office in Porvorim handles GST registration and returns, books and income tax for shacks, restaurants and hotels across the coast. See our hotel and restaurant accounting service or talk to our Goa team.
Last updated 26 October 2026. Sources: Goa State Shack Policy 2023-2026 (Department of Tourism); extension notification No. 7/7(1273)2026/DT/3212 dated 24 September 2026; Goa Registration of Tourist Trade (Amendment) Bill, 2026 (Bill No. 59 of 2026); Goa Act 25 of 2024; reports in The Goan and Herald Goa on the extension, the High Court notice, private-shack registration and the March 2025 crackdown; FSSAI press release of 13 March 2026; section 10 of the CGST Act, 2017; section 58 of the Income-tax Act, 2025. General information only; check your licence conditions and demand note before acting.
