Bhubaneswar, Aug 1: The Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, today approved five proposals from four different departments, including significant amendments to the Odisha Goods and Services Tax (OGST) Act, 2017.
The proposed changes aim to streamline tax administration, enhance compliance, and make procedures more user-friendly for both taxpayers and authorities. The amendments are designed to remove ambiguities, increase flexibility, and curb tax evasion.
One of the key changes addresses confusion between the terms “Plant and Machinery” and “Plant or Machinery,” ensuring clarity for availing input tax credit (ITC). The revised provisions also offer taxpayers greater flexibility in filing their returns.
To strengthen anti-evasion measures, the amendments mandate that suppliers issue credit notes when the value of goods or services is reduced due to sales returns or other reasons. Correspondingly, recipients of such credit notes must reverse the ITC proportionally.
A track-and-trace mechanism will be introduced in high-risk sectors such as pan masala, brick kilns, and sand mining to tackle revenue leakage. Violations of this rule will attract a penalty of ₹1 lakh or 10% of the tax payable, whichever is higher.
Further clarifications include defining the terms “local fund” and “municipal fund” to specify their scope under the Act. Additionally, provisions related to the timing of supply involving vouchers will be removed, as these transactions are not classified as a supply of goods or services.
The Cabinet also approved a new rule for appeals involving penalty-only cases (where there is no tax demand). A mandatory pre-deposit of 10% of the penalty amount will be required for filing appeals before the Appellate Authority or Appellate Tribunal.
