Bhubaneswar: The Odisha Cabinet, led by Chief Minister Mohan Charan Majhi, has approved amendments to the Odisha Goods and Services Tax (GST) Act, 2017.
The proposed changes are intended to simplify provisions and provide certain facilities to taxpayers and tax authorities.
Chief Secretary Manoj Ahuja briefed Media after the Cabinet Meeting here on 1 August.
A key amendment involves removing ambiguities in the interpretation of “Plant and Machinery” and “Plant or Machinery” for availing input tax credit.
To check tax evasion, a track and trace mechanism will be introduced for evasion-prone sectors like pan masala, brick kilns, and sand mining. Violations of this mechanism will incur a penalty of ₹1 lakh or 10% of the tax payable.
In cases where a supplier issues a credit note due to a reduction in the value of supply, the recipient will also be required to reverse their Input Tax Credit proportionally.
The amendments also include defining the terms “local fund” and “municipal fund” to clarify their scope.
Provisions related to the time of supply for transactions involving vouchers will be removed, as these are not considered a supply of goods or services.
Furthermore, for an appeal against an order that only involves a penalty without any tax demand, a pre-deposit of 10% of the penalty amount is required before the Appellate Authority or Appellate Tribunal.
The changes will also provide taxpayers with more flexibility in filing returns.