Bhubaneswar: Senior BJD Lawmaker Kalikesh Narayan Singh Deo has strongly opposed the move of BJP government to amend the Odisha Goods and Services Tax Act, 2017.
While speaking about the GST and the Bill in Assembly, Shri Singh Deo said he was the part of the Parliamentary committee, which drafted the GST Bill in 2017 under the leadership of the then Union Finance Minister Arun Jaitely.
The GST was prepared to simplify the tax system in the country with Prime Minister Narendra Modi’s vision for ‘one nation one tax’. But, now, it has been diverted from its objective and several slabs and categories have been substituted under the GST, he said.
The GST has now become so complicated, a common man cannot understand it and many small time traders are facing difficulties while compiling it, the BJD leader pointed out.
Now, the Chief Minister, who holds the Finance portfolio, has moved for further amendment to the Act, which is not in the interest for the State and its people.
The proposed amendment was to make it mandatory for distribution of input tax credit (ITC) in respect of input services procured by Head Office (HO) from a third party but attributable to both head office (HO) and branch office (BO), or exclusively to one or more BOs.
This will certainly benefit the states like Gujarat, Uttar Pradesh and Bihar, where the Tobacco and cigarettes are being manufactured, he said, adding, “Let the CM clarify whether the Bill is in the favour of the State or not?”
As it is a statutory obligation to pass the Bill in the State Assembly to get a majority to implement it, the State is doing so for pen and paper works only, he said while opposing the Bill.
The proposed amendments are in the light of recommendations in the 50th GST Council meeting.
The Centre has already amended its Act in February this year and asked the States to do so. These have been carried out through the Finance Act, 2024. States are required to carry out amendments in the State GST Act. Many BJP ruled states have already done it or are in process of doing so, sources said.
The amendment is to make registration of ISD mandatory in case of procurement of common input services and distribution of ITC thereof to distinct persons, and also to include ISD to distribute ITC in respect of services.
The bill also seeks to insert a new section 122A to provide Rs 1 lakh per machine for penalty and confiscation of the unregistered machines in case of failure to register certain machines used in manufacture of notified goods.