Bhubaneswar: The proposed GST reforms will ease compliance for small businesses and taxpayers in rural and semi-urban areas of Odisha by simplifying registration procedures, speeding up refunds and reducing unnecessary notices, state minister Prithiviraj Harichandan said on Thursday.
Representing Chief Minister Mohan Charan Majhi at the 57th meeting of the GST Council in New Delhi, the Excise, Law and Works Minister presented Odisha’s perspective on key reforms aimed at making the indirect tax regime simpler, faster, more transparent and taxpayer-friendly.
The meeting, chaired by Union Finance Minister Nirmala Sitharaman, discussed proposals to reduce compliance difficulties for small businesses, micro, small and medium enterprises (MSMEs), and genuine taxpayers while supporting economic growth and the vision of “Viksit Bharat by 2047”.
Harichandan said a key proposal involved the system-based processing and sanctioning of refunds to ensure that genuine taxpayers receive their dues faster and with greater transparency.
Proposals to allow refunds of input tax credit (ITC) on capital goods used for zero-rated supplies, as well as ITC on input services and capital goods under the inverted duty structure, would benefit exporters and help manufacturers unlock working capital, he said.
“The recommendations on GST return filing and an alternative mechanism for correcting liabilities and ITC, developed by the Working Group on GST Returns and Processes, of which the Odisha State GST team is a member, will reduce mismatches and unnecessary notices,” the minister said.
Odisha also contributed to process-based refund reforms through the GST Law Committee, Harichandan said.
He added that the proposal to remove arrest provisions for economic offences that can be adequately addressed under GST law would help maintain a balance between enforcement and taxpayer confidence.
“These reforms will promote ease of doing business and ease of compliance, making the GST regime more predictable, transparent, taxpayer-friendly and responsive. They will also provide significant relief to MSMEs and small businesses in Odisha, enabling them to comply more easily and focus on growth and expansion,” Harichandan said.
Chief ministers, finance ministers and nominated ministers from states and Union Territories, along with senior officials of the Central and state governments, attended the meeting.
