Bhubaneswar: The Odisha Goods and Services Tax Act, 2017 is proposed to be amended to simplify provisions and provide facilities to taxpayers and tax authorities. The amendments aim to clarify ambiguities, provide flexibility, and prevent tax evasion.
The proposed changes include removing ambiguities between the interpretation of “Plant and Machinery” and “Plant or Machinery” for availing input tax credit. Additionally, taxpayers will have more flexibility in filing returns.
To prevent tax evasion, suppliers will issue credit notes in case of reduction in the value of supply of goods or services due to sales return or any other reason. The recipient of the credit note will also be required to reverse Input Tax Credit proportionately.
A track and trace mechanism will be introduced to address revenue leakage in evasion-prone sectors like pan masala, brick kilns, and sand mining. Contravention of this provision will attract a penalty of Rs 1 lakh or 10% of tax payable.
The amendments also define the terms “local fund” and “municipal fund” to clarify their scope. Furthermore, provisions related to time of supply in respect of transactions involving vouchers will be removed, as such transactions are neither a supply of goods nor services.
For appeals, a pre-deposit of 10% of the penalty amount will be required for filing an appeal before the Appellate Authority or Appellate Tribunal against an order involving penalty only, without any demand for tax. These changes are expected to benefit taxpayers and tax authorities alike.
