Bhubaneswar: The Odisha Government has proposed amendments to the Odisha Goods and Services Tax (OGST) Act, 2017, to bring the state legislation in line with the changes introduced to the Central Goods and Services Tax (CGST) Act through the Finance Act, 2026.
The proposed amendments are based on recommendations approved during the 56th GST Council meeting and are aimed at simplifying tax compliance, reducing litigation and improving the ease of doing business.
One of the key changes seeks to remove the existing legal requirement for businesses to link post-sale commercial discounts with original tax invoices and agreements executed before the supply of goods or services. Under the proposed framework, taxpayers will be allowed to issue credit notes for post-sale discounts, provided the recipient reverses the corresponding input tax credit.
The government has also proposed expanding the scope of provisional GST refunds. Currently, taxpayers engaged in zero-rated supplies are eligible to receive provisional refunds of up to 90 per cent of the claimed amount without detailed verification of supporting documents. The amendment would extend this benefit to cases involving the Inverted Duty Structure, where the tax paid on inputs exceeds the tax applicable on finished products.
Officials said the move is expected to ease liquidity constraints, particularly for micro, small and medium enterprises (MSMEs), by reducing the blockage of working capital arising from accumulated input tax credit.
Another significant proposal is the removal of the existing minimum refund threshold of Rs 1,000 for export-related GST refund claims. The change is expected to benefit micro-exporters, startups and cottage industries, especially those operating in Tier-II, Tier-III and rural areas, by enabling them to claim refunds irrespective of the amount involved. The government believes the measure will enhance the global competitiveness of low-value Indian exports.
According to the proposal, the mirror amendments to the state GST law are intended to ensure consistency with the central legislation while reducing administrative disputes and creating a more business-friendly tax regime.
