Odisha Backs GST Reforms to Simplify Compliance for Small Businesses
Bhubaneswar: Odisha has strongly supported a series of Goods and Services Tax (GST) reforms aimed at reducing compliance burdens and improving the ease of doing business for small enterprises, particularly in rural and semi-urban areas.
Odisha’s Excise, Law and Works Minister, Prithiviraj Harichandan, represented Chief Minister Mohan Charan Majhi at the 57th GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman in New Delhi.
During the meeting, Harichandan highlighted the state’s commitment to creating a more taxpayer-friendly GST ecosystem through simplified procedures, faster refund mechanisms, and transparent compliance systems.
The proposed reforms are expected to benefit micro, small and medium enterprises (MSMEs), exporters, manufacturers and genuine taxpayers across Odisha.
Among the key proposals discussed was the introduction of system-based processing and approval of GST refunds, a move expected to significantly reduce delays and enhance transparency.
The reforms also propose Input Tax Credit (ITC) refunds on capital goods used for zero-rated supplies and inverted duty structures, offering much-needed liquidity support to exporters and manufacturing units.
The GST Council also reviewed measures to streamline return filing and correct tax liabilities more efficiently, helping taxpayers avoid mismatches and unnecessary notices.
Officials believe these changes will lower compliance costs and reduce litigation.
Odisha played an active role in shaping the reform agenda, contributing to discussions on return filing simplification as well as refund-related provisions through the GST Law Committee.
Another notable proposal involves removing arrest provisions for certain economic offences that can be adequately addressed under existing GST laws.
The move is intended to strike a balance between enforcement and taxpayer confidence while promoting voluntary compliance.
Harichandan said the reforms would enhance transparency, predictability and trust within the tax administration system.
He emphasised that easier compliance and quicker refunds would allow businesses, especially MSMEs, to focus on growth, investment and job creation.
The proposed changes align with the broader objective of strengthening India’s business environment while supporting the vision of a developed nation by 2047.
