Odisha Small Businesses to Gain from Proposed GST Reforms

Odisha Law Minister Prithiviraj Harichandan has welcomed proposed changes to the GST system, saying simpler registration procedures and clearer compliance guidance could make tax-related processes easier for small businesses in rural and semi-urban areas.

Harichandan represented Chief Minister Mohan Charan Majhi at the 57th meeting of the GST Council in New Delhi on Thursday. The meeting, chaired by Union Finance Minister Nirmala Sitharaman, focused on reforms to improve the efficiency, transparency and ease of compliance under the Goods and Services Tax regime.

The proposed measures aim to reduce the compliance burden on small traders, micro, small and medium enterprises (MSMEs), and other genuine taxpayers, while supporting the broader vision of building a developed India by 2047.

Among the key proposals is a technology-driven system for processing and approving GST refunds. The mechanism is expected to make refunds faster and more transparent for eligible taxpayers.

Harichandan also highlighted proposals concerning Input Tax Credit (ITC), including refunds on capital goods used for zero-rated supplies and credits relating to input services and capital goods under the inverted duty structure. These changes could provide greater financial flexibility to exporters and manufacturers by releasing working capital.

The minister said recommendations on GST return filing and a mechanism to correct discrepancies in tax liabilities and ITC could help minimise errors and reduce unnecessary notices. Odisha’s State GST team contributed to the recommendations through its participation in the working group on GST returns and processes.

Odisha has also played a role in developing procedural improvements related to refunds through the GST Law Committee. Another proposal discussed at the meeting seeks to remove arrest provisions for certain economic offences that can be adequately dealt with under GST law.

According to Harichandan, the proposed changes would create a more predictable and taxpayer-friendly tax system, improve the ease of doing business and enable smaller enterprises to devote more resources to expansion and development.

The meeting was attended by chief ministers, finance ministers and other nominated representatives of states and Union Territories, along with senior officials from central and state governments.