THEBUSINESSBYTES BUREAU

BHUBANESWAR, AUGUST 1, 2026

The Odisha Government has proposed amendments to the Odisha Goods and Services Tax (OGST) Act, 2017, to align the state legislation with changes introduced in the Central Goods and Services Tax (CGST) Act through the Finance Act, 2026, a move aimed at simplifying tax compliance, reducing litigation and improving the ease of doing business.

The proposed amendments are based on recommendations approved at the 56th GST Council meeting and seek to create a more business-friendly tax framework while ensuring uniformity between the state and central GST laws.

A key proposal seeks to remove the existing 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 amended framework, taxpayers would be permitted to issue credit notes for post-sale discounts, provided the recipient reverses the corresponding input tax credit (ITC), thereby offering greater flexibility in commercial transactions.

In another significant reform, the state has proposed expanding the scope of provisional GST refunds.

At present, taxpayers engaged in zero-rated supplies are eligible for provisional refunds of up to 90 per cent of the claimed amount without detailed verification of supporting documents. The amendment proposes to extend the benefit to cases involving the Inverted Duty Structure, where the GST paid on inputs exceeds the tax applicable on finished goods.

Officials said the move is expected to improve cash flow and reduce working capital blockage caused by the accumulation of input tax credit, particularly benefiting micro, small and medium enterprises (MSMEs).

The proposed amendments also seek to abolish the existing minimum refund threshold of Rs 1,000 for export-related GST refund claims.

The measure is expected to provide relief to 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.