There are several indirect taxes levied by Indian governments that are part of GST, namely Central Excise duty, VAT, Purchase Tax, Goods Tax, Entry Tax, Local Body Tax, Octroi, Central Sales Tax, and Luxury Tax. GST combines several existing indirect taxes levied by Central and State Governments. There are six major taxes included in it: Central Excise Duty, VAT, Purchase Tax, Goods Tax, Entry Tax, Local Body Tax, Octroi, Central Sales Tax, and Luxury Tax.
In addition to lowering the cost of goods and services, boosting the market, and making products and services globally competitive, it provides several advantages to all stakeholders, including industry, government, and the citizens. With Odisha GST number, common national markets can be created with uniform tax rates, methods, and remove economic obstacles, paving the way for a national integrated economy.
A GST Registration in Odisha is a destination-based consumption tax. Taxes are collected at every stage of the transaction, and the credit for taxes paid at the earlier stages can be used to offset the taxes that need to be paid at the following stages, thus reducing tax cascading. Input tax credits are cross-utilized, thereby eliminating “tax on tax” and ensuring a tax-neutral supply chain for the industry.
Features of GST Registration in Odisha
In addition to the automatic filing of GST returns, the uploading of invoice level data, and auto-population of information regarding input tax credits (ITC), information matching invoices, automatic withdrawal of input tax credits in the event of a mismatch in information, are just some of the basic features of the GST return process. It is intended that the returns mechanism will make it easier for the taxpayer to file their returns and take advantage of ITCs.
There are two types of returns that general taxpayers need to submit under GST – a monthly return and an annual return. Taxpayers enrolled in the planning scheme, non-resident taxpayers, individuals who are registered as input service publishers, individuals who are responsible for deducting or managing the tax (TDS/TCS), and individuals with Unique Identification Numbers need to submit separate returns. Essentially, a taxpayer is not required to file all types of returns, and it is important to keep this in mind. Depending on the actions that taxpayers initiate, they are required to file returns as a result.
Revenue Increases as a Result
With GST, the economy has been boosted, and the country’s GDP has increased, in the long run. However, GST has also increased the taxpayer base directly by regulating the threshold for liability, and thereby reducing the chances of tax fraud. Also, tax compliance is working to be more comfortable over time, and an online taxation system can provide greater performance and responsibility, which reduces the chances of getting away with tax fraud in the long run.
Businesses Benefit from Simplified Tax Filing
You may find that it takes a lot of time, money, and management right now to adjust to the new GST regime as a company owner. However, in the long run, GST return filing will become a much simpler process. In light of the fact that all major indirect taxes have been solidified, you will no longer be required to manage large departments dedicated to dealing with the previously extensive tax documentation, since all major indirect taxes have been solidified. Furthermore, it has been decided that the start-ups are no longer required to file several individual taxes like VAT and service tax in addition to the company tax.
Certain Items Have Become More Affordable as a Result
Taxes on private taxis have been reduced from 6% to 5%, so as a private taxpayer, you will find that certain products have decreased in value. With a tax of 5%, flying economy class has gotten marginally cheaper. Eating out hasn’t changed much. However, it does depend on the type of enterprise, whether it has air conditioning, whether it serves alcohol, or whether it has a turnover below Rs.50 lakh a year. On the other hand, you will find that businesses that specialize in unprocessed grains like rice and wheat, unprocessed milk, vegetables, seafood, meat, and unbranded flours do not have to pay GST. As a result of this data, you will have the best chance of registering GST returns and charging GST on customers correctly. Therefore, you must be up-to-date on the latest GST updates and deadlines.
- 5% GST, 12% GST, 18% GST, and 28% GST are the GST percentages for various goods and services in Odisha. Some goods do not have any GST rate.
- It is important for the taxpayer to be aware of the GST rate applicable to various categories for GST calculation in Odisha. There are four slabs for GST, 5%, 12%, 18%, and 28%. When the GST rate is 18% for 1,000 and the net price is 1,000, then 1,000 plus (1,000 times (18/100) = 1,000+180 = Rs. 1,180.