The State Cabinet on Thursday approved a proposal to enact legislation for implementation of the Good and Services Tax (GST) regime in the State.
The State would levy and collect GST on all goods barring six items, including five petroleum products. The exempted items are petrol, diesel, petroleum crude, ATF, natural gas and alcoholic liquor for human consumption.
The Cabinet meeting, the first one after the recent reshuffle in the Council of Ministers, held under chairmanship of Chief Minister Naveen Patnaik also approved a proposal for amendment of the Odisha Value Added Tax (VAT) Act 2004. The amendment is required since the State has now limited power to levy tax under Odisha VAT Act in view of implementation of GST.
The Cabinet approved a proposal for procurement of ‘Moong Dal’ at ` 52.25 per kg through the Markfed by waiving vat on it. The Government would incur `2 crore on VAT waiver on the dal.
“The Markfed will directly purchase moong from farmers at `52.25 per kg and sell them to Nafed without VAT. In the process the State would suffer loss of `2 crore,” said Chief Secretary AP Padhi.
Similarly, it approved a proposal to increase electricity duty (ED) rate for consumption of electricity from self generation by captive power plants (CPPs).
“The rate of ED for captive consumers and licencees in its own premises are now revised from 30 paise per unit to 55 paise for unit. The revision will help the Government to generate additional revenue to the tune of Rs 875 crore annually to fund electrical infrastructural development schemes being implemented the State,” said Padhi.
Besides, the Cabinet okayed a proposal to set minimum qualification of Plus Two for appointment of VAWs. Till now, Matric was the minimum qualification for the post.
Similarly, it nodded a proposal to amend some OTE and TS Cadre rules in order to bring more talented candidates by direct recruitment to the posts of lecturers in Government engineering, schools and polytechnics through the OPSC.
The Cabinet approved the report of PK Mohanty Commission of Inquiry into police firing at Kalinganaga in Jajpur district on January 2, 2006