The Commissionerate of Commercial Tax & Goods and Services Tax (CT & GST), Finance Department, Government of Odisha, has notified 149 dealers for assessment in lieu of audit under Section 42A of the Odisha Value Added Tax (OVAT) Act, 2004, for the tax periods from April 1, 2024, to March 31, 2025 (FY 2024-25). The Department has also issued detailed procedural instructions to ensure timely initiation and completion of assessments in accordance with the applicable statutory provisions.
Notification of 149 Dealers for Assessment under Section 42A
Vide Notification No. 14761/CT&GST dated October 26, 2026, issued in exercise of the powers conferred under Section 42A(1) of the OVAT Act, 2004, Smt. Yamini Sarangi, IAS, Commissioner of Sales Tax, Odisha, has notified 149 dealers for assessment under Section 42A of the Act and the rules framed thereunder.
The notification contains a comprehensive schedule identifying the selected dealers, their Taxpayer Identification Numbers (TINs), and the respective CT & GST Circles having jurisdiction over them. The notified dealers include entities engaged in petroleum, natural gas, liquor and other businesses dealing in specified non-GST goods.
Detailed Instructions Issued for Assessment Proceedings
Subsequently, through Instruction Letter No. 14787/CT&GST dated October 26, 2026, the Commissionerate issued instructions to all CT & GST Territorial Range Heads and Circle Heads regarding completion of assessments in lieu of audit under Section 42A of the OVAT Act, 2004, read with Rule 49A of the OVAT Rules, 2005.
The Department has directed that the Additional Commissioner of the respective CT & GST Territorial Range shall assign the notified dealers to the appropriate Assessing Authority, as defined under Section 2(4) of the OVAT Act, within seven days of issuance of the notification. Thereafter, the designated Assessing Authority must immediately issue notices to the concerned dealers and complete the assessment proceedings in accordance with the prescribed statutory provisions.
Additional Dealers May Be Proposed Within 15 Days
The instructions further clarify that where any dealer, other than those already notified, is dealing in the six specified non-GST goods and is proposed to be assessed under Section 42A, the concerned Circle Head must forward a duly justified proposal through the Range Head to the Commissioner within 15 days of the notification.
This mechanism enables the Department to consider additional dealers for assessment beyond those specifically identified in the original notification, subject to submission of appropriate justification.
Jurisdictional Changes to Be Addressed Without Delay
The Department has also prescribed a procedure for cases where a notified dealer presently falls under the territorial jurisdiction of a different CT & GST Circle. In such situations, the concerned Range Head must immediately inform the Range Head having current jurisdiction over the dealer, while simultaneously intimating the Commissioner’s office.
The jurisdictional Range Head is required to assign the dealer’s assessment case without delay, thereby facilitating proceedings before the appropriate Assessing Authority.
Entire Assessment Process to Be Conducted Manually
Importantly, the Department has expressly instructed that all assessment-related actions shall be carried out manually, including assignment of cases by the Range Head to the Assessing Authority, issuance of notices and issuance of assessment orders.
Accordingly, the notified assessments are to follow the manual procedure prescribed in the departmental instructions.
Assessment Restricted to Six Specified Non-GST Goods
A significant clarification in the instructions relates to the scope of assessment proceedings. The Department has stated that assessments under Section 42A are to be undertaken exclusively on the basis of transactions involving the following six non-GST goods:
- Motor Spirit (MS)
- High-Speed Diesel (HSD)
- Aviation Turbine Fuel (ATF)
- Petroleum Crude
- Natural Gas
- Alcohol for Human Consumption
The instructions categorically provide that only sales liable to VAT and Central Sales Tax (CST) are to be assessed under these proceedings.
The Department has specifically clarified that sales of other products by petroleum dealers, such as lubricants and other GST-taxable items, do not require detailed verification under the notified VAT assessment exercise, since such supplies fall under the GST regime.
Implications for Dealers and Tax Authorities
The two communications establish a coordinated framework for undertaking assessments of the selected dealers for FY 2024-25. While the notification identifies the dealers liable to assessment, the accompanying instructions prescribe responsibilities, timelines, jurisdictional coordination and the manner of conducting proceedings.
The key significance is the Department’s clear restriction of these assessments to VAT/CST transactions involving specified non-GST goods, while excluding detailed examination of GST-taxable supplies from this exercise.
The measures are expected to facilitate focused assessment proceedings under the OVAT framework, with clear administrative accountability for the concerned tax authorities.
For Notification Click Here & Instructions Click Here
