Entry Tax in Odisha

The Odisha Entry Tax Rule, 1999, governs entry tax in Odisha. The goods on which entry tax is levied in Odisha are those that are transported into the state from another state for the purpose of consumption or distribution within Odisha. 

Note: Entry Tax has been replaced by the Goods and Services Tax(GST) starting 1 July 2017

Entry Tax:

If you are an individual residing in India earning income, you will be familiar with many taxes such as professional tax, VAT, etc. Most of the taxes are levied by the state government of a particular state and the tax rate levied varies from state to state and that is the same case with Entry tax. Entry tax is levied by the state government on the movement of good from one state to another state. The entry tax is levied only on transportation of certain goods.

Overview of Entry Tax in Odisha

Entry Tax in Odisha is levied based on the Odisha Entry Tax Rule, 1999. The entry tax levied on the goods transported depends on the type of goods. Some of the goods that are transported to Odisha are exempted from tax.

List of Goods Exempted from Entry Tax in Odisha

Given below is a list of important goods that are exempted from entry tax in Odisha. The below mentioned goods are exempted from entry tax only if they are going to be used as raw material directly in the manufacture of goods to be exported out of the territory of India.

  • Coal
  • Cotton yarn
  • Crude petroleum oil
  • Silk fabric and silk yarn
  • Kerosene
  • Gunny bags
  • Paper
  • Tobacco and Tobacco products
  • Sugar
  • Spices such as Jeera and Dhaniya
  • Sanitary wares and fittings
  • Paints and varnishes
  • Pepper and other spices
  • Pan masala
  • Betel nuts
  • Raw and processed prawn
  • Timber
  • Agricultural machinery
  • Vegetable oil
  • Adhesives
  • Incense sticks
  • Leather goods except footwear
  • Loose and packed tea/coffee
  • Arms, rifles and pistols
  • Soap
  • Detergent
  • Cosmetic products
  • Typewriting machine

Rate of Entry Tax on Goods in Odisha

The goods are divided into three schedules when it comes to entry tax in Odisha and tax is levied on the goods accordingly. Listed below is the rate of tax charges for goods under different schedules under the Odisha Entry Tax rule.

Part 1:

Goods specified under Part 1 of the schedule to the act are eligible for Entry tax at the rate of 1% of the purchase value of the product. Listed below are some of the goods which qualify for entry tax under this schedule.

  • Furnace oil
  • Petrol
  • Paper including newsprint
  • Tobacco products
  • LPG and other gases
  • Telephone and accessories
  • Aero planes, spare parts and accessories
  • Raw rubber and rubber byproducts
  • Computer parts and accessories
  • Jewelry made out of precious metals

Part 2:

Goods specified under part 2 of the Schedule are eligible for tax at the rate of 2% of the purchase value.Listed below are some of the important products under the schedule.

  • Electrical goods
  • Textile products
  • Electrical appliances
  • Mobile telephone and other spare parts
  • Clocks and watches
  • Motor vehicles

Part 3:

The goods under part 3 of the schedule are eligible for tax at the same rate as stated by the Government of Odisha subject to a maximum of 12%. Listed below are the goods that fall under part 3 of the schedule.

  • Copier
  • Xerox machine
  • Motor vehicles, two wheelers and three wheelers
  • Marble, tiles, decorative stones
  • Air conditioners and coolers

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