Bhubaneswar: Chief Minister Mohan Majhi has hailed the new two-tier Goods and Services Tax (GST) framework, calling it a major step towards fulfilling Prime Minister Narendra Modi’s vision of Vikshit Bharat by 2047.
“The Council approved relief in GST on life and health insurance, agri-inputs, farm machinery and life-saving medicines, along with rationalisation to support tribal livelihoods. These reforms will directly benefit farmers, MSMEs, small traders and middle-class families,” Majhi said while attending the 56th GST Council meeting in New Delhi, chaired by Union Finance Minister Nirmala Sitharaman.
He further noted that the rate rationalisation proposal of the Group of Ministers will benefit the common man and will ease compliance, lower business costs, and make India’s tax system simpler and more efficient.
The CM particularly mentioned the tax reduction from 18 per cent to 5 per cent on kendu leaf in context with Odisha. “It will immensely benefit the primary procurers belonging to the marginal sections of the society with better prices and sales. The tax cut will lead to an increase in the volume of sales of kendu leaves through government procurement agencies and help the leaf collection workers in getting higher prices from vendors in the deregulated areas.”
He said that the decision to exempt life and health insurance premiums for individuals from GST will make insurance more accessible for middle and lower income groups and improve its penetration in India.
The CM also welcomed the merger of items, which are currently subject to compensation cess in the GST framework. “Surplus in the Compensation Cess account may be shared between the Centre and States in the ratio of 50:50. Among states, it may be distributed based on each state’s share of GST revenue calculated on the base year formula. Further, the date for abolition of levy of Compensation Cess be kept as 31.10.2025,” he said.
He said the proposed rate reduction in agricultural inputs and machinery will ease the financial burden on farmers, lower production costs, and make essential items more affordable. “This step will encourage growth in the sector, strengthen rural income and contribute to food security for the nation.”
He also strongly backed easy online registration for small traders, startups, and self-employed.
