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Odisha CM Shri Mohan Charan Majhi highlighted the recent GST Council approvals, emphasizing benefits for farmers, MSMEs, small traders, and middle-class families. The Council approved tax reliefs on life and health insurance, agricultural inputs, farm machinery, and essential medicines, alongside measures to support tribal livelihoods. Majhi supported rate rationalisation, compensation cess reforms, and the simplified GST registration for small businesses. He also pointed out sector-specific benefits, including reduced tax on Kendu leaves for tribal communities, lower agricultural production costs, and more affordable medicines, framing the reforms as steps toward economic efficiency and inclusive growth.
Odisha Chief Minister Shri Mohan Charan Majhi recently emphasized that the latest approvals and reforms by the GST Council will directly benefit farmers, MSMEs, small traders, and middle-class families. He made these remarks while attending the 56th GST Council meeting in New Delhi, chaired by Union Finance Minister Nirmala Sitharaman. Advertisement
Majhi noted that the Council approved relief in GST for life and health insurance, agricultural inputs, farm machinery, and life-saving medicines, along with rationalisation measures designed to support tribal livelihoods. He explained that these reforms are citizen-centric, promoting ease of living, facilitating business operations, and contributing to India's long-term goal of becoming a developed nation by 2047.
He welcomed the rate rationalisation proposed by the Group of Ministers, stating it would ease compliance, reduce business costs, and simplify the tax system. Majhi also expressed his support for the exemption of life and health insurance, highlighting that it would make insurance more accessible to middle- and lower-income groups, thereby increasing insurance penetration in the country.
Addressing Compensation Cess matters, he supported merging items currently under the cess and suggested that any surplus in the compensation cess account could be shared equally between the Centre and states. Within states, distribution could be based on each state's GST revenue share from the base year formula. He also agreed with the proposed abolition of the levy of compensation cess by the end of October.
The Chief Minister pointed out that the rate reduction from 18% to 5% on Kendu leaves will particularly benefit tribal communities in Odisha. This adjustment is expected to increase sales volume through government procurement agencies, providing higher earnings for workers in de-regulated areas.
Majhi further highlighted that agriculture is the backbone of the economy, and reducing taxes on agricultural inputs and machinery will ease financial pressure on farmers, lower production costs, and make essential items more affordable. He also supported tax reductions in the pharmaceutical sector, particularly for life-saving and commonly used drugs, which will make treatment more accessible for patients.
He underscored that the simplified GST registration scheme for small and low-risk businesses will provide a hassle-free online approval process for small traders, start-ups, and self-employed individuals. According to him, this will save time, reduce compliance costs, encourage formal economic participation, and strengthen trust between taxpayers and the government.
Source PTI
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