Odisha Chief Minister Mohan Charan Majhi, Wednesday, stated that the GST Council’s recent approvals and reforms will directly benefit farmers, MSMEs, small traders and middle-class families.
He made these remarks after attending the 56th GST Council meeting in New Delhi, which was chaired by Union Finance Minister Nirmala Sitharaman.
Taking to his X handle, the Odisha CM wrote, “The Council approved relief in GST on life & 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.”
“Attended the 56th GST Council Meeting in New Delhi today, chaired by Union Finance Minister Smt. @nsitharaman ji, with participation from Union & State representatives. The deliberations focused on simplifying GST to make the tax system more effective and people-friendly,” he said.
Stating that the reforms place citizens at the core, ensuring ease of living, ease of doing business and accelerating India’s progress towards becoming a Developed Nation by 2047, CM Majhi said, “The rate rationalisation proposal of the Group of Ministers is a welcome move that will benefit the common man and will ease compliance, lower business costs, and make India’s tax system simpler and more efficient.”
Majhi highlighted that the council approved GST relief on a variety of items, such as life and health insurance, agricultural inputs, farm machinery, and life-saving medicines. These measures, along with the rationalization of rates to support tribal livelihoods, are intended to make insurance more accessible and ease the financial burden on farmers by lowering production costs.
“This will make insurance more accessible for middle- and lower income groups and improve insurance penetration in India,” he said.
He expressed his full support for the proposed rate rationalization by the Group of Ministers, noting that it will simplify the tax system, lower business costs, and benefit the common person.
“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,” he said.
Further, he said the date for abolition of levy of compensation cess may be kept as October 31.
Majhi specifically pointed out that reducing the tax on kendu leaves from 18 per cent to 5 per cent will particularly help Odisha’s tribal communities by increasing the volume of sales and securing a higher price for their produce.
“I strongly endorse the proposal of the GoM on rate rationalisation. This will particularly benefit our tribal communities engaged in kendu leaf collection in Odisha,” he stated.
Stating that the agriculture sector is the backbone of the economy, CM Majhi said the proposed rate reduction in agricultural inputs, machinery and others 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 added.
While strongly supporting all the proposals of the law committee, he stated that the rate reduction in the pharma sector, especially on life-saving and commonly used drugs, will make treatment more affordable for patients.
Additionally, the Chief Minister endorsed the simplified GST registration scheme for small and low-risk businesses, which will offer a hassle-free online registration process.
“It will save their time, reduce compliance cost and encourage them to join the formal economy. This scheme will also strengthen trust between taxpayers and the government,” he said.
