Odisha Assembly thanks centre for implementing “Next-Generation” GST

Bhubaneswar, Sep 23 (UNI) The Odisha Assembly today adopted a resolution moved by Chief Minister Mohan Charan Majhi, expressing gratitude to the Central Government for implementing the “Next-Generation” Goods and Services Tax (GST) for the benefit of the people of India.

The resolution was passed by voice vote in the absence of the Opposition BJD and Congress, who had earlier staged a noisy walkout, accusing the BJP government of throttling democracy, undermining the Panchayati Raj system, and failing on multiple fronts.

The House also resolved to recommend that the State Government convey this appreciation to the Centre for the landmark reform.

Moving the resolution, the Chief Minister said the “Next-Generation” GST reforms will streamline India’s tax system.

He described the reforms as not merely amendments but a transformative overhaul designed to reshape the economic landscape—simplifying the tax structure, reducing rates on essential items, and boosting growth.

Elaborating on the reforms, effective from September 22, 2025, Majhi said the earlier multi-tiered tax system has been replaced with a three-rate structure.

Most goods and services now fall under either the 5 per cent or 18percent slab, while luxury and “sin” goods are taxed at a higher 40percent rate.
The resolution highlighted that many daily-use items have had their GST rates reduced or eliminated, providing relief to consumers.

Essential food items such as milk, bread, pulses, and unbranded rice and wheat are now tax-free. These measures aim to stimulate consumption by making products more affordable.

For businesses, especially MSMEs and start-ups, the simplified structure is expected to lower compliance costs.
It further stated that the higher 40percent tax on luxury and “sin” goods—including aerated drinks, high-end vehicles, and tobacco—would help balance revenue.
The resolution also noted specific sectoral benefits, such as GST exemption on individual life and health insurance policies.

Calling the reform a “game changer,” the resolution said the Next-Gen GST is designed to create a more transparent tax system, drive consumption, expand the tax base, and build a growth-oriented economy—ultimately benefiting businesses, consumers, and the nation as a whole.