Odisha CM Hails GST Reforms as Game-Changer for Farmers, MSMEs, and Middle-Class Families

Odisha Chief Minister Mohan Charan Majhi has welcomed the latest reforms approved by the GST Council, calling them a “direct benefit” to farmers, MSMEs, small traders, and middle-class families.

Speaking after the Council meeting chaired by Union Finance Minister Nirmala Sitharaman, Majhi emphasised that the changes will enhance ease of living and doing business, aligning with India’s development goals for 2047.

Among the key reforms, the tax on kendu leaves—a vital source of income for tribal communities—has been slashed from 18% to 5%, a move Majhi said would boost procurement and ensure fair pricing for collectors.

He also highlighted reduced GST rates on agricultural inputs and machinery, which are expected to lower production costs and strengthen rural incomes.

In the healthcare sector, Majhi praised the exemption of life and health insurance from GST and the rate cuts on life-saving and commonly used medicines, calling them essential for improving affordability and access.

The Chief Minister also supported the merger of compensation cess items into the GST framework and proposed a 50:50 revenue-sharing model between the Centre and States.

He recommended October 31 as the date to abolish compensation cess levies.

Majhi further endorsed simplified GST registration for small and low-risk businesses, noting that it would reduce compliance burdens and encourage formalisation of the informal sector.

“These reforms reflect a citizen-first approach and will accelerate India’s journey toward becoming a developed nation,” Majhi concluded.