Odisha CM Majhi lauds new two-tier GST framework as key to economic growth

Bhubaneswar: CM Mohan Charan Majhi on Thursday hailed the newly proposed two-tier GST framework as a “major step” toward realising Prime Minister Narendra Modi’s vision of a Viksit Bharat by 2047.Addressing a news conference in New Delhi, Majhi said the sweeping reforms would accelerate economic growth, ease burdens on the common citizen, and strengthen India’s tax architecture.“The historic decisions taken today will foster a free and transparent economy, reduce compliance costs, and empower small businesses,” Majhi said, endorsing the GST Council’s move to simplify rates into two slabs — 5% and 18% — while eliminating the 12% and 28% brackets.Among the key reforms, Majhi welcomed the exemption of health and life insurance from GST, calling it a boost for middle- and lower-income families. He also celebrated the reduction of GST on kendu leaves from 18% to 5%, a move that will benefit thousands of tribal collectors in Odisha by improving sales and ensuring fair compensation.Highlighting Odisha’s agrarian economy, the CM said the reduction in GST on agricultural inputs — such as irrigation machinery, tractors, and fertilisers — would lower production costs and enhance rural incomes.

He also praised the removal of compensation cess on all items except pan masala, bidi and tobacco products, effective from Sept 22.“Other notable measures include GST cuts on over 150 items, including medicines, dairy products and household goods, tax exemption on packaged paneer, pencils, erasers, maps and atlases, reduction in GST on cement from 28% to 18%, aiding the construction sector and lower taxes on small cars, two-wheelers and three-wheelers, which would go a long way to further ease people’s life,” he said.Majhi emphasised simplified registration for startups and small businesses, with automatic approval within three days.