GST Reforms to Boost Odisha’s Tribal Economy, Says CM Majhi

Tax cut on kendu leaf, farm relief and insurance exemption to benefit lakhs of families

Sep 4, 2025 - 14:08
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GST Reforms to Boost Odisha’s Tribal Economy, Says CM Majhi

Bhubaneswar : Odisha Chief Minister Mohan Charan Majhi has welcomed the new two-tier Goods and Services Tax (GST) framework, calling it a major step towards achieving Prime Minister Narendra Modi’s vision of *Vikshit Bharat* by 2047. Majhi attended the 56th GST Council meeting in New Delhi, chaired by Union Finance Minister Nirmala Sitharaman.

The CM said the reforms—covering life and health insurance, agricultural inputs, farm machinery and life-saving medicines—would directly benefit farmers, MSMEs, small traders and middle-class families. He highlighted the tax cut on kendu leaf from 18% to 5% as a landmark decision for Odisha, helping thousands of tribal families earn better returns through both government procurement and private sales.

Majhi also welcomed GST relief on farm inputs, saying it would reduce production costs and strengthen rural incomes. The exemption of life and health insurance premiums, he noted, would improve financial security for middle- and lower-income households.

The CM further supported simplified online registration for traders and equitable sharing of Compensation Cess between the Centre and states. He said these reforms would reduce compliance costs, boost entrepreneurship and ensure inclusive growth for Odisha.

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