GST Reforms: A Boon for Farmers and Small Traders

Odisha Chief Minister Mohan Charan Majhi emphasized on Wednesday that the recent GST Council approvals are set to directly aid farmers, MSMEs, smaller traders, and middle-class families.

During the 56th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman in New Delhi, Majhi explained that the approved reforms include tax relief on life and health insurance, agri-inputs, farm machinery, and essential medicines. These modifications are intended to place citizens' needs at the forefront, facilitating both ease of living and doing business in India, thereby driving the country's journey towards becoming a developed nation by 2047. The approved rate rationalization proposal particularly aims to benefit common citizens by easing compliance and reducing business expenses, ensuring a more straightforward and efficient tax system.

Majhi also voiced support for the Union Government's proposals, including the exemption of life and health insurance, which aims to enhance accessibility for lower-income groups, thereby increasing insurance penetration. The Chief Minister welcomed the GST framework's compensation cess adjustments, suggesting that surplus funds be divided equally between the Centre and States. Notably, the tax reductions in agriculture and the pharmaceutical sector are set to bring down product costs, benefitting farmers and patients significantly. Furthermore, the simplified GST registration initiative is poised to make entering the formal economy more attractive for small traders and entrepreneurs.

(With inputs from agencies.)