New Delhi/Bhubaneswar, Sept 4: Union Education Minister Dharmendra Pradhan on Thursday hailed the 56th GST Council meeting as a historic turning point for Indian economy, calling the reforms “next-generation” and “citizen-centric.”

Addressing a press conference in New Delhi, Pradhan emphasized that the revised GST structure will fulfill the aspirations of ordinary citizens and instill greater economic confidence across society.

The Council, chaired by Finance Minister Nirmala Sitharaman, scrapped the 12% and 28% slabs and introduced a simplified two-tier system of 5% and 18%, along with a new 40% slab for luxury and sin goods. Pradhan stated that this rationalization will make essential goods more affordable and ease the financial burden on students, farmers, MSMEs, and middle-class families.

Pradhan described the reforms as a festive gift from the Modi government ahead of Dussehra and Diwali, adding that the changes will stimulate circular economic activity, increase purchasing power, and boost production and raw material usage. “This is not just tax reform—it’s a social and economic transformation,” Pradhan said.

Also Read: GST Reforms To Boost Odisha’s Economy And Tribal Welfare: Dharmendra Pradhan

Odisha-Specific Benefits

Minister Pradhan highlighted that Odisha stands to gain significantly from the revised GST structure:

Kendu Leaves: GST on kendu leaves has been reduced from 18% to 5%, benefiting over 15 lakh tribal workers and small traders who rely on this forest produce for their livelihood.

Textile Sector: GST on yarn has been slashed from 12% to 5%, offering relief to weavers, especially in western Odisha.

Coal Revenue: With GST on coal increased to 18%, Odisha’s revenue share from coal production is expected to rise from 2.5% to 9%, enhancing the state’s fiscal strength.

Agriculture and Education Gains

As an agrarian state, Odisha will benefit from reduced GST on agricultural equipment such as irrigation tools, tractors, and fertilizer components. Pradhan noted that these changes will lower input costs and ease the financial burden on farmers.

In the education sector, GST exemptions have been extended to learning aids, books, and related services, making institutional education more accessible. Health and life insurance services have also been exempted from GST, further supporting citizens’ well-being.

Also Read: GST 2.0: What Gets Cheaper And Costlier From Sep 22

Economic Formalization and Growth

The Minister cited data showing that GST registration has grown from 67 lakh businesses in 2017 to 1.5 crore in 2025, reflecting increased formalization of the economy. GST collections have doubled from ₹11 lakh crore in 2020 to ₹22 lakh crore in 2024–25, which he attributed to the Modi government’s long-term vision.

Pradhan also expressed his gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for their leadership in implementing these reforms, which he believes will usher in a new era of simplified taxation, inclusive growth, and ease of living.

Argus News | argus news | Odisha Latest News, Breaking News, Trending News, Live TV