Bhubaneswar: Shri Pankaj Lochan Mohanty, Chairman of the Odisha State Development Council, ASSOCHAM has hailed the latest GST reforms as a significant step towards a simpler and more efficient tax system, which he believes will improve cost efficiency and expand opportunities across industrial corridors.
In a statement, Shri Mohanty said the changes are a “welcome move” that will ease operational challenges for businesses, strengthen livelihoods, and create fresh momentum for sustainable, long-term investment.
He noted that the reforms align with broader national efforts to streamline business processes and foster economic growth.
According to Shri Mohanty, a major highlight of the reforms is the rationalization of the GST framework from multiple tax slabs to primarily two: 5% and 18%. ·
Shri Mohanty, who is also the President of Odisha Cricket Association(OCA) said GST on sports goods and toys has been reduced from 12% to 5%. This is a significant move that could make sporting equipment more affordable for consumers, potentially boosting participation in various sports.
He said that GST on footwear and apparel priced up to ₹2,500 has been cut to 5% from the previous structure where only items up to ₹1,000 were in the 5% slab. Since sports attire and shoes are a major part of this category, this reform makes them more accessible, particularly for middle-class consumers and budding athletes. Shri Mohanty is promoting budding talents in cricket.
ASSOCHAM Odisha Chief said the simplification of GST makes a broad range of goods and services more affordable for consumers and businesses alike. He emphasized that this will reduce classification complexities and ease the administrative burden for small and medium enterprises (SMEs), thereby helping them with compliance.
The reforms are expected to directly benefit industrial corridors by addressing the cost of moving goods.
Shri Mohanty pointed out that reductions in GST on goods carriages (trucks), tires, and third-party insurance will lower logistical costs for transporters. This, he said, encourages investment in newer, more efficient vehicles, which is a win-win for both the industry and road safety.
By making essential goods cheaper, the reforms are also set to stimulate consumer demand, which can lead to increased production and job creation. Industries like textiles and footwear, which cater to the mass market, are poised to benefit significantly from the lower tax rates.
Shri Mohanty’s comments underscore a commitment by the government to continuous tax reform, which creates a more predictable and transparent environment crucial for attracting both domestic and foreign investment for long-term projects in industrial zones. He also highlighted that the rationalization of tax rates for construction materials and renewable energy equipment will support infrastructure and green investments.
The Chairman’s remarks also align with a broader national strategy to address potential challenges, such as trade losses from global tariffs, by strengthening domestic consumption. Shri Mohanty has been a key advocate for policies that leverage Odisha’s economic strengths to attract investment and foster development. This includes his advocacy for strategic initiatives like the India-UK Free Trade Agreement and the integration of new technologies, such as AI in manufacturing, to drive the state’s industrial transformation.