The announcement by the GI registry has apparently drawn the curtain over an intense two-and-a-half year battle between the two states over the origin of the popular ball-shaped sweet made from cottage cheese.
West Bengal Chief Minister Mamata Banerjee, now in London, called it a "sweet news".
The Odisha government has said it would continue its battle to get the Geographical Indication (GI) tag for 'rasagola', as it calls the iconic sweet.
The dispute began in 2015 when Odisha claimed that rosogolla originated in the state 600 years ago and was first served at the 12th-century Lord Jagannath temple in Puri.
The Odisha government set up three committees to look into the evidence regarding the origin of rosogolla in Odisha and its Science and Technology Minister Pradip Kumar Panigrahi claimed that more than one committee had pointed to "conclusive evidence" that "rasagola" (as the sweet is spelt in that state) was first made in Pahelgram close to Bhubaneswar.
The Odisha government moved an appeal to the central government's patent office claiming rights over rosogolla, and started a social media campaign to celebrate its origin.
The confectioners of Odisha also organised an exhibition to make people aware of the state's claim over rosogolla.
Countering Odisha's claim, the Bengal government applied for GI tag from the GI registry in Chennai, asserting there was "ample" documentary evidence to prove the sweet belongs to Bengal and was invented by famous sweetmeat maker Nabin Chandra Das in 1868.
The GI registry arrived at Tuesday's decision after holding multiple hearing at its office in the city's satellite township Salt Lake.