The Chhattisgarh government has decided to provide significant relief to small traders. VAT liabilities of up to ₹25,000 that are more than 10 years old will now be waived. This decision will benefit over 40,000 traders and also resolve litigation in more than 62,000 pending cases.
This decision was made at a cabinet meeting chaired by Chief Minister Vishnu Deo Sai. The meeting approved the drafts of the “Chhattisgarh Goods and Services Tax Amendment Bill” and the “Chhattisgarh Outstanding Tax, Interest, and Penalty Settlement Amendment Bill 2025.” Both bills will be presented in the upcoming assembly session.
**Key Amendments in GST:**
* **Input Service Distribution Improvements:** Now, IGST taken under RCM (Reverse Charge Mechanism) can also be distributed to branch offices.
* **Relief in Appeal Fees:** In cases where only a penalty is involved and no tax, the pre-deposit required to appeal has been reduced from 20% to 10%.
* **Clarity on Voucher Taxation:** The ‘Time of Supply’ provision has been removed to ensure uniformity in tax liability.
* **Trace and Track Mechanism Implementation:** This system has been implemented to monitor demerit goods like tobacco, ensuring monitoring of the entire supply chain.
* **Exemption in Special Economic Zones:** Business transactions without movement in warehouses have been excluded from GST, which will boost SEZ businesses.
This step by the state government will promote the Ease of Doing Business for traders and is considered a major improvement towards resolving tax disputes.