Incentive for small traders: VAT dues up to Rs 25,000 pending for more than ten years will be waived
More than 40 thousand traders will benefit, litigation will be reduced in more than 62 thousand cases
Draft of Chhattisgarh Goods and Services Tax Amendment Bill approved in the cabinet meeting
Draft of Chhattisgarh Arrears Tax, Interest and Penalty Settlement Amendment Bill also approved
Raipur, July 12, 2025/ Small traders in Chhattisgarh are being encouraged to do their business easily. The state government is going to waive VAT dues up to Rs 25,000 in old cases of small traders pending for more than 10 years. Along with this, many amendments will also be made in the GST provisions under Ease of Doing Business in Chhattisgarh. The draft of Chhattisgarh Goods and Services Tax Amendment Bill and Chhattisgarh Arrears Tax, Interest and Penalty Settlement Amendment Bill 2025 has been approved in the cabinet meeting held under the chairmanship of Chief Minister Shri Vishnu Dev Sai. Both these bills will be tabled in the monsoon session of the assembly. Waiving VAT dues of up to Rs 25,000 for more than 10 years will benefit about 40 thousand traders of the state. Along with this, the cases of more than 62 thousand lawsuits will also be reduced.
The draft of Chhattisgarh Goods and Services Tax Amendment Bill was also approved in the cabinet meeting held under the chairmanship of Chief Minister Shri Sai. Amendments have been proposed in this draft in accordance with the decisions taken in the 55th meeting of the GST Council. According to the proposal, the distribution of RCM taken in IGST by Input Service Distributors can now also be done in their branch office. This will help in removing the discrepancy in the GST Act and will make it easier for traders to do business under Ease of Doing Business.
According to another amendment proposal, the required pre-deposit of 20 percent amount for filing an appeal before the appellate authority in cases where the tax demand is not included in the penalty amount has been reduced to 10 percent. This decision will prove to be convenient for the business world.
The provision of ‘Time of Supply’ has been deleted, clarifying the position regarding tax liability on vouchers in the GST system. There was a difference of opinion in various Advance Ruling Authorities in this regard, hence this amendment was brought for the purpose of uniformity.
Based on the recommendation of the Group of Ministers constituted on the subject of Capacity Based Taxation and Special Composition Levy, a trace and track mechanism has been implemented for demerit goods like tobacco products, through which effective monitoring of the entire supply chain of these products from manufacturing to sale to the end consumer can be done.
Amendments have been brought in to keep transactions in cases where goods kept in warehouses of special economic zones are bought and sold many times without physical movement, so that special economic zones can be further promoted.