publiccg Chhattisgarh NEWS
Related Articles
Over 40,000 Traders to Benefit; Litigation to Reduce in Over 62,000 Cases
Drafts of Chhattisgarh GST Amendment Bill and Arrear Tax Settlement Bill Approved in Cabinet Meeting
Raipur, July 12, 2025 – The Chhattisgarh government is taking significant steps to support small traders and simplify doing business in the state. In a major decision, the state plans to waive Value Added Tax (VAT) liabilities up to ₹25,000 that have been pending for over 10 years. This move is expected to benefit more than 40,000 traders and reduce litigation in over 62,000 cases.
At a cabinet meeting chaired by Chief Minister Shri Vishnu Deo Sai, the government approved the drafts of two important bills:
Chhattisgarh Goods and Services Tax (Amendment) Bill, 2025
Chhattisgarh Arrear Tax, Interest and Penalty Settlement (Amendment) Bill, 2025
These bills are scheduled to be presented during the upcoming Monsoon Session of the State Legislative Assembly.
Key Provisions Approved:
- Waiver of Old VAT Liabilities:
VAT dues of up to ₹25,000 pending for over a decade will be written off. This will aid small traders and significantly reduce pending legal cases. - GST Act Amendments Based on GST Council’s 55th Meeting:
The cabinet approved the inclusion of several GST reforms to align with national recommendations. One major change allows Input Service Distributors (ISDs) to allocate Input Tax Credit (ITC) on Reverse Charge Mechanism (RCM) under IGST to their branch offices—resolving inconsistencies in the current GST framework and improving ease of business. - Appeal Penalty Deposit Reduced:
For cases involving only penalties (without tax demand), the mandatory pre-deposit for filing appeals has been reduced from 20% to 10%, providing relief to the business community. - Tax Clarification on Vouchers:
The “Time of Supply” provision for taxability on vouchers has been removed to address conflicting rulings from different Advance Ruling Authorities and ensure uniformity. - Track and Trace for Demerit Goods:
Based on recommendations of the ministerial group on capacity-based taxation and special composition levy, a track and trace mechanism has been introduced for demerit goods like tobacco. This system will allow effective monitoring of the supply chain from production to end-user. - Relief for SEZ Transactions:
A key amendment excludes certain transactions from GST where goods stored in Special Economic Zone (SEZ) warehouses are bought and sold without physical movement. This aims to promote business in SEZs by keeping such dealings outside the scope of GST.
These reforms reflect the government’s commitment to improving ease of doing business, reducing legal hurdles, and fostering an environment conducive to trade and commerce in Chhattisgarh.
