The Chhattisgarh government has unveiled a series of measures to support small traders and boost economic activity. The government has decided to waive VAT liabilities up to ₹25,000 that are over 10 years old, which will benefit over 40,000 traders. This also aims to alleviate the burden of more than 62,000 pending cases.
The decisions were made during a cabinet meeting chaired by Chief Minister Vishnu Deo Sai. The cabinet approved the Chhattisgarh Goods and Services Tax (Amendment) Bill 2025 and the Chhattisgarh Arrears Tax, Interest, and Penalty Settlement (Amendment) Bill 2025, which will be presented in the monsoon session. These bills seek to simplify business processes and improve the ease of doing business for small traders.
Furthermore, several amendments to GST provisions were approved, including allowing Input Service Distributors to use the RCM of IGST in their branch offices. The deposit requirement for appeals, where no tax demand is involved, was reduced from 20% to 10%. Also, the “time of supply” regulations have been removed. The government also plans to implement a track and trace mechanism for demerit goods like tobacco and exclude transactions within Special Economic Zones (SEZs) from GST.