The Chhattisgarh government has unveiled a series of measures designed to provide relief to small businesses and modernize its tax regulations. A key initiative includes the waiver of VAT liabilities for small traders, specifically those with outstanding dues up to ₹25,000 that are more than a decade old. This action will benefit more than 40,000 traders and will contribute to the resolution of over 62,000 pending legal cases.
The decisions were reached during a cabinet meeting led by Chief Minister Vishnu Deo Sai, which approved the drafts of the “Chhattisgarh Goods and Services Tax Amendment Bill” and “Chhattisgarh Outstanding Tax, Interest, and Penalty Settlement Amendment Bill 2025.” These bills are set to be presented during the upcoming assembly session.
**Key GST Amendments:**
* **Input Service Distribution Enhancement:** Allows for the distribution of IGST collected under the Reverse Charge Mechanism (RCM) to branch offices.
* **Appeal Fee Reduction:** The required pre-deposit for appeals has been reduced from 20% to 10% in cases involving only penalties.
* **Voucher Taxation Clarification:** The ‘Time of Supply’ provision has been eliminated to ensure uniformity in tax liabilities.
* **Trace and Track Implementation:** A trace and track mechanism will be applied to monitor goods like tobacco, ensuring that the entire supply chain is observed.
* **SEZ Business Promotion:** Transactions occurring in warehouses that do not involve physical movement will be excluded from the scope of GST, which will stimulate the activity within SEZs.
These measures by the state government are expected to improve the ease of doing business for traders and assist in resolving tax disputes.