The Chhattisgarh government has announced significant measures to support small businesses and streamline taxation. A key decision involves the waiving of VAT liabilities for small traders, specifically those with outstanding dues up to ₹25,000 that are over 10 years old. This move is poised to assist more than 40,000 traders, alongside bringing an end to legal battles in over 62,000 pending cases.
The decisions were finalized during a cabinet meeting presided over by Chief Minister Vishnu Deo Sai, approving 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 scheduled to be introduced in the forthcoming assembly session.
**Changes in GST Include:**
* **Improved Input Service Distribution:** The reform enables IGST collected under the Reverse Charge Mechanism (RCM) to be distributed to branch offices.
* **Lower Appeal Fees:** Where only penalties are involved, the prerequisite deposit to file an appeal has been reduced from 20% to 10%.
* **Tax Clarity with Voucher System:** The ‘Time of Supply’ provision has been removed, aiming to standardize tax liabilities.
* **Track and Trace for Demerit Goods:** A tracking mechanism is implemented for monitoring demerit goods like tobacco to ensure complete supply chain oversight.
* **Special Economic Zone Exemption:** Transactions within warehouses that don’t involve physical movement will be excluded from GST, thus fostering SEZ operations.
This initiative by the state government is designed to facilitate a better ‘Ease of Doing Business’ for traders while concurrently working towards resolving tax disputes.
