In a move aimed at supporting small businesses, the Chhattisgarh government is eliminating old VAT liabilities. Specifically, VAT dues of up to ₹25,000, dating back over a decade, will be written off. This initiative is expected to benefit more than 40,000 traders and will also lead to the closure of litigation in over 62,000 cases.
The decision was made during a cabinet meeting led by Chief Minister Vishnu Deo Sai, where the “Chhattisgarh Goods and Services Tax Amendment Bill” and the “Chhattisgarh Outstanding Tax, Interest, and Penalty Settlement Amendment Bill 2025” were approved. These bills are slated for presentation in the upcoming assembly session.
**GST Amendments Include:**
* **Streamlined Input Service Distribution:** Allows for the distribution of IGST under the RCM to branch offices.
* **Reduced Appeal Fees:** The pre-deposit required for appeals has been lowered from 20% to 10% in cases with only penalties.
* **Enhanced Voucher Taxation Clarity:** The ‘Time of Supply’ provision has been removed to create consistent tax liabilities.
* **Traceability for Demerit Goods:** A ‘Trace and Track’ system will monitor goods like tobacco across the supply chain.
* **SEZ Business Boost:** Transactions within warehouses without physical movement will be exempt from GST, stimulating SEZ activity.
The government’s actions are intended to ease business operations for traders and facilitate the resolution of tax-related issues.