In a move to support small businesses, the Chhattisgarh government has decided to waive VAT dues up to ₹25,000 that are more than a decade old. This initiative is expected to assist over 40,000 traders and alleviate the pressure of more than 62,000 pending cases. The decisions were made during a cabinet meeting headed by Chief Minister Vishnu Deo Sai.
The cabinet approved two significant bills: the Chhattisgarh Goods and Services Tax (Amendment) Bill 2025 and the Chhattisgarh Arrears Tax, Interest, and Penalty Settlement (Amendment) Bill 2025. These bills will be tabled in the upcoming monsoon session of the assembly. The amendments aim to streamline business operations for small traders and foster a more conducive environment for business.
Changes have been made in the GST framework. Input Service Distributors will now be allowed to distribute IGST through the Reverse Charge Mechanism (RCM) across their branch offices. Furthermore, the requirement for depositing 20% for filing appeals has been reduced to 10%. The ‘time of supply’ regulations have been removed to eliminate discrepancies. The government is also introducing a track and trace mechanism for products like tobacco and has excluded transactions within Special Economic Zones (SEZs) from the GST net.