Chhattisgarh Government Boosts Small Traders, VAT liabilities up to Rs 25 thousand pending for more than ten years waived off

Chhattisgarh govt waived off “VAT ” liabilities up to Rs 25 thousand in old cases pending for more than 10 years of small trader, so that they will find it easier to do business under the Ease of Doing Business (EoDB). -Symbolic Picture

IN Short

*More than 40 thousand traders will get benefit, litigation will be reduced in more than 62 thousand cases

*Draft of Chhattisgarh Goods and Services Tax Amendment Bill approved in the meeting of the Council of Ministers

*Draft of Chhattisgarh Outstanding Tax, Interest and Penalty Settlement Amendment Bill also approved

Raipur: The Small traders in Chhattisgarh are being encouraged to do their business comfortably. The state government is going to waive off “VAT” liabilities up to Rs 25 thousand in old cases pending for more than 10 years of small traders.

Besides many amendments will also be made in the GST provisions under Ease of Doing Business in Chhattisgarh. In the meeting of the Council of Ministers chaired by Chief Minister Vishnu Deo Sai, the draft of Chhattisgarh Goods and Services Tax Amendment Bill and Chhattisgarh Outstanding Tax, Interest and Penalty Settlement Amendment Bill 2025 has been approved. Both these bills will be tabled in the monsoon session of the Assembly.

More than 40 thousand traders of the state will benefit from the waiver off of VAT liabilities up to Rs 25 thousand older than 10 years. Along with this, the number of cases of more than 62 thousand lawsuits will also be reduced.

The draft of the Chhattisgarh Goods and Services Tax Amendment Bill was also approved in the cabinet meeting chaired by Chief Minister Vishnu Deo Sai . Amendments have been proposed in this draft in accordance with the decisions taken in the 55th meeting of the GST Council.

According to the proposal made, the distribution of Reverse Charge Mechanism (RCM) taken in Integrated Goods and Services Tax (IGST) by input service distributors can now also be done in their branch offices. This will help in removing the anomaly in the GST Act and traders will find it easier to do business under the Ease of Doing Business (EoDB).

Following the another amendment proposal, the pre-deposit amount required for filing an appeal before the appellate authority in cases where the amount of penalty does not include tax demand has been reduced from 20 per cent to 10 per cent. This decision will prove to be a relief for the business world.

The provision of ‘time of supply’ has been deleted while clarifying the position regarding taxability on vouchers in the GST system. There was a difference of opinion among various advance ruling authorities in this regard, hence this amendment was brought for the purpose of uniformity.

On the basis of the recommendation of the Group of Ministers constituted on the subject of Capacity Based Taxation and Special Composition Levy, trace and track mechanism has been implemented for demerit goods like tobacco products, through which the entire supply chain of these products from manufacturing to sale to the final consumer can be effectively monitored.

In cases where goods are stored in warehouses in Special Economic Zones and many times there are purchase and sale transactions without any physical movement, an amendment has been brought to keep such transactions outside the ambit of GST, so as to give a further boost to Special Economic Zones.