TFP Bureau, Raipur, July 26, 2024: The Chhattisgarh Goods and Services Tax (GST) Amendment Bill 2024 was unanimously passed in the state assembly today. Presented by Finance and Commercial Tax Minister Shri OP Choudhary, the bill aims to streamline tax processes and enhance compliance.
During the assembly session, Shri Choudhary highlighted that the implementation of GST has led to a substantial increase in the number of registered businesses, rising by over 50 lakh. The GST, which consolidates various taxes, has simplified the tax structure and improved economic activity.
The amendment, approved by the state cabinet on July 19 under the chairmanship of Chief Minister Shri Vishnu Dev Sai, aligns with the recommendations of the GST Council and the Central Government’s GST Amendment Act, 2024. Key changes include the distribution of input tax credit through the Input Service Distributor and imposing a Rs 1 lakh fine for non-registration of tobacco manufacturing machines.
Shri Choudhary explained that these amendments are designed to facilitate business operations and ensure an increase in tax revenue. He emphasized the importance of the GST Council, chaired by the Union Finance Minister and comprising finance ministers from all states, in making collective decisions to enhance the tax system.
The amendment also addresses the compliance burden in the tobacco product manufacturing sector, mandating the registration of all machines and imposing penalties for non-compliance. This measure aims to reduce revenue leakage in this sector.
Since the introduction of GST on July 1, 2017, the tax base has expanded, bringing many informal businesses into the tax net and increasing government revenue. The online system for GST registration, return filing, and payment has made compliance easier and more transparent.
In his address, Shri Choudhary noted that the number of registered businesses in Chhattisgarh has grown from 1.28 lakh to 1.80 lakh, with significant improvements in the registration process and revenue collection. The state has also benefited from central compensation for revenue shortfalls due to GST implementation, receiving a total of Rs 21,679 crore from April 2018 to June 2022.
To further support businesses, the state has established an Ease of Doing Business (EODB) cell in the Commercial Tax Department, launched an “e-Scrutiny” portal for monitoring and resolving tax issues, and formed a Business Intelligence Unit to detect tax evasion using advanced technologies.
The assembly session saw participation from MLAs Umesh Patel and Raghavendra Singh, who supported the GST Amendment Bill 2024. Following a detailed discussion, the bill was passed unanimously, marking another step towards improving the state’s tax administration and economic growth.
