TFP Bureau, Raipur, July 12, 2025: In a significant step to boost ease of doing business, the Chhattisgarh government has decided to waive pending VAT dues up to ₹25,000 in cases older than 10 years, benefiting over 40,000 small traders statewide. The move is expected to ease litigation in more than 62,000 cases, reducing compliance burdens and encouraging trade.
The decision came during a cabinet meeting chaired by Chief Minister Shri Vishnu Deo Sai, where the drafts of the Chhattisgarh Goods and Services Tax (Amendment) Bill 2025 and the Settlement of Outstanding Tax, Interest and Penalty (Amendment) Bill 2025 were also approved. These bills will be introduced in the upcoming monsoon session of the State Assembly.
Key provisions of the GST amendment include allowing Input Service Distributors (ISDs) to distribute IGST received under Reverse Charge Mechanism (RCM) to branch offices, addressing existing regulatory gaps and improving operational efficiency for businesses.
The government also proposed relief in penalty-only cases without any tax demand by reducing the mandatory pre-deposit for appeals before the appellate authority from 20% to 10%, offering much-needed support to the business community.
To ensure consistency, the amendment removes the ‘Time of Supply’ provision related to taxability on vouchers, resolving conflicting interpretations among Advance Ruling Authorities.
Further, the bill introduces a trace and track system for demerit goods like tobacco, enabling real-time monitoring from production to sale and strengthening compliance.
Another significant change excludes Special Economic Zone (SEZ) warehousing transactions from the GST framework, facilitating smoother trade where goods are exchanged multiple times without physical movement.
These measures reflect the state government’s commitment to creating a business-friendly environment while ensuring tax compliance and transparency.
