TFP Bureau, Raipur, 31 July 2025: The Chhattisgarh government has passed the Goods and Services Tax (Amendment) Bill 2025, a significant move aimed at making trade and commerce in the state more transparent, efficient, and trader-friendly. The amendment is designed to provide legal relief to traders, simplify business procedures, speed up tax dispute resolution, and strengthen the overall state economy.
The bill clarifies provisions related to input tax credit, ensuring greater transparency in tax payments and credit usage. It clearly defines special category transactions, including those involving Special Economic Zones (SEZs), exports, and warehouse circulation. Several technical and procedural adjustments have been made in alignment with the Central Government’s amendments to the Finance Act, 2025.
A key change includes amendments to the Input Service Distributor Rules, permitting the distribution of input tax credit received under the reverse charge mechanism among branches for Integrated GST (IGST). This correction addresses anomalies in the GST Act and promotes ease of doing business.
The penalty for filing an appeal before the appellate authority has been eased, reducing the mandatory pre-deposit from 25% to 10%, excluding tax demand. The bill also resolves ambiguity regarding GST on vouchers, specifying that tax will be levied when vouchers are redeemed, not at issuance.
For stricter supply chain monitoring, a track and trace mechanism will be implemented for products like tobacco. All unit packets must bear a QR code with detailed product and transaction information accessible to investigating agencies. Manufacturers and wholesalers will be required to maintain movement records of these packets.
The amendment exempts GST on purchase and sale of goods stored in SEZ warehouses without physical movement before export, a step to boost investment and competitiveness in these zones. Additionally, the bill refines terminology such as substituting ‘plant and machinery’ for ‘plant or machinery,’ clarifying that ‘plant’ excludes buildings and is not eligible for input credit. The bill also introduces provisions for unique identification markings like digital seals and signatures.
Chhattisgarh’s GST Achievements
In the fiscal year 2024-25, Chhattisgarh recorded GST revenues of Rs 16,299 crore, accounting for 38% of the state’s total tax revenue and achieving an 18% growth rate — the highest in the country. The e-way bill limit for intra-state goods transportation has been raised from Rs 50,000 to Rs 1,00,000, providing relief to 26% of small traders by reducing paperwork.
Since the current government took office, 43,612 new GST registrations have been completed. The registration process has been streamlined, cut down from 13 days to just 2 days. GST offices have expanded from 15 to 33 districts across the state. To further curb tax evasion, the government has established Artificial Intelligence, Data Analytics, and Business Intelligence units.
This amendment bill is expected to reinforce Chhattisgarh’s position as a growing hub for trade and commerce, paving the way for enhanced business confidence and economic prosperity.
