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, 12 July 2025: Small traders in Chhattisgarh are being encouraged to do their business easily. The state government is going to eliminate VAT liabilities up to Rs 25 thousand in old cases pending for more than 10 years of small traders. Along with this, many amendments will also be made in GST provisions under Ease of Doing Business in Chhattisgarh. In the meeting of the Council of Ministers chaired by Chief Minister Vishnu Dev 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 Legislative Assembly. More than 40 thousand traders of the state will benefit from the elimination of VAT liabilities up to Rs 25 thousand which are more than 10 years old. Along with this, the number of cases of more than 62 thousand lawsuits will also be reduced. The draft of Chhattisgarh Goods and Services Tax Amendment Bill was also approved in the cabinet meeting chaired by Chief Minister Sai. In this draft, amendments have been proposed in accordance with the decisions taken in the 55th meeting of the GST Council. According to the proposal made, the distribution of RCM taken in 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 Ease of Doing Business.
According to another amendment proposal, the pre-deposit amount of 20 percent required for presenting an appeal before the appellate authority in cases where the amount of penalty does not include tax demand has been reduced to 10 percent. This decision will prove to be convenient for the business world. Clarifying the position regarding taxability on vouchers in the GST system, the provision of ‘time of supply’ has been deleted. There was a difference of opinion among various advance ruling authorities in this regard, so this amendment was brought for the purpose of uniformity. Based on 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 the case of goods kept in the warehouses of Special Economic Zones, for which many times purchase and sale transactions are done without physical movement, an amendment has been brought to keep such transactions out of the purview of GST, so that Special Economic Zones can be promoted further.