The Chhattisgarh government has announced significant relief measures for small traders, aiming to boost their businesses. The state government has decided to waive VAT liabilities of up to ₹25,000 that are over 10 years old. This decision will directly benefit over 40,000 traders in the state and reduce the burden of more than 62,000 pending cases.
The decisions were made during a cabinet meeting chaired by Chief Minister Vishnu Deo Sai. Two key bills were approved: the Chhattisgarh Goods and Services Tax (Amendment) Bill 2025 and the Chhattisgarh Arrears Tax, Interest and Penalty Settlement (Amendment) Bill 2025. These bills will be presented in the monsoon session of the assembly. Their implementation will facilitate business for small traders and promote ease of doing business.
The cabinet also approved several changes to the GST provisions. Input Service Distributors can now distribute the reverse charge mechanism (RCM) of IGST in their branch offices. Additionally, the requirement for a 20% deposit for appeals, where tax demands are not involved, has been reduced to 10%. The provisions for ‘time of supply’ have also been removed. The government is also implementing a track and trace mechanism for demerit goods like tobacco. Furthermore, purchases and sales of goods held in Special Economic Zones (SEZs) have been excluded from GST.
