Chhattisgarh Government Provides VAT Relief for Small Traders with Waiver of Up to Rs 25,000

In a significant move, the Chhattisgarh government has decided to waive VAT dues up to Rs 25,000 for cases pending over a decade. This decision is expected to benefit more than 40,000 small traders and reduce litigation in over 62,000 cases, easing compliance burdens. Officials highlighted that this initiative will significantly improve the business environment in the state.

The cabinet meeting, led by Chief Minister Vishnu Deo Sai, approved drafts for two amendment bills. These are the Chhattisgarh Goods and Services Tax Amendment Bill 2025 and the Chhattisgarh Settlement of Outstanding Tax, Interest and Penalty Amendment Bill 2025. Both bills are set to be presented during the Monsoon Session of the assembly starting on July 14.

GST Amendments and Business Climate

The proposed GST amendments include changes from the GST Council's 55th meeting. A notable relief is for penalty-only cases with no tax demand. Here, the pre-deposit for filing an appeal has been reduced from 20% to 10%, offering relief to businesses. This change aims to ease financial pressure on traders facing penalties.

Another important amendment involves removing the Time of Supply provision related to vouchers. This change addresses conflicting views among Advance Ruling Authorities, aiming for clarity and consistency in taxability matters. The amendment seeks to eliminate confusion and streamline processes for businesses dealing with vouchers.

SEZ Transactions and Trade Boost

A key proposal excludes SEZ warehousing transactions from GST coverage. Goods stored in Special Economic Zone warehouses can be traded multiple times without physical movement. This change is intended to enhance trade activities within SEZs by simplifying tax obligations and encouraging more transactions.

These legislative changes reflect a broader agenda to improve Chhattisgarh's business climate. By addressing long-standing issues like VAT dues and GST provisions, the government aims to create a more conducive environment for trade and commerce in the state.

The upcoming Monsoon Session will be crucial as these amendments are tabled for discussion and approval. The government's efforts focus on reducing litigation, easing compliance burdens, and fostering a favourable business atmosphere through these legislative measures.

With inputs from PTI