Chhattisgarh Government Waives VAT Dues Up to ₹25,000 for Small Traders in Old CasesChhattisgarh-govt-gives-a-breather-to-small-traders.png

The Chhattisgarh government has approved a waiver on Value Added Tax (VAT) dues of up to ₹25,000 for small traders. The waiver applies to cases pending for more than 10 years. As per news reports, this decision is to benefit over 40,000 traders across the state. It will also bring down litigation in more than 62,000 cases. It will help reduce the compliance load on small business owners.

Cabinet Approves Two Tax Amendment Bills

The decision was taken during a cabinet meeting chaired by Chief Minister Vishnu Deo Sai. The cabinet approved two key legislative drafts, the Chhattisgarh Goods and Services Tax (Amendment) Bill 2025 and the Chhattisgarh Settlement of Outstanding Tax, Interest and Penalty (Amendment) Bill 2025. These drafts will be tabled in the Monsoon Session of the state assembly beginning July 14, 2025. The amendments are part of a plan to update tax regulations in the state.

Changes to GST Rules Proposed

As part of the GST amendments, the provision related to ‘Time of Supply’ for vouchers has been removed. The decision comes after conflicting interpretations by various Advance Ruling Authorities. The removal is expected to bring consistency across GST rulings. These updates follow decisions made during the 55th GST Council meeting held earlier.

SEZ Warehousing Transactions Excluded from GST

The draft amendment also proposes the exclusion of warehousing transactions within Special Economic Zones (SEZs) from the GST framework. This includes goods stored in SEZ warehouses that are traded multiple times without physical movement. As per reports, this change is meant to address concerns raised by traders operating in SEZs.

Read More: Income Tax Department Raids 200 Sites Over Fake Political Donation Claims Under Section 80GGC!

Conclusion

With this set of approvals, the Chhattisgarh government is aiming to settle old tax matters and introduce changes to reduce confusion in GST procedures. The measures target both legacy issues under VAT and structural updates under GST.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.