chhattisgarh-govt-waives-vat-dues-of-up-to-25k-in-old-cases

Introducing significant changes in the state Goods and Services Tax (Amendment) Bill 2025, the Chhattisgarh government has decided to waive off Value Added Tax (VAT) dues to the tune of ₹25,000 in cases pending for more than a decade, said officials on Saturday.

More than 40,000 traders are expected to benefit from the state’s move to write off old VAT dues, officials pointed out, adding that it will also lessen the burden of litigation of more than 62,000 cases in courts. 

A cabinet meeting chaired by state chief minister, Vishnu Deo Sai, was held on Friday to discuss multiple amendments to the GST in order to improve the ease of doing business in the state. 

 

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An official release said drafts of the Chhattisgarh Goods and Services Tax (Amendment) Bill 2025 and Chhattisgarh Settlement of Outstanding Tax, Interest and Penalty (Amendment) Bill 2025 were approved, which incorporated key changes aligned with the decisions taken in the 55th meeting of the GST Council.

Both legislations will be tabled in the upcoming Monsoon Session of the assembly set to begin on July 14, it added.

“A major relief proposed pertains to penalty-only cases, where no tax demand is involved. In such cases, the mandatory pre-deposit for filing an appeal before the appellate authority has been reduced from 20 per cent to 10 per cent, providing much-needed relief to the business community,” stated the release.

Additionally, the provision related to ‘Time of Supply’ has also been deleted with respect to taxability on vouchers in an effort to bring uniformity.

“There were conflicting views among various Advance Ruling Authorities on the matter. This amendment aims to bring clarity and consistency,” it noted.

Another key amendment has been the proposal to exclude SEZ warehousing transactions from the GST ambit.

These involve goods kept in Special Economic Zone (SEZ) warehouses, which may be traded multiple times without any physical movement, the release said, adding the change is aimed at boosting trade activities in SEZs.