In a bid to boost ease of doing business and to further the “GST 2.0” reform agenda, the Goods and Services Tax Council (GST Council) has approved a new simplified registration scheme for small and low-risk businesses, set to be operational from 1 November 2025.
Under this scheme, eligible applicants — typically those with modest output tax liability (e.g., not exceeding around ₹ 2.5 lakh per month) or identified as low-risk by data analytics — will be able to obtain GST registration automatically within three working days, thanks to a technology-enabled, data-driven process.
Key Highlights
- Automatic Approvals: From November 1, most new GST registration applications will be processed automatically within 3 working days, without manual intervention.
- Low-Risk Focus: Nearly 96% of new applicants, especially small and low-risk businesses (with monthly tax liability below ~₹2.5 lakh), will get instant approval.
- Ease of Doing Business: The move aims to cut red tape, reduce delays, and make GST registration faster, transparent, and technology-driven.
- Taxpayer-Friendly Reform: The Finance Ministry has directed field officers to ensure courteous service, improved grievance handling, and zero harassment for genuine taxpayers.
Benefits
- Quick registration and business startup
- Less paperwork and human interface
- Boost to MSMEs and startups
- Greater compliance through trust and automation
Conclusion
The simplified GST registration marks a major step toward a more efficient, digital, and taxpayer-friendly system. By enabling automatic approvals from 1 Nov 2025, India moves closer to true Ease of Doing Business for small and honest taxpayers.
FAQs
1. When will the new GST registration system start?
Ans: The new simplified GST registration process will come into effect from 1 November 2025 across India.
2. What is the main change in the new system?
Ans: Most new GST registration applications will now be approved automatically within 3 working days, without manual officer intervention.
3. Who qualifies for automatic approval?
Ans: Businesses classified as low-risk — generally those with a monthly tax liability below ₹2.5 lakh or clean compliance records.
4. Will this help small businesses and startups?
Ans: Yes. Nearly 96% of new applicants (mostly MSMEs) will benefit through faster approvals and reduced compliance delays.
5. What documents are required under the new process?
Ans: Basic business details, PAN, Aadhaar authentication, and proof of business premises will still be needed — but fewer verifications will be done manually.
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