Good News: New GST Registration System From Nov 1 to Reduce Compliance Burden
The central government is set to launch a new GST registration system from November 1, 2025, designed to streamline the process for small businesses and public sector undertakings.The initiative was announced on Friday by Union Minister Nirmala Sitharaman.
This new framework aims to eliminate the manual registration process for small businesses with a monthly output tax liability below Rs 2.5 lakh. These applicants will receive automatic registration approval within the specified working days. This move is anticipated to cut down delays and reduce compliance burdens.
A simplified GST registration scheme, which forms part of the broader GST 2.0 reforms, will be implemented from November 1, according to Ranjeet Mahtani, Partner at Dhruva Advisors. He added that the automatic grant of registration for the majority of applicants should hopefully release the pressure of both field formations and taxpayers.
Experts highlighted that this simplification will enable the tax authority to concentrate its efforts on high-risk cases identified through system alerts and intelligence gathering for in-depth scrutiny and investigation. “Doing away with manual verification procedures and heightened scrutiny in case of every applicant had marred the registration experience of taxpayers and caused immense heartache,” Mahtani further stated.
However, experts have raised questions about the system’s dependency on the proportion of applicants that will be classified as “low risk.” Mahtani noted that the initiative’s success will depend heavily on the operational performance of the GSTN portal after the simplified procedure is implemented, given the system’s past history of technological glitches.
The new GST registration mechanism is a part of the central government’s broader GST 2.0 reform agenda. Effective from September 22, the government rationalized the tax structure into two primary slabs of 5 per cent and 18 per cent, alongside a special 40 per cent tax slab for ‘sin goods’.
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