Simplified GST registration rules: What has changed, how it will help small businesses

The scheme, which is expected to benefit as many as 96% of new applicants applying for GST registration, is optional and will provide an option to opt in or withdraw voluntarily. This will be operationalised from November 1, 2025.

“In order to simplify the registration process, the Council has recommended the introduction of an optional simplified GST registration scheme wherein registration shall be granted on an automated basis within three working days from the date of submission of application in case of low risk applicants and applicants who based on their own assessment, determine that their output tax liability on supplies to registered persons will not exceed ₹2.5 lakh per month (inclusive of CGST, SGST/UTGST and IGST). The scheme will provide for voluntary opting into and withdrawal from the scheme,” the Ministry of Finance said in a release on Wednesday.

This scheme has been introduced to help small and low-risk businesses.

Simplified GST registration mechanism for small suppliers

The council also approved, in-principle, the concept of a simplified GST registration mechanism for small suppliers making supplies through e-commerce operators (ECOs) across multiple states and facing challenges in maintaining a principal place of business in each state required currently under the GST framework. The details of this scheme will be placed before the GST Council.

“The Council approved, in-principle, the concept of a simplified GST registration mechanism for small suppliers making supplies through e-commerce operators (ECOs) across multiple States, facing challenges in maintaining a principal place of business in each State as currently required under the GST framework. The detailed modalities for operationalizing the said scheme will be placed before the GST Council,” the release said.

This scheme is aimed at enhancing the ease of compliance for small suppliers and facilitating their participation in e-commerce across states.

Earlier, SBI Research said the government should use technology to simplify the GST registration process and implement pre-filled returns to reduce manual intervention and eliminate mismatches. GST refunds should also be processed more efficiently in an automated manner.

The report said that the government should speed up the GST registration process and remove the need for manual intervention by leveraging technology to promote ease of living.