Fast-Track GST Registration For Small Businesses: Three Days From Date Of Application

The Goods and Services Tax (GST) Council has approved a simplified registration scheme designed to streamline the process for small and low-risk businesses, offering automated approval within just three working days from the date of submission of application.

The optional scheme, set to become operational from November 1, 2025, targets businesses with limited tax liability and those classified as low-risk applicants by the tax authorities.

Criteria

Under the new framework, businesses can qualify for the fast-track registration if they meet specific criteria.

1. Applicants must self-assess that their monthly output tax liability on supplies to registered persons will not exceed Rs 2.5 lakh, inclusive of Central GST (CGST), State GST (SGST)/Union Territory GST (UTGST), and Integrated GST (IGST).

2. If they are classified as 'low risk' by the authorities.

The Council estimates that approximately 96 per cent of new GST registration applicants will benefit from this simplified process.

Flexible Framework

The scheme incorporates flexibility by allowing businesses to voluntarily opt into the simplified registration process. Equally important, companies can withdraw from the scheme if their business circumstances change or if they no longer meet the eligibility criteria.

Implementation Timeline

The new registration mechanism will be fully operational from November 1, 2025.

The Council has given preliminary approval to a streamlined GST registration system for small suppliers operating through e-commerce platforms across multiple states.

Currently, these suppliers face difficulties maintaining a principal business location in each state as mandated by existing GST rules.

The GST Council will review detailed implementation guidelines for this scheme at a future meeting.

The initiative aims to reduce compliance burdens for such suppliers and encourage their participation in interstate e-commerce activities.

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