Union Finance Minister Nirmala Sitharaman announced on Friday that India will implement a simplified Goods and Services Tax (GST) registration process starting November 1, 2025, designed to accelerate approvals for low-risk applicants. Speaking at the inauguration of the new Central GST (CGST) Bhawan in Ghaziabad, Sitharaman outlined the reform as a cornerstone of the GST 2.0 initiative, aimed at reducing compliance burdens for small businesses and public sector entities. Under the new framework, applicants with monthly output tax liability below Rs 2.5 lakh—comprising nearly 96 per cent of new registrants—will receive automatic approvals within three working days, eliminating prolonged verification delays.

The streamlined system leverages risk-based profiling to expedite onboarding while maintaining scrutiny for high-risk cases. Previously, GST registration often took weeks due to manual checks and document verification, deterring micro-entrepreneurs and startups. Sitharaman emphasised that the change aligns with the government’s broader push for a transparent, business-friendly tax regime. “We want honest taxpayers to thrive without procedural hurdles, while ensuring robust action against evasion,” she stated. The initiative also includes automated refund processing, simplified return filing, and data-driven audits to minimise human intervention and corruption risks.

Part of the GST 2.0 overhaul, the reform accompanies a rationalised two-slab structure—5 per cent for essentials and 18 per cent for most goods and services—with a 40 per cent rate retained for luxury and demerit items like tobacco and aerated drinks. Introduced in 2017, GST unified India’s fragmented indirect tax system but faced criticism for complexity and compliance costs. Recent council meetings have addressed these concerns, with states agreeing to compensate revenue losses through efficiency gains. The new CGST Bhawan, equipped with digital infrastructure, symbolises the shift toward tech-enabled governance, housing advanced analytics units to detect fraud patterns in real time.

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Industry bodies welcomed the announcement, projecting faster market entry for millions of small vendors and gig workers. Public sector undertakings, previously bogged down by bureaucratic approvals, will also benefit from quicker integration into the GST network. As India targets a $5 trillion economy, these measures signal a maturing tax ecosystem focused on ease of doing business. With implementation just days away, tax authorities are conducting nationwide workshops to ensure a seamless transition, reinforcing the government’s commitment to balancing revenue stability with entrepreneurial growth.

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