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India to Roll Out Simplified GST Registration from November 1, 2025 — Major Relief for Small Businesses

Oct 28, 2025 | 12:34 PM

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New Delhi, October 28, 2025 – The Goods and Services Tax (GST) regime is set for a major overhaul next month as the government officially introduces a new simplified registration system under the broader “GST 2.0” reform agenda. The move, coming into effect from November 1, 2025, aims to make it easier and faster for small and medium businesses to enter the GST framework, thereby strengthening India’s formal economy.

According to a notification by the Ministry of Finance, the new system will automatically approve GST registrations within three working days for businesses classified as low-risk entities — particularly those whose monthly output tax liability is below ₹2.5 lakh.

Officials believe this automation could benefit nearly 96% of new GST applicants, especially MSMEs, startups, and service providers who often face delays and procedural hurdles during registration.

Key Highlights of the New System

1. Auto-Approval for Low-Risk Taxpayers:

The new AI-based risk assessment module will process applications in real time. If no risk flags arise, the registration will be auto-approved within three working days — reducing the waiting period from the earlier average of 15–20 days.

2. Paperless Verification:

Physical verification will now be limited only to high-risk applicants or suspicious cases. All others can complete registration digitally using Aadhaar-based authentication.

3. Ease for MSMEs and Startups:

The initiative will particularly help small manufacturers, freelancers, and new entrepreneurs who were previously discouraged by complex documentation and delays.

4. Part of “GST 2.0” Reforms:

The government is also finalising a two-slab GST structure — merging 12% and 18% categories into a single middle rate — to further simplify compliance.

What Businesses Should Do Before November 1

Prepare Documentation Digitally: Ensure all key KYC documents, business proof, and Aadhaar details are updated.
Check Risk Classification: Businesses with past compliance issues, mismatched returns, or high refund claims may still face manual scrutiny.
Align Accounting Systems: With the government pushing automation, your internal accounting software should integrate seamlessly with GSTN systems.
Monitor Council Updates: The next GST Council meeting in November is expected to detail further slab restructuring and rate rationalisation.