New GST registration system from November 2025: Key changes for small businesses
Under the updated system, low-risk applicants—defined as businesses with a monthly output tax liability below Rs 2.5 lakh—will receive automated registration approvals within three working days.
- Oct 28, 2025,
- Updated Oct 28, 2025 6:24 PM IST
The government will introduce a revamped Goods and Services Tax (GST) registration system starting November 1, 2025, under the broader GST 2.0 reform initiative. The new framework aims to simplify compliance, shorten processing timelines, and strengthen risk-based monitoring, particularly benefiting small and medium enterprises (SMEs).
Under the updated system, low-risk applicants—defined as businesses with a monthly output tax liability below Rs 2.5 lakh—will receive automated registration approvals within three working days. Officials estimate that this measure will cover nearly 96% of new applicants, significantly reducing the time and paperwork currently involved in the registration process.
The automated mechanism will rely on data analytics, PAN verification, and Aadhaar-based authentication to verify applicants in real time. Taxpayers identified as high-risk will still undergo manual scrutiny, allowing authorities to focus resources on potential fraud or fake invoice cases rather than routine applications.
The reform comes alongside other key components of GST 2.0, including a simplified two-slab structure—5% and 18%—with a 40% rate reserved for luxury and sin goods. The Finance Ministry is also working on automated refund systems, rationalised return filings, and risk-based audits to further reduce compliance burdens and improve transparency.
Announcing the changes at the inauguration of the new CGST Bhawan in Ghaziabad, Union Finance Minister Nirmala Sitharaman said the government’s goal is to create a “more efficient, technology-driven GST system” that encourages voluntary compliance while maintaining strong enforcement against tax evasion.
Tax experts have welcomed the initiative, saying it will ease entry for small taxpayers and free up administrative bandwidth. However, they cautioned that the success of the reform depends on seamless functioning of the GST Network (GSTN) and the accuracy of the new risk-classification algorithm.
Past technical glitches on the GST portal have delayed registrations and refunds, particularly for micro-entrepreneurs. Officials have assured that the revamped platform will undergo extensive testing before the nationwide rollout.
Once implemented, the new system is expected to cut red tape, enhance transparency, and accelerate business onboarding, aligning India’s indirect tax framework more closely with global best practices in digital compliance.
The government will introduce a revamped Goods and Services Tax (GST) registration system starting November 1, 2025, under the broader GST 2.0 reform initiative. The new framework aims to simplify compliance, shorten processing timelines, and strengthen risk-based monitoring, particularly benefiting small and medium enterprises (SMEs).
Under the updated system, low-risk applicants—defined as businesses with a monthly output tax liability below Rs 2.5 lakh—will receive automated registration approvals within three working days. Officials estimate that this measure will cover nearly 96% of new applicants, significantly reducing the time and paperwork currently involved in the registration process.
The automated mechanism will rely on data analytics, PAN verification, and Aadhaar-based authentication to verify applicants in real time. Taxpayers identified as high-risk will still undergo manual scrutiny, allowing authorities to focus resources on potential fraud or fake invoice cases rather than routine applications.
The reform comes alongside other key components of GST 2.0, including a simplified two-slab structure—5% and 18%—with a 40% rate reserved for luxury and sin goods. The Finance Ministry is also working on automated refund systems, rationalised return filings, and risk-based audits to further reduce compliance burdens and improve transparency.
Announcing the changes at the inauguration of the new CGST Bhawan in Ghaziabad, Union Finance Minister Nirmala Sitharaman said the government’s goal is to create a “more efficient, technology-driven GST system” that encourages voluntary compliance while maintaining strong enforcement against tax evasion.
Tax experts have welcomed the initiative, saying it will ease entry for small taxpayers and free up administrative bandwidth. However, they cautioned that the success of the reform depends on seamless functioning of the GST Network (GSTN) and the accuracy of the new risk-classification algorithm.
Past technical glitches on the GST portal have delayed registrations and refunds, particularly for micro-entrepreneurs. Officials have assured that the revamped platform will undergo extensive testing before the nationwide rollout.
Once implemented, the new system is expected to cut red tape, enhance transparency, and accelerate business onboarding, aligning India’s indirect tax framework more closely with global best practices in digital compliance.