From refunds to registrations: How GST changes will reshape compliance for MSMEs from Nov 2025

Starting November 2025, several key changes to India’s Goods and Services Tax (GST) framework will come into effect, aiming to simplify compliance while enforcing stricter timelines.

In a detailed explainer post on X (formerly Twitter), CA Nitin Kaushik broke down the latest Goods and Services Tax (GST) reforms that are set to reshape business compliance and refund processes starting November 2025. The proposed and active changes aim to make GST filings faster, more transparent, and less cumbersome — particularly for small taxpayers and exporters. 

Faster GST registration for small businesses: According to Kaushik, the GST Council has proposed an auto-approval mechanism for businesses with a monthly output tax below ₹2.5 lakh. If implemented, registration applications will be approved within three working days. 

“This could help over 90% of small businesses, reduce waiting time and paperwork, and boost ease of doing business,” Kaushik noted, adding that the proposal is currently being piloted by the government. 

Quick refunds for MSMEs & exporters: Currently, exporters receive 90% of their refunds on a provisional basis before verification. Kaushik highlighted that the Council is now considering extending this benefit to taxpayers under the inverted duty structure — a move that could significantly improve MSME cash flows. 

Strict correction window for FY 2024-25: Taxpayers will be able to amend sales, purchase, or credit details for FY 2024-25 only up to the October 2025 return, which is due by November 20, 2025. “There will be no extensions or grace periods,” Kaushik cautioned, emphasizing that timely reconciliation is now mandatory and that this change enforces greater discipline in GST compliance. 

Credit notes pending feature under testing: The GST Network (GSTN) is testing a new feature that allows credit notes to remain in “pending” status for up to one month before final submission. This update is designed to help suppliers reduce errors and improve cross-verification accuracy, Kaushik explained. 

3-year filing cutoff now in force: From April 2025, returns older than three years can no longer be filed or revised. The move penalises chronic late filers and enforces compliance discipline. 

“Once the window closes, even your CA cannot amend those returns,” Kaushik warned. 

He summed up the reforms as a move toward a more transparent and efficient GST ecosystem.  “GST is moving towards more transparency and accountability with stricter timelines but also faster processes,” he wrote. 

He urged taxpayers to adopt a proactive approach: “Used wisely, these changes can reduce compliance burden and improve business efficiency. Remember: finance rewards the proactive, not the passive.”