GST Registration is not optional: What changes in 2025 for businesses & online sellers

The Goods and Services Tax (GST) was implemented by the government in July 2017 to replace various existing indirect taxes including excise duty, VAT, purchase tax, and service tax. Under the GST system, specific goods and services are subject to taxation. Businesses that exceed an annual turnover of Rs 40 lakh for goods and Rs 20 lakh for services are required to register for GST.

Social media platform efiletax recently posted that GST registration rules for 2025 and noted that registration isn’t optional if you cross these thresholds or sell online from Day 1.

Here's the list of rules for 2025:

To register for GST on the portal, essential documents such as the applicant's Aad card, PAN card, business registration certificate, ID proof and address proof of the business owner, address proof of the business premises, bank account statement, and authorized signatory's authorization letter are required.

New rules for GST registration 

In April, the Central Board of Indirect Taxes and Customs (CBIC) introduced a set of instructions to simplify the Goods and Services Tax (GST) registration process. This initiative comes in response to mounting concerns over arbitrary delays and procedural difficulties faced by businesses. The revised guidelines are designed to curb discretionary practices by field officers, particularly their tendency to request documents not required by law. This is in line with efforts to address complaints from taxpayers about inconsistencies and harassment in the registration process across different jurisdictions.

Under the new rules, GST officers are instructed not to ask presumptive questions unrelated to the documents or information submitted by applicants. It is noted that varied practices are being followed by officers in relation to the verification of documents and details provided in FORM GST REG-01. It has also been observed that avoidable clarifications are being sought, leading to delays in obtaining registration as well as rejection of applications. The CBIC aims to ensure that genuine applicants receive their GST registration without undue obstacles.

Several references have been received by the Board regarding difficulties faced by applicants in obtaining GST registration. These challenges mainly stem from the nature of clarifications sought by officers concerning the information submitted in FORM GST REG-01 and requests for additional documents not listed in the appended document checklist. Such practices have led to significant delays and rejection of applications, highlighting the need for a more streamlined and consistent approach to the registration process.

The CBIC's initiative also seeks to balance the need to prevent the registration of fraudulent firms with ensuring that genuine applicants are not harassed. 

While on one hand, there is a need to prevent registration of fraudulent firms created for passing on input tax credit (ITC) without any underlying supply, on the other hand, there is a need to ensure that genuine applicants seeking registration are not unduly harassed. This dual focus aims to protect the integrity of the GST framework while supporting legitimate businesses in their operations.

An analysis of the queries raised in FORM GST REG-03 shows that these primarily relate to proof of principal place of business, business constitution, and identity details of authorised signatories or owners.