New GST rules from Nov 2025: 3-day registration, 3-year filing limit, faster refunds

Starting November 1, 2025, the Goods and Services Tax (GST) framework in India has undergone significant updates aimed at easing compliance for small businesses while tightening timelines for return filings and corrections. The most notable change is the introduction of a simplified GST registration scheme for small and low-risk businesses, promising faster approvals and reduced paperwork.

Simplified GST registration

Under the new system, eligible applicants will receive GST registration within three working days. The scheme, approved by the GST Council in its September 3 meeting, applies to small and medium enterprises (SMEs) that either:

Are identified by the GST system’s data analytics engine as low-risk, or

Self-assess that their monthly output tax liability will not exceed ₹2.5 lakh (including CGST, SGST/UTGST, and IGST).

The scheme is voluntary, allowing businesses to opt in or withdraw at any time. According to tax expert CA Nitin Kaushik, this reform “will make it significantly easier for small entrepreneurs to start and scale without getting buried under red tape.”

He explained that the initiative is part of a broader shift in GST administration — one that combines data-driven scrutiny with trust-based facilitation for compliant taxpayers.

Three-year filing cutoff rule

Another critical reform, effective from April 2025, is the three-year filing and correction cutoff rule. Under this provision, GST returns older than three years cannot be filed or revised, even by chartered accountants or auditors.

Kaushik emphasised that this move targets habitual late filers and aims to promote timely compliance and transparency. “Once the window closes, not even your CA can amend those returns,” he cautioned, adding that businesses must now adopt robust internal accounting systems to avoid penalties or revenue loss.

Faster refunds

Exporters stand to benefit from the faster refund processing system that has been integrated into the GST Network (GSTN). Refund claims are now being auto-verified using invoice-matching technology, cutting down the manual scrutiny that often delayed payments.

Additionally, defined correction windows for errors in GST filings have been formalized, ensuring that businesses have clarity on when and how they can amend returns — improving overall efficiency.

Wider implications

Experts believe these reforms will reshape compliance culture across the MSME ecosystem. By combining technology with accountability, the GST Council aims to reduce tax evasion while rewarding consistent filers. Industry associations have also welcomed the changes, calling them “a practical step toward reducing compliance friction and improving the ease of doing business.”

The GST Council’s November reforms reflect a push toward greater transparency, accountability, and efficiency in India’s indirect tax regime. “GST is moving toward a system that rewards proactive taxpayers,” Kaushik noted.

With faster registrations, strict timelines, and digitally enabled compliance, these changes are expected to ease the burden on genuine taxpayers while deterring misuse. For businesses that stay disciplined, the message is clear — less paperwork, faster refunds, and more control over compliance.