New GST registration system from Nov: What will change for small businesses

The government will roll out a revamped Goods and Services Tax (GST) registration system from November 1, 2025, as part of ongoing GST 2.0 reforms designed to simplify compliance and reduce processing bottlenecks.

The upcoming system will rely on automated approvals for applicants assessed as low-risk, including those with a monthly output tax liability below ₹2.5 lakh. Registrations for such taxpayers are expected to be completed within three working days, potentially covering about 96% of new applicants.

The move seeks to reduce delays linked to manual verification and streamline onboarding, especially for small businesses and public sector units.

Experts say the reform will allow tax authorities to better focus on cases flagged as high-risk through data analytics and intelligence inputs. This is aimed at curbing fraud without burdening compliant taxpayers with extensive scrutiny.

The registration overhaul accompanies other GST 2.0 measures already in motion, including a simplified two-slab rate structure of 5% and 18%, and a 40% rate applied to select luxury and sin goods.

Plans for automated refunds, rationalised filings, and risk-based audits are also part of the wider reform package.

Announcing the changes at the inauguration of the new CGST Bhawan in Ghaziabad, Union Finance Minister Nirmala Sitharaman said the reforms intend to make the system more efficient and transparent, while ensuring stronger enforcement against non-compliance.

As the transition approaches, experts note the success of the registration update will hinge on smooth functioning of the GSTN platform and accurate risk categorisation. System glitches in the past have posed challenges for taxpayers attempting to register or update details.

The November rollout is expected to considerably ease compliance for most new registrants, aligning the GST regime more closely with the needs of small enterprises.