56th GST Council Recommends Simplified Registration Schemes for Small Businesses

The 56th GST Council meeting has brought some welcome news for small businesses and entrepreneurs. In its bid to make the Goods and Services Tax (GST) regime more business-friendly, the Council has put forward key recommendations aimed at easing the registration process and reducing compliance burdens.

1. Simplified GST Registration for Small and Low-Risk Businesses

To support small and low-risk businesses, the Council has recommended a new Simplified GST Registration Scheme.

  • Objective: Streamline the registration process and cut down procedural delays.
  • Key Feature: Registration will be automatically granted within three working days of submitting the application.
  • Eligibility: Low-risk applicants and businesses whose monthly self-assessed output tax liability (on supplies to registered persons) does not exceed ₹2.5 lakh (inclusive of CGST, SGST/UTGST, and IGST).
  • Flexibility: Applicants can voluntarily opt in or withdraw from the scheme at any time.
  • Impact: This move is expected to benefit nearly 96% of new GST applicants, saving them both time and effort.
  • Effective Date: The scheme will be operational from 1st November 2025.

2. Simplified Registration for Small Suppliers on E-Commerce Platforms

Another important recommendation is the introduction of a simplified registration process for small suppliers selling through e-commerce operators (ECOs).

  • Objective: To make compliance easier for small sellers who supply across multiple states through e-commerce platforms.
  • Challenge Addressed: Currently, sellers are required to maintain a principal place of business in each state they operate, which creates unnecessary compliance hurdles.
  • Council’s Decision: The concept has been approved in-principle, and detailed operational guidelines will be placed before the Council in the coming months.

Why This Matters

These recommendations mark a significant step toward making GST compliance less burdensome for small businesses. By enabling faster registration and addressing long-standing challenges faced by e-commerce sellers, the GST Council is working toward a more inclusive, streamlined tax system that promotes ease of doing business.

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