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.