Introduction of Simplified GST Registration Scheme for Small and Low-Risk Businesses – Automated Approval within Three Working Days for Eligible Applicants, Benefiting 96% of New Registrants (Effective from 1st November 2025)

The 56th meeting of the GST Council was held in New Delhi on September 03, 2025 under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council inter-alia made the recommendations relating to changes in GST tax rates, provide relief to individuals, common man, aspirational middle class and measures for facilitation of trade in GST.

Simplified GST Registration Scheme for Small and Low-Risk Businesses: In order to simplify the registration process, the Council has recommended the introduction of an optional simplified GST registration scheme wherein registration shall be granted on an automated basis within three working days from the date of submission of application in case of low risk applicants and  applicants who based on their own assessment, determine that their output tax liability on supplies to registered persons will not exceed Rs. 2.5 lakh per month (inclusive of CGST, SGST/UTGST and IGST).  The scheme will provide for voluntary opting into and withdrawal from the scheme.

This will benefit around 96% of new applicants applying for GST registration. This shall be operationalized from 1st November, 2025.

The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2163555