In a bid to push for ease of doing business, the GST Council has recommended measures like issuing a clarification on post-sales discount, registration in just three days, and provide for sanctioning of 90 per cent of refund claimed as provisional.
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 ₹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 per cent of new applicants,” according to a government statement issued post the meeting. This will come into effect from November 1, 2025.
Transparency for taxpayers
According to an tax expert, the recommendation to introduce process reforms, including automated GST registration within three days, directly addresses one of the most pressing concerns of the industry. For years, businesses — particularly MSMEs and start-ups — faced uncertainty and delays at the very first stage of compliance. By moving to a time-bound, technology-driven registration framework, the Council has ensured predictability and transparency for taxpayers.
“This reform not only eliminates a major entry barrier, but also reinforces India’s broader vision of enhancing ease of doing business under the GST regime,” he said.
Ease of refund
Under this, the council has recommended three measures. First, sanctioning 90 per cent of refund claims on account of zero-rated supply of goods, or services, or both (i.e. export of goods or services or both or supply to a Special Economic Zone developer/unit for authorised operations). Second, to provide for sanction of 90 per cent of refund claimed on provisional basis – in cases arising out of inverted duty structure, on similar lines as is presently available for refund in respect of zero-rated supply.
And third, the Council recommended amending the Act to remove the threshold limit for refunds arising out of exports made with payment of tax. This will particularly help small exporters making exports through courier, postal mode etc.
According to another tax expert, these are expected to be automatic and without scrutiny of the officers, who may post-facto do the complete scrutiny while sanctioning the final refunds. This is applicable for Inverted Duty Structure, Export and SEZ refunds alike, and is expected to unlock working capital in these times of geo-political headwinds.
In August 2025, the GST revenues witnessed growth on the back of a 20 per cent (approx) degrowth in GST refunds, including domestic and imports. While one argument could be that the number of refund applications were down, due to exports taking a hit, yet this seems improbable since the total gross revenue grew by around 7 per cent.
Therefore, “the better reason for degrowth in refunds could be the possible holding back of refunds on ground. In these times of geo-political uncertainty, when Indian manufacturers and exporters are reeling under pressure, it is important that the State and Centre GST formations clear up the GST refunds to support GDP growth,” he said.
