Minister of State for Finance Pankaj Chaudhary has stated that efforts to improve GST compliance are being carried out alongside rate rationalisation and measures to reduce the compliance burden on taxpayers.
Replying to a question in the Rajya Sabha on Wednesday, the Minister said several steps have been introduced to simplify procedures.
These include a simplified registration system under which automated GST registration is granted within three working days for low-risk applicants and for those opting for tax liability not exceeding Rs 2.5 lakh per month on supplies to registered persons. The system has been operational since November 1, 2025.
Refund Reforms to Ease Working Capital
To improve working capital availability, the GST Council in its 56th meeting recommended amendments to allow sanction of 90 per cent of the claimed refund on a provisional basis, subject to system-based risk assessment.
Amendments to Rule 91(2) of the CGST Rules, 2017, operational from October 1, 2025, enable provisional refund of 90 per cent of the claimed amount. Similar provisions have been recommended under Section 54(6) of the CGST Act for cases arising from inverted duty structures.
Pending legislative amendments, the Central Board of Indirect Taxes and Customs (CBIC) has issued instructions to field formations to implement the 90 per cent provisional refund mechanism.
Risk-Based Scrutiny
The Minister clarified that scrutiny and audit under GST are conducted for a limited number of taxpayers selected through data analysis and risk identification by the system. Low-risk taxpayers are generally not subject to such verification.
According to the minister, the approach aims to strengthen compliance while maintaining a low compliance burden and promoting ease of doing business, including for MSMEs.
