The GST Council, at its upcoming meeting on September 12, is likely to consider proposals to make Goods and Services Tax (GST) registration and surrender of GST registration automatic for eligible businesses.
Under the proposed mechanism, businesses with Input Tax Credit (ITC) of up to Rs 2.5 lakh per month could be brought under an automatic route for GST registration. The proposal could also cover businesses that operate exclusively through e-commerce platforms, which were earlier kept outside the scope of the automatic registration facility.
Automatic GST registration for e-commerce businesses
The GST Council is likely to consider extending the automatic GST registration facility to businesses with ITC of up to Rs 2.5 lakh per month that conduct their business only through e-commerce platforms.
At the previous GST Council meeting, the automatic registration facility was introduced for businesses meeting the specified ITC threshold. However, businesses operating through e-commerce platforms were excluded from the automatic route.
The proposal at the September 12 meeting could bring these e-commerce-focused businesses within the automatic registration framework.
GST registration surrender may also become automatic
Alongside automatic registration, the GST Council may consider making the surrender of GST registration automatic for eligible businesses.
Under the proposal, businesses with ITC of up to Rs 2.5 lakh per month could be allowed to surrender their GST registration through an automatic route. This could reduce the time and compliance burden involved in the existing registration surrender process.
The move is aimed at simplifying GST compliance and making it easier for smaller businesses to enter and exit the GST system.
90% companies could benefit
If the proposals are approved at the September 12 GST Council meeting, they could benefit around 90 per cent of companies, according to the information available on the proposed measures.
The final decision, eligibility conditions and implementation mechanism will depend on the GST Council’s deliberations and approval.
The proposed changes are aimed at further simplifying GST registration and surrender procedures and reducing the compliance burden for smaller businesses.
GST Council’s September 2025 meeting brought major rate cuts
The proposed changes come after the GST Council’s previous major meeting that was held last year, which focused on simplifying the GST structure and reducing tax rates across several sectors. At its 56th meeting on September 3, 2025, chaired by the Union Finance & Corporate Affairs Minister, the Council introduced significant GST rate reductions across sectors including leather and footwear, paper and packaging, logistics, handicrafts, textiles, food processing, toys and sports goods.
Some of the products that have been shifted to the 5 per cent GST slab include commercial vehicles such as trucks and delivery vans, whose GST rates have also been lowered to 18 per cent from 28 per cent. The rationale behind the moves is to keep costs low for individuals and organisations and to assist the MSMEs.
These efforts by the Council regarding GST simplification and ease of doing business form the basis for the discussions likely underway for the changes to be effected by the September 12 meeting.
