A reform panel led by NITI Aayog member Rajiv Gauba has proposed a single nationwide GST registration for businesses, doing away with separate registrations in every state where they operate, sources said. If accepted, it will be the biggest overhaul of the goods and services tax regime since its 2017 launch.
The recommendation by the High-Level Committee on Regulatory Reforms is among a set of changes proposed for implementation this fiscal. Any decision on its adoption, however, will require discussions among the Centre, the GST Council and other stakeholders.
“Simplification of GST is required because the system remains complex and industry has consistently sought easier compliance processes,” a government official told Moneycontrol.
“One of the key GST-related recommendations is to simplify the registration framework by doing away with the requirement for businesses to obtain separate registrations in multiple states and replacing it with a single registration valid across India.”
The panel was constituted to identify measures to reduce regulatory burden and improve ease of doing business through non-financial sector reforms.
The proposal aims to simplify GST compliance and reduce the administrative burden on businesses.
Feasibility of implementation in FY27
At present, businesses operating in multiple states must obtain separate GST registrations in each state and comply with state-specific filing and compliance requirements.
The proposed framework seeks to replace this structure with a unified PAN-based registration, reducing duplication and easing compliance for firms with a nationwide presence.
The recommendation faces a crucial hurdle – determining how GST revenues would be shared among states under a single-registration framework.
“The proposal involves significant technical considerations. If businesses are allowed to operate under one national GST registration, a mechanism will have to be worked out to ensure that tax revenues are appropriately apportioned among states. Whether the proposal is ultimately found feasible will depend on how these issues are resolved,” another government official told Moneycontrol.
Sources said the former cabinet secretary-led panel has prepared a roadmap for the reform and consultations have to be held with stakeholders.
“Over the years, the law has evolved through multiple amendments, notifications and clarifications, and there is a need to make the framework easier for taxpayers to understand and comply with. GST simplification remains an important objective,” another government official.
Any changes to the GST law or compliance framework would require deliberations in the GST Council, where both the Centre and states are represented.
