Automated GST Registration for Low-Risk Applicants from 1st Nov 2025

Last updated: 25 September 2025


The Central Board of Indirect Taxes and Customs (CBIC) will roll out an automated GST registration system for low-risk applicants from November 1, 2025.

According to Shashank Priya, Special Secretary and Member (GST), Ministry of Finance, applicants whose monthly GST liability on supplies to registered persons does not exceed Rs 2.5 lakh will be granted registration within three working days of submitting their application. The announcement was made at the ASSOCHAM National Conclave on GST 2.0: "Next Generation GST Reforms for Viksit Bharat."

Automated GST Registration for Low-Risk Applicants from 1st Nov 2025

He explained that while GST registration norms were tightened in recent years to curb misuse, small traders and operators had raised concerns about delays. The new scheme, recommended by the GST Council in its September 3 meeting, seeks to balance compliance with ease of doing business. "Those declaring tax passing of Input Tax Credit under Rs 2.5 lakh monthly will get automated registration within three working days," he said, adding that trusted categories such as public sector entities would also be eligible.

The scheme will be voluntary, allowing applicants to opt in or withdraw and is expected to benefit nearly 96% of new GST applicants.

GST 2.0 Reforms - A Broader Push

The simplified registration is part of the government's larger GST 2.0 reforms, which came into effect on September 22, 2025. The GST Council reduced the tax structure from four slabs (5%, 12%, 18%, 28%) to two principal rates - 5% (merit rate) and 18% (standard rate), with a 40% special rate for sin and luxury goods.

Finance Minister Nirmala Sitharaman described the reforms as a "Diwali gift for the nation", noting that 99% of goods previously taxed at 12% are now under the 5% slab, easing the burden on households and businesses alike.

Impact on Businesses & Economy

Since its rollout in 2017, GST has transformed India's indirect tax ecosystem. Shashank highlighted that GST has led to 200% growth in revenue and 100% growth in registered taxpayers, indicating rising formalisation of the economy. The removal of state border checkpoints has also cut logistics costs and boosted efficiency for industries.

Experts believe the reforms will strengthen India's consumption-driven growth, improve compliance, and provide a significant boost to small traders by reducing paperwork and enabling quicker business onboarding.


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