GST Registration to be Approved within 3 Working Days: 56th GST Council Proposes to Introduce New Scheme w.e.f. 1st November

The 56th GST Council meeting held on 3rd September has recommended the launch of a Simplified GST Registration Scheme to make the registration proceedings faster and easier for small and low-risk businesses which will be implemented from 1st November 2025.

The Finance Minister, Nirmala Sitharaman has said that the eligible applicants will be granted GST registration automatically within three working days from the date of submission of their application.

The scheme will be available to businesses that are considered low-risk and to those who, on a self-assessment basis, expect their monthly output tax liability on supplies to registered persons not to exceed ₹2.5 lakh (including CGST, SGST/UTGST, and IGST). Participation in this scheme will be optional, giving businesses the flexibility to opt in or withdraw at any time as per their requirements.

This scheme by the government is a favorable measure for small taxpayers, with estimates indicating that over 96% of new GST registrants will qualify. The suggested change will help new business operations and promote voluntary compliance by cutting down on manual checks and procedural delays. The scheme is set to be operational from 1st November 2025.

According to the press release, “In order to simplify the registration process, 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 Rs. 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% of new applicants applying for GST registration. This shall be operationalized from 1st November, 2025.”