Simplified 3-Day GST Registration System to be Rolled Out from November 1: FM Nirmala Sitharaman
GST registration to get 3-day auto approval from Nov 1, says Finance Minister Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman on Friday announced that a simplified Goods and Services Tax (GST) registration system will come into effect from November 1, 2025, marking a major step in easing compliance for businesses and aligning with the broader GST 2.0 reform agenda.
Announcing the measure during the inauguration of the new CGST Bhawan in Ghaziabad, Sitharaman said the revamped system would introduce risk-based processing for new registrations, ensuring faster approvals for genuine taxpayers. “The objective is to make GST simpler, fairer, and more business-friendly-especially for small enterprises and public sector undertakings,” the Union Finance Minister stated.
Under the new framework, applicants classified as ‘low-risk’-including those with a monthly output tax liability below ₹2.5 lakh-will receive automatic registration approval within three working days, eliminating the need for extended verification procedures. According to official estimates, this measure is expected to benefit nearly 96 percent of new GST applicants, drastically reducing the time and administrative burden associated with onboarding.
The move is designed to streamline the compliance ecosystem and encourage wider voluntary participation in the GST regime. Currently, registration approval may take up to 10–15 working days depending on verification processes, leading to delays for small businesses seeking to commence operations. The automated mechanism will rely on analytics-based risk profiling to distinguish genuine applicants from potentially fraudulent entities.
The initiative forms part of the comprehensive GST 2.0 reforms, which also envisage a rationalised two-rate structure of 5% and 18%, with a higher 40% bracket reserved for luxury and sin goods. The government’s reform roadmap includes simplified return filing, automated refunds, and AI-enabled audit triggers to enhance efficiency and prevent revenue leakages while reducing human intervention.
Minister Sitharaman emphasised that the reforms aim to “reward honesty, streamline processes, and strengthen compliance without harassment.” She underlined that robust risk-based monitoring would continue to ensure that fraudulent registrations or fake invoicing do not exploit the system’s flexibility.
The new registration process especially benefits micro, small, and medium enterprises (MSMEs), who often face procedural hurdles in obtaining timely GST registration.
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