Under the chairpersonship of the Union Finance & Corporate Affairs Minister, Smt. Nirmala Sitharaman, the 56th meeting of the GST Council was held in New Delhi. With regard to changes in GST tax rates, providing relief to the common man, the aspirational middle class people, and introducing measures for the facilitation of trade in GST, the Council, inter alia, made several suggestions.
In a relief for small businesses and first-time taxpayers, the GST Council has proposed the launch of an ‘optional simplified GST registration scheme,’ aimed at easing entry into the Goods and Services Tax (GST) framework.
Benefits of Scheme Features
AutomaticApproval: For low-risk applicants, GST registration will be granted within three working days from the date of application submission.
Eligibility Threshold: The scheme is open to applicants who, established on self-assessment, anticipate their monthly output tax liability on supplies to registered persons to be within ₹2.5 lakh (inclusive of CGST, SGST/UTGST, and IGST).
Voluntary Opt-In/Out: Applicants can choose to voluntarily opt into the scheme and also withdraw from it if their business circumstances change.
Implementation Timeline: The new scheme will be functional from 1st November 2025.
Who Gets the Advantage?
From the estimates of the government, nearly 96% of new GST applicants are likely to come beneath the eligibility criteria. It specifies that the majority of startups, small traders, and service providers will get the advantage from a hassle-free, faster, and less intrusive registration process.
How the Scheme Impacts Businesses
- Reduced GST Compliance Burden: The same decision removes the longer verification delays, allowing faster onboarding into the GST ecosystem.
- Motivation for Startups & MSMEs: Small businesses are being motivated by the easier registration to enter the formal trade channels and expand operations.
- Improving the Way Businesses Work Together Smoothly: The automated approvals improve the clarity and efficiency, which lessens the uncertainty for the entrepreneurs.
A Step Towards Simplification
The easier registration scheme comes under the efforts of the government to facilitate GST compliance, which makes the tax system more taxpayer-friendly while protecting the revenue.
Improvement will be expected in India’s ease of doing business ranking in tax compliance from this initiative, encouraging more entrepreneurs to formalise their businesses under GST.
