CHENNAI: Union Finance Minister Nirmala Sitharaman on Friday announced that a new GST registration system will be rolled out from November 1, 2025. The move is aimed at simplifying the registration process, particularly for small businesses and public sector entities.
Under the new system, applicants identified as low-risk, including those whose monthly output tax liability is under Rs 2.5 lakh, will receive automatic registration approvals within three working days. This change is expected to benefit nearly 96 percent of new applicants, reducing delays and easing compliance burdens.
The reform is part of the broader GST 2.0 initiative, which also includes a rationalised two-slab tax structure of 5 percent and 18 percent, with a 40 percent rate for luxury and sin goods. Other measures include streamlined filing processes, automated refunds, and risk-based audits to improve efficiency and ensure fair compliance.
Speaking at the inauguration of the new CGST Bhawan in Ghaziabad, Minister Sitharaman emphasised that the government aims to make the GST system more efficient, transparent, and business-friendly. She noted that the reforms would help honest taxpayers while ensuring strict action against non-compliance.
The new GST registration system is expected to significantly ease the process for small businesses and public sector units, supporting faster onboarding and fostering a more transparent and growth-oriented tax environment.