Has the Centre Made GST Registration Easier for Small and Low-Risk Businesses?
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Synopsis
The Indian government has made strides in simplifying the GST registration process, promising approval for small businesses within just three days. This change is expected to foster growth and ease of compliance for low-risk applicants.
Key Takeaways
- The GST registration process has been simplified for small businesses.
- Eligible applicants will receive registration within three working days.
- Small businesses can opt for registration if expecting less than Rs 2.5 lakh input tax credit.
- Transition to normal registration is available based on risk assessment.
- Provisional refunds of 90 percent are on the horizon.
New Delhi, Sep 3 (NationPress) The government announced on Wednesday that to enhance the ease of doing business, the GST registration process has been significantly streamlined, particularly benefiting small businesses and low-risk applicants.
According to the new framework, eligible applicants will receive their registration within three working days.
In a statement to IANS, the Chairman of the Central Board of Indirect Taxes and Customs (CBIC), Sanjay Kumar Agarwal, explained that small businesses expecting to claim no more than Rs 2.5 lakh in input tax credit can take advantage of this simplified registration.
"This registration will be automatically processed by the system in three working days. Should they later wish to switch to normal registration as their business grows, there is a provision for that, and based on risk assessment, they can transition to the standard category," Agarwal noted, as the Centre undertakes reforms to the indirect tax framework, reducing the existing four slabs to two by eliminating the 12 percent and 28 percent rates, while keeping the 5 percent and 18 percent categories.
He also mentioned that the GST Council has approved a process concerning refunds.
“A provisional grant of 90 percent of the claimed amount is now possible. The GST Council has suggested an amendment to the rules, allowing this 90 percent to be approved within seven days by an officer after risk assessment by the system," the CBIC chief told IANS.
Currently, there is no provision for a provisional grant of 90 percent. The GST Council's proposed amendment will require parliamentary approval, which may take time.
Regarding the monthly GST return submission, Agarwal confirmed that there are no changes recommended by the GST Council.
Point of View
This initiative by the government underscores a commitment to fostering an environment conducive to business growth, particularly for small and low-risk entrepreneurs. Simplifying the GST registration process is a strategic move aimed at boosting compliance and encouraging economic activity, ultimately benefiting the nation.
NationPress
03/09/2025
Frequently Asked Questions
What is the newly introduced GST registration timeline?
Eligible applicants can expect their GST registration to be granted within three working days.
Who can opt for the simplified GST registration?
Small businesses anticipating to claim no more than Rs 2.5 lakh of input tax credit can choose this simplified registration.
What happens if a business grows and requires normal registration?
They can transition to the normal registration category based on a risk assessment.
Is there any update on GST refunds?
Yes, the GST Council has recommended an amendment to grant 90 percent of the claimed amount provisionally within seven days.
Are there changes to the monthly GST return filing?
Currently, there are no changes recommended for the monthly GST return filing process.
