Speaking on October 24, 2025, Finance Minister Nirmala Sitharaman announced that India will implement a new Simplified Goods and Services Tax (GST) registration scheme from November 1, 2025. The new system aims to grant automatic registration approvals within three working days for most new applicants, streamlining the process through technology and reducing human interaction. The initiative is part of broader “Next-Gen GST Reforms” to boost efficiency and support businesses, especially small and low-risk ones. 

Key features of the new scheme

  • Automatic approval: For eligible applicants, registration will be automatically granted within three working days from the date of submission.
  • Two categories of eligibility: Automatic approval is available for two types of applicants:
    • Those identified as low-risk based on technology and data analytics.
    • Those who self-assess that their monthly output tax liability will not exceed ₹2.5 lakh.
  • Targeted beneficiaries: The reform is designed to benefit around 96% of new GST applicants, including small businesses, low-risk ventures, and public sector entities.
  • Optional participation: The simplified scheme is voluntary, allowing businesses the flexibility to opt in or revert to the regular registration process if their business needs change.
  • Reduced burden: The move is intended to shift the heavy lifting from the taxpayer to technology, reducing the need for extensive paperwork and manual verification.
  • Supporting infrastructure: The minister directed GST officials to ensure that GST Seva Kendras are well-staffed and maintained to provide timely and quality assistance to taxpayers. 

Context of broader GST reforms

This initiative is a continuation of recent significant GST changes approved by the GST Council in September 2025, which included: 

  • Rate simplification: The GST structure was simplified to a two-slab system of 5% and 18%, with a 40% rate for luxury and sin goods.
  • Rate reductions: Taxes were lowered on a range of essential items, agricultural equipment, and certain consumer durables.
  • Correction of inverted duty structures: The reform package addressed issues with inverted duty structures in specific sectors, such as textiles. 

Implementation and goals

Finance Minister Sitharaman emphasized that the success of these reforms lies in their seamless execution by field officers, urging them to act with integrity and utilize technology effectively. The overall goal is to make the GST system more transparent, efficient, and taxpayer-friendly, thereby improving the ease of doing business and boosting economic growth.