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The scheme promises time-bound registration—within three working days.
New Delhi: Small and low-risk businesses will now be able to obtain Goods and Services Tax (GST) registration within three working days, as the government has rolled out a simplified GST registration scheme for micro, small and medium enterprises (MSMEs) starting today. The move aims to ease compliance burden and encourage voluntary registration among small taxpayers who often find GST procedures cumbersome.
Faster Registration for Low-Risk Applicants
Under the new system, GST applicants identified as low-risk through data analytics, or those who self-assess that their monthly output tax liability does not exceed ₹2.5 lakh (including CGST, SGST/UTGST and IGST), will be eligible to apply through the simplified route.
The scheme promises time-bound registration—within three working days—unless discrepancies or risks are detected during verification. This initiative is expected to substantially reduce the processing time that previously stretched up to a week or more for new applicants.
Approved by the GST Council
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state finance ministers, had approved the simplified registration framework in its meeting held on September 3. The Council had observed that small and low-turnover businesses contribute significantly to India’s tax base but face procedural hurdles during registration.
The new scheme also allows for voluntary opting in and withdrawal, providing flexibility to taxpayers who can switch to the standard registration process if they wish to expand their operations or exceed the prescribed turnover limit.
96% of New Applicants to Benefit
Launching the facility at the inauguration of the CGST Building in Ghaziabad, Finance Minister Nirmala Sitharaman said the initiative would benefit nearly 96 per cent of new GST applicants, mainly comprising small traders, start-ups, and service providers.
“The task of the field formation is to operationalise the scheme and ensure that there is no friction in the process,” the minister said, urging officials to maintain transparency and speed in implementation.
She also directed the Central Board of Indirect Taxes and Customs (CBIC) to establish a dedicated help desk at all GST Seva Kendras to assist taxpayers and guide them through the simplified registration procedure.
Growing GST Ecosystem
increase compliance among unregistered small enterprises, particularly in the retail, service, and manufacturing sectors, as of July 2017. Officials expect the simplified registration to boost compliance among unregistered small enterprises, particularly in the retail, service, and manufacturing sectors that often operate at the margins of the formal economy.
Tax experts have welcomed the move, noting that simplified procedures combined with digital data analytics will help the government identify genuine taxpayers while filtering out fraudulent registrations.
