Simplified GST Scheme: Government unveils quick registration for small and low-risk businesses

The Government of India on Wednesday introduced a Simplified GST Registration Scheme to make life easier for small and low-risk businesses.

According to the Central Board of Indirect Taxes and Customs (CBIC), this reform is designed to ease compliance by reducing paperwork, cutting waiting time, and ensuring a smoother start for entrepreneurs.

Under the new system, registration will be granted within three working days to eligible applicants.

Simple GST Registration#NextGenGST pic.twitter.com/57sASS8alP

— CBIC (@cbic_india) September 3, 2025

Businesses will be identified as low-risk based on data analysis and risk parameters. Those who do not claim input tax credit (ITC) of more than Rs 2.5 lakh per month can also opt for this scheme.

Read more: PM Modi announces GST Council’s approval of rate rationalisation and reforms

If any business wishes to withdraw from this option, they will still be provided with a procedure similar to the current registration process.

This new scheme is expected to benefit around 96% of fresh applicants, making GST registration faster, simpler, and more convenient.

With this step, the government hopes to support small businesses, encourage entrepreneurship, and strengthen the ease of doing business in India.

GST Slabs Reduced

The Government of India on Wednesday unveiled major reforms under the “Next-Generation GST” initiative, aimed at making life easier for small businesses and reducing the tax burden on the common man.

Finance Minister Nirmala Sitharaman announced that the current four GST slabs have been rationalised into two main slabs – 5% and 18%, with a higher 40% slab for sin goods such as tobacco and luxury items.

“This reform is not just about rate cuts. It’s also about simplifying processes, reducing compliance burden, and improving ease of living. Every tax on common man’s daily-use items has been reviewed, and in most cases, rates have come down drastically,” Sitharaman said at a press briefing.

Relief on Daily Essentials

Key tax cuts include:

• From 18% to 5%: Hair oil, soaps, shampoos, toothpaste, toothbrushes, bicycles, tableware, kitchenware and other household goods.
• From 5% to 0%: Ultra-high temperature milk, paneer, chena, and all Indian breads such as roti and paratha.
• From 12% or 18% to 5%: Food items including namkeen, bhujia, sauces, pasta, noodles, chocolates, coffee, preserved meat, cornflakes, butter and ghee.
• From 28% to 18%: Air conditioners, dishwashers, small cars, and motorcycles of up to 350 cc.

A Boost for Middle Class, Farmers and Businesses
Sitharaman stressed that labour-intensive industries, farmers, and the agriculture and health sectors will also benefit. “We have fixed inverted duty issues, corrected classifications, and ensured more predictability in GST. Refunds, return filing, and registration are all being simplified,” she added.

PM Modi’s Vision
Prime Minister Narendra Modi had earlier promised during his Independence Day speech that GST reforms would be implemented before Diwali. He said the changes would reduce taxes on essentials, support MSMEs and small vendors, and create a more citizen-friendly economy.

The wide-ranging reforms are expected to ease household budgets, encourage entrepreneurship, and strengthen economic growth.